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WTC - WiseTech Global

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WTC took a bit of a hit last week.

Richard White is doing some more selling, but he has done that many times before. He still holds around 38% of the company.

He is involved in a court battle at present over a private matter and that has had some press coverage in Sydney over the last few weeks. It has nothing to do with WTC, but I wonder if it may be having a bearing on the share price?
@debtfree
1729299441063.png
 
Richard White's personal matters hit the front page of the SMH today and that certainly put the boot into the WTC share price. Down nearly 15% for the day.

The board has issued an announcement saying that they are reviewing and monitoring things.
 
Market Matters afternoon report:

Explaining the cloud over founder and CEO Richard White and its effect on the share price of WTC .
The report this afternoon also contained a gossipy account of the flak that Chris Ellison is getting over historical tax shenanigans at Mineral Resources

Not Held

WiseTech Global (WTC) $104.65
WTC –14.56%: Was slammed today after the company acknowledged recent media reports and announced it was looking into allegations of misconduct by founder and CEO Richard White. The stock has seen a swift fall from grace over the past few weeks, diving 28% from its highs – trading as high as $139 in early October, down as low as $100.02 today before popping and closing at $104.65.
Media reporting of the saga has seen several twists and turns over the past month, seemingly chipping away at the share price week by week. The latest relate to allegations company funds were used by the CEO to pay for a property and other lifestyle items for a former mistress. Questions are also being raised around excessive pay for a former female executive of the company, which was not disclosed to shareholders at the time.
The market looks to be pricing in a high chance we’ll see more allegations (probably likely) and the potential for a change of management i.e Richard White stepping down. Losing White at the helm would be a loss from a business perspective, though the allegations keep surfacing from multiple parties with these sorts of allegations from these sorts of people generally spread far and wide. While the CEO has incredible influence at WTC, and a substantial 38% shareholding in the business, our guess is there is more to come out about this.
  • While the fundamentals of the company have not necessarily changed, and we liked the August result discussed here, given the unknowns relating to the CEO, we’d prefer to let this one play out from the sidelines.
WTC​
MM remains neutral towards WTC
 
finicky said:
Explaining the cloud over founder and CEO Richard White and its effect on the share price of WTC .
The report this afternoon also contained a gossipy account of the flak that Chris Ellison is getting over historical tax shenanigans at Mineral Resources

Not Held

WiseTech Global (WTC) $104.65
The latest relate to allegations company funds were used by the CEO to pay for a property and other lifestyle items for a former mistress. Questions are also being raised around excessive pay for a former female executive of the company, which was not disclosed to shareholders at the time.
The market looks to be pricing in a high chance we’ll see more allegations (probably likely) and the potential for a change of management i.e Richard White stepping down.
WTC​
MM remains neutral towards WTC
Click to expand...
WiseTech Global (WTC) $104.65
WTC –14.56%: Was slammed today after the company acknowledged recent media reports and announced it was looking into allegations of misconduct by founder and CEO Richard White. The stock has seen a swift fall from grace over the past few weeks, diving 28% from its highs – trading as high as $139 in early October, down as low as $100.02 today before popping and closing at $104.65.
Media reporting of the saga has seen several twists and turns over the past month, seemingly chipping away at the share price week by week. The latest relate to allegations company funds were used by the CEO to pay for a property and other lifestyle items for a former mistress. Questions are also being raised around excessive pay for a former female executive of the company, which was not disclosed to shareholders at the time.
The market looks to be pricing in a high chance we’ll see more allegations (probably likely) and the potential for a change of management i.e Richard White stepping down. Losing White at the helm would be a loss from a business perspective, though the allegations keep surfacing from multiple parties with these sorts of allegations from these sorts of people generally spread far and wide. While the CEO has incredible influence at WTC, and a substantial 38% shareholding in the business, our guess is there is more to come out about this.
  • While the fundamentals of the company have not necessarily changed, and we liked the August result discussed here, given the unknowns relating to the CEO, we’d prefer to let this one play out from the sidelines.
I fail to see what all the kerfuffle is about. I mean this bloke White has given value and good service to shareholders and workers at this company. OK he has a lady friend who probably suffers from said service by not seeing him as often as she would like. From the sounds of it it would appear that he may have felt the same way. So anyways he buys her some property and "lifestyle items".

I will not go in to what these "lifestyle items" might be because I have principles.

