WiseTech shares have risen nearly 10 per cent this morning after the firm announced it would be replacing Richard White as executive chair.
In an ASX announcement on 7 July, the technology firm said White would remain on the board as an executive director but would step down as executive chair.
Instead, it has appointed Raelene Murphy -who joined the board in January and was promoted to lead independent director in May – as independent chair. The board’s priority, she said, will be driving long-term succession planning.
Aside from his board responsibilities as a director, White will remain as chief innovation officer where he will execute the firm’s future growth strategy.
Shares increased 9.7 per cent on the news, as of 12pm, although they are down 43 per cent since the start of the year versus gains of 1.1 per cent by the ASX 200 over the same period.
The move comes as White faces allegations regarding ASIC investigations related to “aggressive short-selling activity”. There is also a separate Australian Federal Police (AFP) investigation into White regarding human exploitation of a former employee.
White said: “Recent personal media attention is creating an unnecessary distraction from the strength of WiseTech’s business. At this time, the senior management team, Zubin [Appoo,chief executive] and I should be singularly focused on the execution of the company’s growth strategy.
“As I have stated previously, I strenuously and unequivocally deny the recent allegations in the media. Further, I am conscious that personal attacks on me in the media that are unconnected to the performance of the company nevertheless have the potential to encourage short selling activity.”
Murphy said: “Since my appointment as lead independent director, I have proactively engaged with shareholders and shared their strong feedback with Richard and the board. 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 with enormous potential to continue to grow stronger and thrive.”
