Two senior executives at WiseTech Global are under investigation by the Australian corporate regulator following share trades closely linked to the company’s executive chairman. The inquiry aims to uphold transparency in executive dealings, though it has raised doubts about governance standards within the $24.3 billion logistics technology firm.
Officials from the Australian Securities and Investments Commission (ASIC) recently searched the company’s Sydney headquarters, obtaining documents related to trades that allegedly occurred between late 2023 and early 2024. These transactions involved billionaire chairman Richard White and three WiseTech employees connected to the company’s $3.2 billion acquisition of the supply chain platform e2open. No charges have been filed, but the investigation comes as the firm contends with leadership unrest.
Those reportedly under scrutiny include WiseTech’s head of acquisitions, the managing director of an acquired digital freight firm and a senior software manager. Market analysts have raised concerns that the investigation may hinder executive focus on important developments, especially the integration of e2open which remains central to WiseTech’s growth strategy. Shares have dropped significantly, falling from over $130 in September to approximately $72.22.
Leadership at WiseTech has faced increased criticism following repeated controversies involving Richard White and major board changes. An earlier independent investigation revealed that White had failed to fully disclose details during a prior internal review involving a relationship with an employee. Despite these governance concerns, White returned as executive chairman, which led to the resignation of three independent directors.
Investor pressure is mounting, with calls for stronger leadership stability and renewed attention on operational goals. During the period under investigation, White sold more than 1.8 million shares, raising about $229 million. Although he sought legal advice beforehand, his recent share sales have further unsettled investor sentiment.
The timing of the regulatory focus is especially challenging. WiseTech must manage both the fallout from the investigation and the complex task of integrating its largest acquisition. While some analysts believe the stock is undervalued, continued uncertainty due to the probe and insider selling continues to cloud the company’s outlook.
