Richard White had been running WiseTech Global for three decades before his resignation as CEO on Thursday afternoon.
So he’s hardly recently been in “founder mode”.
Even if he still was, the “founder mode” idea that he is some kind of eccentric genius developing his product vision is no excuse for alleged inappropriate behaviour that has consequences extending far beyond a 20 per cent fall in the share price.
And yet the “founder mode” idea — a new Silicon Valley buzzword suggesting certain founders can essentially get away with anything on account of their tenacity and genius-ness — seems to be circling around explanations of White, and the numerous headlines that have emerged over the past few weeks regarding his conduct.
These stories include allegations that White bought multi-million dollar properties for women he had relationships with, including the transfer of a $7 million property to a WiseTech employee last year. White is also alleged to have approached several female entrepreneurs with offers of support on LinkedIn, only for such offers to then turn unprofessional and include crude and suggestive language. One accuser described White as the “LinkedIn Lecher”.
WiseTech Global was established in 1994, and listed on the ASX in 2016. Its founder and now former CEO is hardly in some kind of startup mode that’s lacking in management structure and support.
Even if product development was at an earlier, frantic stage for WiseTech, the “founder mode” is still no excuse for inappropriate behaviour, nor is it something investors and the board should overlook on account of the individual being so critical to the growth of the business.
Regardless of their size and growth status, companies still need a “manager mode” which includes the most senior managers setting the highest possible bar on standards that should be expected of everyone in the business. Unless the founder’s vision is to stay somehow stay in a box without interacting with anyone anywhere, then at some point — pretty early on — they need to leave “founder mode”.
Richard White has resigned as CEO but is not leaving the business. He’ll retain the $1 million salary he received in his former role to take on a “full-time, long-term consulting role”. He will also retain the title “founder” and “founding CEO” for at least the next ten years.
White said in the statement that he had been in discussions with the board chair about the succession of the CEO role for “many months”. He added that “as WiseTech is a product-led innovator, it follows that directing my passion, energy and motivation to the creation of breakthrough product developments that solve the deep problems found in the complex world of Global Logistics is my highest and best use.”
Whether it’s “CEO mode” or “Founder Mode” or “Contractor Mode”, there should be no free passes for inappropriate behaviour.