WiseTech Global (WIGBY), an Australian software maker that automates the global logistics industry, saw its shares rise as much as 11% in Sydney after billionaire founder Richard White stepped down as chair. Investors appeared to welcome the decision as a possible step toward easing the company's latest governance crisis, which had previously contributed to around A$37 billion, or $26 billion, being wiped from WiseTech's market value.
White, WiseTech's largest shareholder, denied the recent media allegations and said personal coverage around him had become an unnecessary distraction from the strength of the company's business. He will remain on the board as an executive director and continue as chief innovation officer, meaning investors may still watch how much influence he retains after Raelene Murphy, who joined the board on Jan. 1, takes over as chair immediately.
The move follows renewed investor pressure after reports that White was being investigated by police over claims involving a woman's immigration status, which he has denied. RBC Capital Markets analyst Jackson Lee described Murphy's elevation to independent chair as a step in the right direction, while noting that the market may still need evidence that the refreshed board, CEO, and chief innovation officer can operate independently before assigning any meaningful re-rating.