So taking natural justice in to account I do not see how all of this should affect the sp of WTC.

gg
 
Dona Ferentes said:
apart from proxies / ESG / etc forcing gardening leave for this singular architect of the company's future.
Click to expand...
We need more mongrel in corporate life in Australia. A fine and a rap would be good, but standing him down would be silly.

White has made it a very profitable company. If the hairy legged lassies and small balled men aka proxies and ESG's do force him in to gardening leave I'll be on my knees praying for a fall in the sp as I missed WTC's rise first time about.

gg
 
Garpal Gumnut said:
So anyways he buys her some property and "lifestyle items".
Click to expand...
Huh? Am I missing a joke?
There are apparently allegations that he misused company money for the girly pressies.
And the allegation of overpaying a female exec with company funds but not disclosing it adds to questions of fiduciary conduct.
And there's the background of selling shares.
 
What publication was the "media report" in today that is being quoted when I do a duck duck search on White's governance improprieties?

gg
 
Selling shares when there might have already been rumblings?
Taken by itself it would be just another high level executive selling shares with exactly the same access to knowledge of the company as anyone else /sarc
 
My apologies @finicky . I hadn't realised the allegations were so serious and of long standing. From Yahoo Finance.

au.finance.yahoo.com

WiseTech Sinks on Claims of Billionaire CEO’s Inappropriate Behavior

(Bloomberg) -- WiseTech Global Ltd. shares plunged in Sydney after the tech company’s board said it’s reviewing media allegations against billionaire co-founder and Chief Executive Officer Richard White of historical inappropriate behavior.Most Read from BloombergA Broken Oil Pipeline Plunges...
au.finance.yahoo.com au.finance.yahoo.com

gg
 
Market Matters morning report
Discussion is also made on Chris Ellisons's position at MIN
Not Held

Wisetech Global Ltd (WTC) $106.07
This cloud-based logistics software business has been a standout performer over recent years, and they have clearly executed well, but the big issue for MM comes to valuation as the Richard White scandal deepens by the day. While some of the personal allegations being made are scathing, there has clearly been a questionable board that may not have fulfilled its duty of applying checks and balances. While it’s understandable that the founder, CEO and major shareholder has significant influence, it seems clear the board has allowed White too much free rein.
  • While White will have some of the best legal minds in his corner, this is going to be a difficult position to come back from, in MM’s view.
When companies are executing well as WTC has, valuations continue to grow – the market is simply happy to back growth at any price i.e. the concept of being priced for perfection. When something from left field hits a company on such a significant valuation, the moves can be significant, simply based on a re-rate lower of the earnings multiple, irrespective of the actual earnings impact.
WTC’s products are very engrained in the logistics supply chain, and that means we’re not likely to see a near term earnings impact, however, the stock is priced for the future and we think these scandals and the incredible pressure now focussed on the board of WTC will continue to gain attention and will ultimately have an impact on the markets view of future earnings.
  • We believe the CEO’s position is tenuous as new details/claims emerge.
This creates a risk given there is no one who knows this aggregation of technology products like White. It’s a complicated business, built through acquisition, and it seems like the board has engaged in more of a spectator type role.
  • Ultimately, we think WTC above $100 is expensive considering the current uncertainty.
 
Richard White has stepped down as CEO and a director. Expect more losses from WTC tomorrow.

The question is, how strong is WTC without White?

Hopefully there are plenty of others within the company who can step up and see it continue its success. Time will tell.
 

WiseTech founder Richard White has stood down as CEO and director​

After weeks of embarrassing headlines, billionaire Richard White has stood down from key roles of the major tech company he founded.​


Billionaire WiseTech Richard White has stood down as chief executive and executive director of the tech company he founded after weeks of sensational headlines about his personal life.
In a statement to the ASX, the board of WiseTech White will stand down immediately and take “a short period” of personal leave before taking on a new advisory role in the company he founded 30 years ago.

The announcement follows media reports about his interactions with women and a lawsuit with a former lover, that has been settled. He has denied allegations of any improper behaviour.

Mr White refused to comment when approached by The Australian after the announcement.

“I has been a challenging time for me personally, my family and close friends, and for the company that I have built and truly love,” Mr White said in the statement.

“I want to assure all those who have supported WiseTech as customers, colleagues and shareholder that I remain absolutely committed to seeing this incredible organisation continue to thrive and grow in the coming years.”

The statement said Mr White remained “passionately committed to WiseTech and its future”.

“His clear desire is to concentrate fully on the product vision and business development initiatives for WiseTech as it continues its journey to be the operating system for global logistics,” it said.

