AustralianSuper pulls $367 million from WiseTech over governance issues

In Australia, AustralianSuper, the nation's largest pension fund, made a significant divestment of A$580 million (approximately $367 million) worth of shares in WiseTech Global in recent weeks. This decision came in response to escalating concerns related to the corporate governance of WiseTech, particularly after the company appointed its founder, Richard White, as executive chairman. White's return to power occurred just months after he resigned as CEO following various damaging media reports about allegations of inappropriate behavior towards former partners. The board's decision not to take action against him raised alarms among investors, including AustralianSuper, prompting them to reevaluate their stake in the company. Additionally, the appointment of White indicated a potential shift in governance that many stakeholders found concerning. As of last month, AustralianSuper reduced its shareholding from 2.3% to 1.9% in the wake of these revelations. Shaun Manuell, the head of Australian equities at the fund, stated that the recent developments had not aligned with their expectations. He further mentioned the necessity for a sensible transition strategy that would maintain an appropriate balance between governance and the founder's role at WiseTech. The company's stock has declined nearly 30% since White’s reinstatement, affecting his net worth significantly, indicating investor unease over the direction in which the company is headed.