WiseTech shares surged 8.1% on Tuesday, adding nearly $1 billion to the company's market value, after Richard White resigned as executive chair amid a police investigation into allegations he exploited a worker's financial and visa status for sex. White, who co-founded the Australian tech company, will remain on the board as a director and continue as chief innovation officer, with Raelene Murphy stepping in as chair, the company announced.
Background of the Allegations
In June, the Nine newspapers reported that police were investigating claims White coerced a cleaner into a sexual relationship and provided false information for her visa application. In a statement on Tuesday, White denied the allegations, saying, 'I strenuously and unequivocally deny the recent allegations in the media.' He added that the 'recent personal media attention is creating an unnecessary distraction from the strength of WiseTech’s business.'
Market Impact and Governance Changes
The announcement provided a much-needed refresh for the embattled software company, which had seen its value collapse from over $40 billion in July 2025 to less than $13 billion before Tuesday's rally. Investors had sold off shares after the allegations surfaced. White stepped down as CEO in 2024 following weeks of damaging revelations about his personal life, but returned as executive chair in February 2025 after four board members resigned over disagreements about his role. The gradual replacement of those directors led to Murphy's appointment to the board in January.
Support from New Chair and Analyst Views
Murphy defended White in the company statement, saying, 'My personal experience working with Richard is totally at odds with media reports. I have found him to be an incredibly hardworking, focused and committed founder who has built a leading global technology business.' She noted the board wanted to retain White's 'depth of experience' but would focus on succession planning. RBC Capital Markets analyst Jackson Lee said White's step down was 'another step in the right direction,' but added that 'the market will likely want to see ongoing evidence that the refreshed board, CEO, and chief innovation officer operate independently.'
Company Challenges and Future Outlook
WiseTech, a software-as-a-service company, has faced pressure from AI and began laying off 30% of its workforce in May. While the AI boom has hurt its market value, scrutiny of White has added to investor concerns. White said he would focus on WiseTech's growth strategy as chief innovation officer. The company's statement highlighted 'strong leadership' from CEO Zubin Appoo in succession planning.
