Richard White is back as WiseTech boss after prevailing in the fight for control of the company

WiseTech (ASX:WTC) announced this morning that,’ Richard White has been appointed to the Board as Executive Chairman’. But this is not a career board executive, this is a case of the largest shareholder and founder of the company is back onboard after a 4 month stint without near total control.

Richard White prevailed in the fight for control

There’s little surprise about this. White founded the company in 1994, led it privately until its ASX listing in 2016 and guided it to an extensive period of global growth. He was forced to resign as CEO in October after allegations of inappropriate conduct, but was permitted to return after a short period of leave as a $1m per year consultant on a 10-year term.

We don’t assume he would’ve been happy with being forced out in the first place. Only a couple of days ago, four of the five directors on the board (Lisa Brock, Richard Dammery, Michael Malone and Fiona Pak-Poy) were resigning. Apparently they determined it was ‘in the best interests of the company to stand aside’.

And ‘This followed intractable differences in the Board and differing views around the ongoing role of the Founder and Founding CEO, Richard White’. They were not so keen on him coming back as a $1m-per year consultant.

It’s not just King Richard who is back

So White is back as Executive Chairman, and will lead WiseTech’s product development and growth strategy. Investors were told his pay had not yet been determined, but wouldn’t exceed his pre-October 2024 CEO salary.

Also returning to the company is Mike Gregg, who hails from shareholder Shearwater Capital and spent 15 years on the board from 2007 to 2022. And Gregg was appointed ‘Lead Independent Director’, to have carriage of governance related matters and a Board renewal process. Remaining on the board is Maree Issacs, who co-founded the company.

There will need to be more appointed because there need to be at least 3 non-executive directors on its Audit and Risk Committee. The company expects at least 1 appointment in the next 4 weeks.

As we said earlier this week, don’t hedge your bets on any ‘intractable differences’ on Richard White’s role to emerge from the new board any time soon, even with additional directors proposed to be added. We don’t imagine the company will agree to let anyone join the board who does not agree with the company’s plans for Richard White’s future with it.

WiseTech releases 1H25 results

Earlier this week, WiseTech told investors that it expects FY25 revenue to be at the bottom end of its guidance range, due to further delays to the rollout of its Breakthrough Products. The company’s EBITDA, granted, would be towards the top of the previously announced range due to an efficiency program.

Today it released official results. The company made US$381m revenue, up 17% (15% organically – meaning excluding the impact of acquisitions). EBITDA was $192.3m, representing a margin of 50%, and its profit was $112.1m (up 34%) on an underlying basis. Its statutory profit was $106.4m, up 38%.

Source: Company

Conclusion

So is it all back to normal at WiseTech? Well, perhaps. It is certainly the case that there’ll be no disputes amongst the board that Richard White is boss of the company. Some may forget that investigations into these matters are ongoing. If and when formal findings come out, what will happen will depend on the gravity of them.

But it’ll be pretty unlikely the board will try and force him out – it is more likely that White himself will quit or perhaps shareholders may try and spill the board at an AGM, something they have the power to do. If investors want change at the company, they can’t count in it to happen with a board comprising of a founder and those who will be unlikely to challenge him.

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