WiseTech Global Under Scrutiny: Governance Crisis Deepens Amid ASIC Investigation

About WiseTech Global Limited

WiseTech Global Ltd (ASX: WTC) is Australia’s largest publicly listed software company, providing cloud-based logistics solutions through its flagship product, CargoWise. The platform supports end-to-end supply chain operations for over 17,000 logistics providers across more than 160 countries. With operations in 38 countries and a workforce of approximately 3,500, WiseTech enables freight forwarders, customs brokers, and third-party logistics providers to manage their workflows from origin to destination. WiseTech’s vertically integrated software ecosystem is a critical infrastructure for global trade, covering customs, warehousing, transportation, and compliance. The company is supported by recurring revenues, international expansion, and a tech-led growth model in the increasingly digitised logistics sector.

Leadership Turmoil and Regulatory Escalation

WiseTech Global is grappling with a governance storm following a string of high-profile resignations, personal legal battles involving its founder Richard White, and a now-formal investigation by the Australian Securities and Investments Commission (ASIC). Once praised as a model of homegrown tech success through its flagship CargoWise platform, WiseTech now finds itself at the centre of a complex corporate governance crisis that has wiped billions from its market value and shaken investor confidence.

The drama, unfolding over several months, has seen four independent directors resign including the company’s chair citing irreconcilable differences regarding White’s ongoing role. The departure of these board members, combined with fresh scrutiny from ASIC, places pressure on WiseTech to rebuild credibility, both internally and in the eyes of investors.

Richard White, who co-founded WiseTech in 1994 and led the company as CEO for nearly 30 years, stepped down from his executive role in October 2024 after a series of damaging media reports brought his personal life into the public spotlight. Among the allegations were claims of a $2 million legal settlement with a former partner and accusations of bullying from a former director, claims that White has denied. Despite his resignation as CEO and board member, White retained a full-time role as “founder and founding CEO” and remained the largest shareholder, holding close to 40% of the company.

In a move that caught the market off guard, WiseTech announced in April 2025 that White would be returning as Executive Chairman. This appointment intensified concerns about corporate governance, given his dual role in managing operations and leading the board, despite ongoing regulatory scrutiny.

ASIC has since escalated its inquiry from preliminary inquiries to a formal investigation. The regulator is probing both White’s share trading activity and the company’s market disclosures, raising concerns about transparency, internal oversight, and the adequacy of existing governance frameworks within Australia’s corporate landscape.

To mitigate these concerns, WiseTech reappointed Mike Gregg, a former long-serving director, to the board and confirmed plans to recruit more independent directors to comply with ASX governance guidelines, which recommend at least three independent board members and an independent chair.

Investor Outlook: Cautious Optimism Amid Uncertainty

The market’s reaction to the unfolding crisis has been volatile. WiseTech’s share price fell approximately 20% following the mass board resignations in April, shedding billions in market capitalisation in a single trading day. Although the stock partially rebounded after the company posted a 38% increase in net profit to $168 million for the first half of FY25, investor sentiment remains cautious.

Institutional investors are now closely monitoring WiseTech’s next steps, particularly the outcome of the internal governance reviews being conducted by law firm Seyfarth Shaw. The company has pledged to provide an update by mid-to-late March 2025, a moment that will be pivotal in determining whether it can begin to repair its tarnished reputation.

Adding to the uncertainty is WiseTech’s continued search for a permanent CEO, a process now led by White himself. The duality of White’s position in holding significant operational influence while the company is under investigation remains a flashpoint for investors and governance experts alike. Concerns have been raised that the boardroom breakdown has exposed structural weaknesses in WiseTech’s governance model, particularly in managing founder led companies transitioning to mature public corporations.

Despite the turbulence, some market participants remain strong about WiseTech’s core business fundamentals. CargoWise continues to perform strongly, servicing over 17,000 logistics providers across more than 160 countries. With recurring revenue, scalable architecture, and growing demand for supply chain digitisation, WiseTech’s product-led growth strategy still holds long-term promise.

Rebuilding Trust in a Founder-Led Giant

The broader implications of the WiseTech scandal extend beyond its immediate financials. It has triggered a debate within Australia’s corporate governance community about the challenges of founder influence in public companies and the responsibilities of boards to act decisively when personal matters risk undermining corporate integrity.

WiseTech’s commitment to appointing new independent directors and increasing board oversight may help restore some market confidence. However, the lingering presence of Richard White in a key leadership role complicates efforts to draw a clear line between past controversies and future direction.

For investors and regulators alike, the key question is whether WiseTech can evolve from a founder-centric model into a transparent, institutionally governed tech leader. The company’s response in the coming months particularly its cooperation with ASIC, commitment to governance reform, and the quality of its leadership appointments will ultimately determine whether it can sustain its global success or become a cautionary tale in corporate Australia.