Billionaire SaaS CEO loses title after week of sleaze allegations
Not much more than a slap on the wrist as WiseTech boss stays on in new role and keeps salary
The billionaire founder and CEO of Australian SaaS giant WiseTech Global, Richard White, has stepped down after a week of allegations of improper conduct.
WiseTech provides the Cargowise logistics software and since its founding in 1994 has grown to AU$1 billion ($660 million) revenue, almost 3,500 employees, boasts of licence-holders in 183 countries, and market capitalization of AU$38 billion ($25 billion).
That makes it one of Australia's bigger tech success stories, and has made White a respected figure. In June he was hailed as an "exceptional leader" when he joined the board of the Tech Council of Australia – the nation's peak tech industry body. White served alongside the likes of Atlassian co-founder Scott Farquhar and Tesla chair Robyn Denholm.
But White left the Council's board, and his leadership position at WiseTech, after a week of reports in local press that alleged he had intimate relationships with employees, expected sex from a woman in whose business he planned to invest, and made lewd approaches to other women online.
As those allegations emerged, WiseTech's share price dipped by almost thirty percent.
On Thursday, WiseTech posted a "Key Business Update" that revealed White made a request to step down and the board agreed.
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That doesn't mean he's unemployed though. He will remain closely involved with WiseTech in "a new full-time, long-term consulting role, focused on product and business development." And he'll keep his huge stake in the company, which makes him a billionaire several times over.
White spun the move as evolution that was about to happen anyway.
"The chair of WiseTech Richard Dammery and I have been discussing the evolution of the company and succession of the CEO role for many months," reads a quote in the statement announcing White's move. "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. I strongly believe that now is the right time for me to make this transition and the Board agrees."
White added that the 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." As well as his shares, he'll also retain his million-dollar-per-year salary.
WiseTech's update makes scant mention of the circumstances leading up to the change, beyond a note that "enquiries into the specific issues raised in recent media coverage remain ongoing."
The CEO's new gig has not gone down well, as in Australia as elsewhere women are often reluctant to work in the male-dominated world of tech. Commentators and media are pondering just how badly founders must behave before being ejected or severely sanctioned, and what this means for tech workplaces in Australia. Consensus is White's ongoing role at WiseTech sets a poor precedent. ®