Untouchable: Can former ASX darling WiseTech move on from White saga?

The chart above shows the WiseTech share price notching its all-time high of $141.61 on 22 November – the day before the company announced that “distractions” relating to the White issue had caused a delay in the launch of its new Container Transport Optimisation module – triggering a $50-$100 million revenue downgrade. WiseTech's share price is now closer to $80, with billions having been wiped off it's market capitalisation.

Yesterday, WiseTech board’s official review was tabled, and has now laid bare the extent of White’s missteps and raises a pivotal question: Is Richard White untouchable? Here’s how the saga unfolded and what it means for WiseTech’s future.

How the Richard White Wisetech saga started

The cracks appeared in October 2024 when a civil court case thrust White’s personal life into the spotlight. A multimillion-dollar settlement with an alleged former lover surfaced alongside allegations of inappropriate behaviour toward female employees and associates.

More damning, were revelations of undisclosed relationships that blurred personal and professional lines, as White’s relationship with an associate of a supplier suggested another layer of potential impropriety. The supplier, linked to WiseTech’s logistics software ecosystem, benefited from contracts potentially influenced by White’s personal connection. There were also payments or property dealings not flagged as related-party transactions.

As share price cratered, consequences for White as far as his position within the company was concerned were arguably minimal – it was proposed that he transition to a $1 million per annum “consultancy”. But this blurring of lines between his stewardship and ownership of the company clearly caused substantial tension among board members, which came to a head late last month when fresh complaints surfaced against White.

On February 24, four independent directors – Chair Richard Dammery, Lisa Brock, Michael Malone, and Fiona Pak-Poy – simultaneously resigned, citing “intractable differences” with White’s ongoing involvement. Their exit, effective February 26 after signing off on the company’s first half financials, triggered a 20% share price plunge on the day, slashing billions from WiseTech’s value as well as White’s personal fortune.

To top it off, White returned as executive chairman on February 26, backed by allies remaining on the board. However, the move breached ASX rules requiring three non-executive audit committee members, drawing ASIC’s ire.

WiseTech board review – He’s just a very naughty boy!

The board’s review into White’s behaviour, released Wednesday, confirmed White misled directors about two key relationships, one with an employee involving undisclosed financial support and another with a supplier’s associate tied to commercial dealings. The review branded these lapses “serious in nature", "not acceptable", and "must not be repeated”, acknowledging White’s failure to disclose conflicts of interest.

The supplier case hinted at favouritism, as certain WiseTech contracts may have been skewed by White’s personal ties, potentially compromising shareholder value. The employee relationship, meanwhile, breached transparency norms, with White’s nondisclosure deemed a betrayal of fiduciary duty.

Yet (much like the board’s October response) the review stopped short of drastic action. The board acknowledged White’s “exceptional knowledge and value” as co-founder, crediting his strategic vision, product expertise, and customer relationships as being critical to the business. White himself issued a mea culpa, pledging to uphold WiseTech’s culture while acknowledging the gravity of his actions.

So, is White untouchable?

The message? White is reprimanded but indispensable. He remains in control of the business with nothing more than a stern warning. The company will now look to appoint new directors to plug the governance gap and proceed with its strategic plans.

But, and here’s the potential sting in the tail for White and suffering WiseTech shareholders – ASIC’s shadow looms large – with its probe intensifying after it recently announced it had summoned the departed directors for testimony. If ASIC uncovers systemic breaches, for example, that White’s conflicts negatively impacted shareholders, then penalties or forced restructuring could follow.

So, is Richard White untouchable? For now, yes – but potentially not forever. Even if he and WiseTech can dodge the ASIC bullet, the recent share price performance suggests investors are far less enthused by White's once-Midas touch, and the stench of scandal has likely sparked growing unease. Super funds have voiced their concerns over governance, and shareholder advocate groups are circling, demanding accountability.

An old market adage is “investors hate uncertainty”, and it would seem there’s still plenty of uncertainty ahead for WiseTech. I would love to know your thoughts on the matter in the comments section below! 👇

This article first appeared on Market Index on 20 March 2025.