Mr White said he had been discussing “the evolution of the company and succession of the CEO role for many months” with WiseTech chair Richard Dammery.

“As WiseTech is a product led innovator, it follows that directing my passion, energy, and motivation, to creation of breakthrough product developments that solve the deep problems found in the complex world of global logistics is my highest and best use,” Mr White said.




e27191e99866bb7dd915d000adc39a88.jpg

Richard White and his new wife, lawyer Zena Nasser. Picture: Supplied

“I want to assure all those who have supported WiseTech as customers, colleagues and shareholder that I remain absolutely committed to seeing this incredible organisation continue to thrive and grow in the coming years.”

The statement said Mr White remained “passionately committed to WiseTech and its future”.

“His clear desire is to concentrate fully on the product vision and business development initiatives for WiseTech as it continues its journey to be the operating system for global logistics,” it said.

Mr White said he had been discussing “the evolution of the company and succession of the CEO role for many months” with WiseTech chair Richard Dammery.


“As WiseTech is a product led innovator, it follows that directing my passion, energy, and motivation, to creation of breakthrough product developments that solve the deep problems found in the complex world of global logistics is my highest and best use,” Mr White said.

80dc511554bea6c66d28cbef258c7f8e.jpg

Richard White, founder of WiseTech Global, has stood down after weeks after headlines about his personal life. Picture: Supplied

“I strongly believe that now is the right time for me to make this transition and the board agrees.

“This new role will allow me to focus on product and business growth, to create even greater value for shareholders and customers over the long term.”

Mr Dammery praised Mr White for “putting the company first”.

“Richard is a true giant of the Australian technology industry and he has built one of our most remarkable corporate success stories,” Mr Dammery said.

“By proposing this change in role, Richard has put the company and its shareholders first.”

Mr White will take part in WiseTech Global’s annual general meeting on November, 22 and the investor day on December 3.

Chief financial officer Andrew Cartledge will act as interim chief executive.

WiseTech’s shares fallen significantly following allegations about Mr White’s personal life.

They closed at $99.37, down $6.70 – or 6.32 per cent – on Thursday.

Mr White previously resigned from the Tech Council of Australia Board – a position he has held since June.

 
Last edited:
^^^

I like the spin that the Richard has been thinking about 'transitioning' for ages and has finally taken the step with reluctant board approval so that he can focus upon creating ideas for the business. Nothing about the women.

It seems a strange fact of nature that powerful and provenly 'intelligent' men so frequently fall into the snares of women. Maybe it's because it is all a lot of women think of. Maybe it's because such men develop narcissistic egos that pardoxically make them vulnerable to women. Like they need adoration or something. It can also be lonely at the top and such men I'd opine are insufferable to other men.
 
finicky said:
^^^

I like the spin that the Richard has been thinking about 'transitioning' for ages and has finally taken the step with reluctant board approval so that he can focus upon creating ideas for the business. Nothing about the women.

It seems a strange fact of nature that powerful and provenly 'intelligent' men so frequently fall into the snares of women. Maybe it's because it is all a lot of women think of. Maybe it's because such men develop narcissistic egos that pardoxically make them vulnerable to women. Like they need adoration or something. It can also be lonely at the top and such men I'd opine are insufferable to other men.
Click to expand...
I believe it is all due to money, power and sex. Unremarkable men who become powerful and rich suddenly become attractive to alpha women. The men have power and money which is traditionally used to have sex with attractive women. Nothing remarkable there until the lawyers become involved when passion cools on one side or the other.

gg
 
Ferret said:
WTC took a bit of a hit last week.

Richard White is doing some more selling, but he has done that many times before. He still holds around 38% of the company.

He is involved in a court battle at present over a private matter and that has had some press coverage in Sydney over the last few weeks. It has nothing to do with WTC, but I wonder if it may be having a bearing on the share price?
@debtfree
View attachment 186139
Click to expand...
Richard sensed the trouble and reflecting to his resignation and prices of stock. Poor fellow. Could have gone to Vegas instead and saved everything
 
Garpal Gumnut said:
I believe it is all due to money, power and sex. Unremarkable men who become powerful and rich suddenly become attractive to alpha women. The men have power and money which is traditionally used to have sex with attractive women. Nothing remarkable there until the lawyers become involved when passion cools on one side or the other.

gg
Click to expand...
Yes. look at those famous divorces - Amazon CEO, FMG CEO, Microsoft then CEO -

Wealth Wine and Women are three dangerous items in life
 

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