A company-ordered review into Richard White, the embattled billionaire founder of Australian software giant WiseTech, has cleared the former chief executive of bullying and intimidation allegations.
The law firms that reviewed a series of allegations against White, including alleged misuse of company funds, also concluded that their investigations had uncovered “no impropriety”, according to an update presented to shareholders on Friday.
The 69-year-old stood down last month after weeks of damaging revelations about his personal life, sparked by a dispute with a former lover erupting in the federal court.
Law firms Herbert Smith Freehills and Seyfarth Shaw examined five allegations.
These included claims that White failed to disclose several close personal workplace relationships to the board, the company entered into transactions with suppliers with whom he had personal relationships, and he had misused company funds.
One of the most damaging claims regarded allegations from a former female WiseTech director that White engaged in “bullying and intimidatory behaviours”.
The review found no evidence to support the five allegations and dismissed the bullying claims. It noted that White took a direct approach and was from occasionally involved in “robust and challenging” discussions.
This approach was generally consistent with the process of “creative abrasion”, in line with the company’s mantra “creative abrasion fuels collaboration”, the review found.
While White, who is the company’s single biggest shareholder, stepped down from the chief executive position last month, he has been appointed to a consulting role for a 10-year term, with the title “founder and founding CEO”. His $1m annual pay packet will remain unchanged.
On Friday, he acknowledged the impact of recent events on “family, friends, loved ones, the WiseTech team, and you, our shareholders” via a pre-recorded message played at the company’s annual general meeting.
“Whilst this time has been difficult and challenging, I want to assure you this has not diminished my passion and dedication to WiseTech,” he said.
Later in the meeting, White was asked about his relationship with the company’s board.
“All of you know I don’t have any problems in speaking strongly about what I think is right for the company, and you’ve always accepted that, and you’ve always pushed back reasonably when we’ve had those intellectual debates,” he said via video link.
Shares in the company sank on Friday after the company revised its revenue outlook, caused by delays in the launch of one of its software products. WiseTech blamed media attention around White and organisational changes for the slump.
Separately, WiseTech is defending a class action lawsuit being run by legal firm Phi Finney McDonald over allegations it released misleading earnings guidance in 2019. The lawsuit claims some investors are entitled to compensation because the guidance was later downgraded, resulting in a share price plunge.
