WiseTech Global Ltd (ASX: WTC) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) logistics software solutions company closed yesterday trading for $84.86. In earlier trade, shares were up 2.4% at $86.90. After some likely profit-taking, shares are changing hands for $85.58 at the time of writing, up 0.9%.
For some context, the ASX 200 is up 0.3% at this same time.
This follows news of a new employment agreement with the company's founder and former CEO, Richard White.
Here's what's happening.
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WiseTech shares gain on White's new contract
As you may be aware, White came under intense, unwanted public scrutiny last year amid a number of allegations relating to inappropriate behaviours. White resigned his position as WiseTech CEO in 2024, but he vowed to remain on the board in a pivotal consulting role.
In February, WiseTech shares plummeted after four independent, non-executive directors relinquished their roles on the board in protest over White's ongoing role.
Today, the ASX 200 tech company is hoping to relegate all of this to the history books, revealing the key terms of the employment agreement entered into with White, as well as progress in the search for a new CEO.
WiseTech reported that White will be supported by the chief of staff and deputy chief innovation officer in his newly created role as executive chair and chief innovation officer.
According to the release, the newly created role is "designed to facilitate more effective delegation and reporting pathways that will materially assist the execution of WiseTech's product development roadmap and growth opportunities over the medium term".
White's new agreement runs for a 10-year term with the option to extend for a further five years by mutual agreement. He'll receive $1 million a year for his efforts, the same remuneration he's received since 2015.
White said that neither he nor his associated entities intend to trade WiseTech shares until at least after the company's FY 2025 full-year results are released in August.
Commenting on the new employment agreement, White said, "My return to employment at WiseTech as executive chair and chief innovation officer reflects my long-term commitment to continuing WiseTech's track record of delivering strong shareholder returns."
White added:
I am focused on implementing WiseTech's product-led innovation strategy and ensuring we have a strong succession plan in place to maintain our growth momentum. I am confident of WiseTech's future growth prospects, our ability to execute our strategy and the strength of our high calibre senior leadership team
What about the new CEO?
Also potentially offering some tailwinds for WiseTech shares today, the company said it has progressed in its search for a permanent new CEO.
WiseTech noted, "Several strong internal and external candidates have been identified for the role."
The company aims to announce the new CEO before its AGM in November. Interim CEO Andrew Cartledge said he could stay on beyond his planned retirement date at the end of 2025 if required "to enable an orderly and seamless handover and transition".
