Super fund HESTA places WiseTech on watchlist
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The news: HESTA has placed WiseTech Global on its watchlist due to concerns about the tech company’s governance, leadership and culture.
The context: The $91 billion superannuation fund said in a statement it was unsure of the logistics software company’s ability to make necessary changes to restore investor confidence.
It cited concerns related to the conduct and actions of the executive chair Richard White, the lack of independence of the WiseTech board, uncertainty regarding company leadership and succession, and news of the Australian Securities and Investments Commission’s preliminary enquiries.
WiseTech has had several tumultuous months resulting from personal drama surrounding White, including complaints from former employees and allegations from his former partner Linda Rogan, which led to the resignation of four board directors over the handling of White’s issues.
In April, the company announced that White had been appointed as “executive chair and chief innovation officer” and would be paid $1 million in a 10-year contract.
Companies on HESTA’s watchlist are the focus of closer direct engagement and monitoring. Other companies on its watchlist include Mineral Resources, Santos and Woodside.
What they said: “We believe the company has a critical and immediate opportunity to appoint highly skilled and genuinely independent directors, to demonstrate a sustained focus on succession, and provide comprehensive and transparent disclosure,” the super fund said.
“Taking these actions will begin to provide investors with confidence that WiseTech is taking appropriate action.”
The source: HESTA
