Wisetech ex-CEO and founder Richard White decided to step down on secret affairs allegations.
Wisetech share price dropped 25% when the scandal broke before recovering 13% today after the resignation news.
Wisetech’s YTD return is still up 47%
CFO Caroline Pham will become the interim CEO.
The question now is will this change affect Wisetech’s dominant position in the logistics industry in particular international freight-forwarding?
CEO changes are not always smooth sailing. A few examples like Starbucks and Nike come to mind. And there is a high expectation built into the current share price that revenue can continue to grow above 20%+
Most analysts believe this change won’t have any consequential effect on the business. Richard White will continue to play a pivotal role in shaping the company’s direction through his new long-term consulting position.
One thing worth keeping a close eye on is the work culture. As Richard White wrote in Wisetech’s annual report “culture eats strategy for lunch”. Any changes to the established culture that drove their success could signal more underlying issues.
What is your thought?