WiseTech Global founder Richard White has stepped down as chairman of the logistics software company, with independent director Raelene Murphy taking over the role as the group moves to address governance concerns and media scrutiny around its billionaire founder.
The company told the ASX that Murphy, who joined the board in January and became lead independent director in May, had been appointed independent chair with immediate effect.
White will remain on the board as an executive director and continue as chief innovation officer.
Shares were 6.11% higher at 3pm, with the company trading at $37.53 at the time of writing.
Founder says scrutiny has become a distraction
White said recent media attention around his personal life was creating an “unnecessary distraction” from WiseTech’s business performance.
“As I have stated previously, I strenuously and unequivocally deny the recent allegations in the media,” White said.
He added that personal attacks unrelated to company performance had the potential to encourage short-selling activity.
The leadership change comes after WiseTech shares lost about two-thirds of their value over the past year, although the stock rose 8.9% to $38.50 by midday following Tuesday’s announcement, adding about $1.2 billion to the company’s market value.
Murphy takes independent chair role
Murphy said her experience working with White was “totally at odds with media reports” and described him as a hardworking and committed founder.
She said long-term succession planning was now a priority for the board, while the company retained White’s product and technology experience through his chief innovation officer role.
RBC Capital Markets, which rates WiseTech “outperform” with a $70 price target, described Murphy’s appointment as another step toward addressing governance concerns.
However, analysts said investors would want further evidence that the refreshed board, chief executive and chief innovation officer were operating independently before the shares could meaningfully re-rate.