WiseTech Global Ltd (ASX: WTC) shares are rocketing on Friday morning.
At the time of writing, the logistics solutions company's shares are up a massive 22% to $121.33.
Image source: Getty Images
Why are WiseTech Global shares rocketing today?
Investors have been buying the company's shares this morning in response to the release of a big announcement after the market close on Thursday.
According to the release, the company's founder, CEO, and executive director, Richard White, is stepping down as its leader. This follows significant media coverage of White's private life this week.
The release reveals that the board has agreed, following White's request, that he will stand down as a director and as CEO with immediate effect and take a short period of leave.
Down but not out
This won't be the end of White's time at the company he founded and has led for 30 years.
WiseTech Global revealed that White will take a short period of leave and then return in a new full-time, long-term consulting role, focused on product and business development. He will have a title of founder and founding CEO and receive a salary of $1 million per year for at least the next 10 years.
The release stresses that White remains passionately committed to WiseTech Global and its future.
It highlights that "his clear desire is to concentrate fully on the product vision and business development initiatives for WiseTech as it continues its journey to be the operating system for global logistics."
'A challenging time'
Commenting on the development, White said:
It has been a challenging time for me personally, my family and close friends, and for the company that I have built and truly love. I want to assure all those who have supported WiseTech, as customers, colleagues, and shareholders, that I remain absolutely committed to seeing this incredible organisation continue to thrive and grow in the coming years.
The company's founder revealed that a succession plan has been discussed even prior to the scandal. He adds:
The Chair of WiseTech Richard Dammery and I have been discussing the evolution of the company and succession of the CEO role for many months. As WiseTech is a product led innovator, it follows that directing my passion, energy, and motivation, to creation of breakthrough product developments that solve the deep problems found in the complex world of Global Logistics is my highest and best use.
I strongly believe that now is the right time for me to make this transition and the Board agrees. This new role will allow me to focus on product and business growth, to create even greater value for shareholders and customers over the long term.
Despite their recent blip, WiseTech shares remain up 100% over the past 12 months.
