Shares in Australian company fall amid allegations of misconduct by billionaire CEO

SYDNEY – Shares in WiseTech Global fell Oct. 21 after the technology company’s board said it was reviewing media allegations against billionaire co-founder and chief executive Richard White of past inappropriate behavior.

The stock closed down 15 percent, its biggest drop in more than a year. The move reduced Mr White’s wealth by US$1.4 billion (S$1.84 billion) to US$8.3 billion, according to the Bloomberg Billionaires Index.

Mr White, 70, is WiseTech’s largest shareholder and has run the company since 1994, building it into a global supply chain powerhouse through a series of acquisitions.

Nine entertainment publications The Australian Financial Review, The Sydney Morning Herald and The Age reported on October 21 that Mr White paid millions of dollars to a former sex partner to settle allegations made in late 2020.

The newspapers reported that Mr. White provided a board subcommittee with a formal statement refuting the claims. The newspapers said they were not claiming that the allegations were true, only that they had been made.

Media reports have circulated in Australia over the past three weeks making various allegations about Mr White’s personal relationships with women, but a statement by WiseTech’s board on October 21 and the market reaction raises the stakes.

A company’s dominant shareholder—and the board’s governing bodies—now finds itself in the corporate spotlight for the first time.

“The Board is currently considering the full range of issues raised in today’s media reports and is actively seeking further information and taking external advice,” WiseTech directors said in a statement.

“He is aware of the potential impact on the company and will carefully consider all relevant factors in his assessment.”

The October 21 share crash reduced WiseTech’s market value by about A$6 billion (S$5.27 billion) to A$35 billion. The shares have soared since the initial public offering in 2016, turning Mr White into one of Australia’s richest men.

At the time of the allegations, only two current WiseTech directors were on the board, according to reports, and the company held a series of crisis meetings over the weekend, according to reports.

WiseTech is a key provider of software that coordinates deliveries around the world. The Australian company includes most of the world’s largest logistics providers and freight forwarders, including DHL, China’s Sinotrans, Japan’s Nippon Express and APL Logistics.

Reports on 21 October also claimed that leaked 2019 correspondence between WiseTech directors showed management concerns over Mr White’s decision to pay a former female executive A$2.7 million, double what he was earning as CEO without disclosing this to investors. BLOOMBERG