WiseTech and MinRes join the growing list of government layoffs

Billionaire Richard White’s personal controversies have finally begun to seep into the affairs of his company, WiseTech Global, with investors fearing the White Lothario’s behavior could force him to step back from running the $36 billion company .

That fear led to a multibillion-dollar plunge in WiseTech’s share price on Monday, and perversely, the collapse is a testament to how important White is to the company.

In terms of the market, there is no WiseTech without White. It’s the textbook definition of “key man risk,” which is likely to now put the tech company’s board under intense pressure to act.

The scandal engulfing White began a few weeks ago and initially involved an allegation in a Federal Court dispute that she expected business sex tips from a beauty entrepreneur and Real Housewives of Sydney contender, Linda Rogan.

The accusation was salacious but, in a corporate sense, it seemed containable. However, fresh allegations of inappropriate advances on LinkedIn published by Nine on Monday added a serial twist to the allegations about White, which had been set out in an affidavit by Rogan, who is seeking to have the proceedings removed of bankruptcy filed by White.

Ignoring new claims from other women, one of whom branded White a “LinkedIn Lecher,” is no longer an option for WiseTech’s board. It issued a statement on Monday saying it was reviewing the full range of matters described in the media and “taking external advice”.

Of course, the alleged scandal is personal in nature, but captains of industry must exercise judgment, especially if they are responsible for listed companies and are investing shareholders’ capital.

But how the board deals with White is quite a dilemma. As the founder and mastermind behind WiseTech, and its largest shareholder, White enjoys asymmetric power. Directors and shareholders may not approve of how he’s leading his personal life, but a prolonged decline in WiseTech’s stock price will hurt their pockets, and shareholders will hate it even more.

Until this scandal broke, WiseTech shareholders had been living the dream with the company’s stock price up 122 percent year-to-date. White has been hailed as an Australian technology success story, creating and leading the leading software provider for global logistics, a niche but critical cog in the global economy.