WiseTech Global (WTC.AX) announced on Monday that its board is investigating various issues related to CEO Richard White following media reports alleging inappropriate conduct and payments to a former partner. This news prompted a significant drop in the company’s shares, which fell by as much as 18%, marking their steepest decline since August 2023.
Reports from the Australian Financial Review and other outlets revealed that White, who is also the founder of WiseTech, faced allegations from a woman with whom he had a prior sexual relationship. The claims include inappropriate behavior and suggestive communications made by White in late 2020. White was not immediately available for comment, and WiseTech Global declined to provide further details.
As a result of the unfolding scandal, WiseTech’s shares plunged to A$100 before recovering slightly to a 12.8% decline. Tim Waterer, a market analyst at KCM Trade, noted that “the negative headlines and uncertainty regarding this situation have impacted WiseTech’s shares,” leaving investors concerned about White’s future role in the company.
The reports indicate that White, 69, had contacted several female entrepreneurs via text and social media, offering professional assistance that allegedly turned suggestive. Since the beginning of October, WiseTech shares have fallen over 11% amid ongoing revelations about White’s personal life.
In addition to the allegations, White has been selling off portions of his stake in the company. Between October 11 and 17, he sold 351,038 shares at an average price of A$131.22 each, according to a filing made on Friday.
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