WiseTech Global Ltd (ASX: WTC) shares have recovered sharply in recent weeks after an initial sell-off that began in early October.
Investors unloaded the stock following a string of accusations and headlines regarding founder and now former CEO Richard White.
Shares have opened more than 2% in the green on Monday despite no price-sensitive updates from the company itself.
But the logistics solutions company has again found headlines today, after its decision to hold its upcoming AGM exclusively online sparked backlash from the Australian Shareholders' Association (ASA). Let's see.
Image source: Getty Images
WiseTech shares in focus once again
WiseTech shares are again in the spotlight after its move to host its AGM virtually, with no physical attendance required.
The ASA has criticised the move as "arrogant", challenging WiseTech's view that it provides a more "global, scalable and effective way of communicating".
Adding fuel to the fire, the ASA is also recommending that shareholders vote against WiseTech's remuneration report and share rights for executive director Maree Isaacs, citing concerns about transparency and governance.
It directly called out WiseTech's executive remuneration structure, likening it more to a startup than an ASX 200-listed company.
With no real remuneration structure that builds in future planning and behaviours culture, we consider that despite a lot of good, the bad outweighs it and we will vote against the remuneration report.
The ASA also suggests that virtual-only meetings limit shareholders' ability to engage directly with management.
Because the AGM is held as a virtual only meeting, you as a shareholder will not be able to physically face the Board and Mr. White, look them in the eye when they speak or answer questions. We feel the Company's opting for a virtual meeting is somewhat arrogant.
We are surprised that the respond to the current problems by finding a venue to move to a hybrid meeting, but will instead continue with a virtual only meeting.
What's behind the recent volatility?
Compounding these governance concerns, recent controversies around founder and former CEO Richard White have also kept WiseTech shares in the spotlight.
White recently stepped down from his role following media attention on his private life and share sales worth around $100 million. The stock rallied 22% in one day.
Despite the recent headwinds, analysts remain bullish on WiseTech shares. Consensus ratings have it as a buy, according to CommSec data.
Goldman Sachs also upgraded WiseTech to a buy rating with a price target of $138.00 in a recent note, arguing that the market's reaction to recent news may be overly cautious.
The broker says that growing demand for WiseTech's CargoWise platform could drive sustained revenue growth moving forward.
Foolish takeout
WiseTech shares are in the spotlight again as its AGM approaches. Despite governance and reputational challenges, its long-term growth potential in the logistics software space remains strong.
