Richard White, the founder and CEO of Australian tech giant WiseTech, has stepped down from his leadership role as the company grapples with serious allegations surrounding his personal life. In a statement released Thursday, WiseTech’s board confirmed White will be leaving “with immediate effect” following weeks of troubling revelations that have negatively impacted the company’s image and stock value.
The board stated, “Following Mr. White’s request, it has been agreed that he will resign as a director and chief executive immediately, take a short leave, and transition to a new role within the company he founded in 1994.” Upon his return, White will take on a long-term consulting position focused on product and business development, earning an annual salary of $1 million.
White’s troubles began when a former partner accused him in federal court of seeking sexual favors in exchange for investments in her business. Linda Rogan alleged that during their relationship, White secretly purchased a mansion for her worth $13.1 million. The situation escalated, with Rogan claiming she was left responsible for costly furnishings amidst the fallout caused by White’s partner discovering their relationship.
In light of these allegations, an independent investigation has been initiated into specific claims raised in recent media reports. WiseTech’s chairman, Richard Dammery, acknowledged the challenges faced by the company and its employees due to the unfolding situation.
White’s departure signifies a dramatic shift for a man who has been synonymous with WiseTech for three decades, a company he boasted about building from the ground up in his basement. However, it appears his personal life has begun to overshadow his professional achievements, resulting in significant financial fallout, including a loss of billions from the company’s market capitalization and roughly $2 billion from his personally held assets.
White does not fit the typical mold of a tech entrepreneur. He resides in a luxury compound in Sydney’s Bexley, a working-class suburb where he grew up. His first job involved washing dishes in a family-run function center, and he even has a history of fixing guitars for famous bands like AC/DC.
The situation intensified when Rogan’s claims brought attention to White’s private relationships. After competition in the federal court, details about other past relationships surfaced, including another allegation that he bought a waterfront home for a WiseTech employee as a gift.
With an annual general meeting approaching, major shareholders are expressing concerns over succession planning and lingering effects of the allegations on the company’s share price. The Australian Securities and Investments Commission is also monitoring the situation closely.
WiseTech, known for its flagship product CargoWise One, has seen its stock price fall over 25% this month, a stark contrast to its impressive growth over the past year. White’s personal fortune, previously soaring to an estimated $10 billion, has taken a significant hit due to these scandals.
