Braid consistently delivers for shareholders and stakeholders alike. Zac: Don, if you owned your own SME business at the moment, what would you be focusing on going forward to be as successful as you could be under this environment? To join your company account for BusinessDesk and enjoy full access, Filed Under: Blog, Business coaching, Motivation coming at ya, What a great interview and there are many excellent points which the Mainfreight CEO covered like Empathy which is essential when supporting all those involved in Mainfreights success and another dealt with the importance of making sure all invoices are paid on time. [10] In August 2013, Mainfreight and the family of Wim Bosman reached an out of court agreement for compensation to the tune of 8.2 million or $14 million. Biography I dont see this as a job, so therefore the stress levels arent as strong. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. don@mainfreight.com; Profile. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. I could not get out of the car and go and meet a stranger to ask for the business and now I actually prefer to do that! Click on [Agree] or [Disagree] to accept or refuse cookies. The relationships we develop, both with suppliers and with customers, are there for the long term. Don from Mainfreight talks to Fisher Funds. For us its about pushing the decision-making as close to the customer as possible, getting those people to make decisions rather than pushing them upstairs for someone else to make. Don has led the Mainfreight team through a significant period of change and expansion to become the successful global supply chain logistics provider it is today, with businesses operating in over 214 branches throughout New Zealand, Australia, Europe, Asia and the United States. The firm's shares have been one of the best performing stocks on the NZX, returning more than 20 per cent in the year to date. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. Copyright 2023 Institute of Directors You cant see yourself as an employer of 8500 people. Component 2020 Sam Knowles Check out our latest analysis for Mainfreight. In his results commentary, Braid said the results were pleasing in light of initial supply chain disruptions during the early part of the year, on the back of lockdowns in response to the global pandemic. What have we got right? What do those customers look for from us? Email. Rob Fyfe Chief executive, Kiwibank Educated at Timaru Boys High School, Braid has been described as possibly the most self-effacing leader of major listed company in New Zealand and is widely regarded as straight-talking and strong leader. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. But well and behold, were in the perfect position not a lot of debt, trading really well, coming off a really good financial year the year before. I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. Don Braid has been with freight and logistics company Mainfreight since 1994, after joining the firm as part of the acquisition of Daily Freightways (where he had been for 16 years). Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. Group Managing Director at Mainfreight NZ . How do you maintain a positive culture and a time of crisis? Those people become good leaders early in the piece they might be only leading a couple of people by the time they make branch manager status but they understand the roles of leadership within Mainfreight. Don: With this decentralized approach, those P&Ls were talking about, theyre part of everyday life at Mainfreight those P&Ls go up on the cafeteria wall. In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. And he should know, having spent his entire working life in the freight industry. He has an enviable track record of integrity and professionalism and wide ranging business experience. Thanks Mr Braid for sharing your knowledge and insight. Appointment to Board 2000 - With Mainfreight since 1994. Experts say community investment is the future. At Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. After the full acquisition that took place August 2007, Mainfreight Asia quickly gained momentum in the Air and Ocean sector, driving business in China and Southeast Asia. Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . Wishing you the best in England and when you return to NZ. I think with a driverless truck, well lose that ability of interaction with the customer on pickup or on delivery. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for our customers. In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. But they had different regulations for different countries: it was a metre between the two trucks, it was a metre and half in Belgium, and it was two meters in France. "We need to try and paint the picture around Mainfreight here and what Mainfreight is, that to me is of more interest than whether I like rugby or cricket. He previously worked for the Otago Daily Times, after a return to business journalism in 2018. So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? Target operate domestic and international time-sensitive freight-forwarding and logistics services through its wholly owned subsidiary, Target Logistic Services. I dont believe that. In addition, we use tracking cookies, which can collect information about you and follow your internet activity within our website, and possibly outside our website as well. Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. Braid, who joined Mainfreight through its purchase of Daily Freightways, says the company hasn't let the last few years of economic upheaval dull its ambitions. Her knowledge of high-tech companies is a welcome addition to the Boards capabilities, as is her familiarity with the complexities of acquisitions, and steering companies through growth and change. As an example, we know what money weve made or lost last week in every single one of those 282 branches as of about half an hour ago. It is our strong belief that the momentum we have will continue, and will develop at a faster pace than we have experienced in the past, thanks to our people, our network and our culture. In 1994 Mainfreight purchased the business, and Don went on to hold various senior management roles at Mainfreight prior to his appointment as Managing Director in 2000. Mainfreight managing director Don Braid. Although Plested remains the largest shareholder with a 16% stake worth $395m, Braid's more modest 2.79% stake is still worth about $70m - supplemented by annual remuneration of $2.2m in 2017. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". How do you measure this? Its a huge level of success and theres satisfaction you get from that. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. It only represents a small part of our revenue, but . In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. By using this website you consent to the use of cookies in accordance with our privacy policy. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. So each person can earn some more money by not just making profit, but keeping customers happy, keeping claims to a lower amount, making sure were collecting cash, making sure that were delivering freight in full and on time but the base bonus, everybody gets the same amount no matter whether youve been there for one year or for 40 years and no matter what your position is. How Does Don Braid's Compensation Compare With Similar Sized Companies? As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. So the weekly P&L puts them on the spot. "You need some energy and you need to be on the front foot," he says. See the full transcript below. [14], In September 2007, it was reported by Business Wire that Mainfreight had signed a merger agreement with NYSE American-listed Target Logistics for $2.50 a share; for a total of US$54 million. So you need to be committed for the long term.The clich about the beach, the BMW and the boat it looks pretty attractive after 10 years of hard work but what could you have created after a hundred years and have you got something thats a bit special?I think you need passion, energy, belief and the ability to develop people to run the business for the future. In this episode, Bronson explains how the lessons he learned in the kitchen translated to the booth, the reason money can never be the motivation for creating art, and why he believes that imperfections are the best part of any masterpiece. The firms European business where it has a footprint of more than 330,000 sqm of warehousing saw a 23.4% improvement in profit before tax to 22.35m, despite extensive lockdowns across the continent, many of which were ongoing. In 2006 the New Zealand Mainfreight International and Owens International businesses were also merged to make Mainfreight Owens International Ltd (now Mainfreight International). We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. Other finalists were: Briscoe Group managing director Rod Duke, NZX chief executive Mark Weldon, ex-Fonterra chief executive Andrew Ferrier, Xero founder Rod Drury, LanzaTech chief executive Jennifer Holmgren, Ngai Tahu Holdings Corp chief executive Greg Campbell, TZ1 founding chief executive and former Microsoft New Zealand chief executive Helen Robinson, Farmers/Whitcoulls owners David and Anne Norman and Ryman Healthcare chief executive Simon Challies. Hamish. Alternatively, email editorial-team@simplywallst.com. 5 November 2019 - Mainfreight's Don Braid has reinforced his reputation as one of New Zealand's most successful executives, being named Executive of the Decade at the 2019 Deloitte Top 200 Awards in Auckland tonight (5 December 2019).Mainfreight was also named Company of the Year, sponsored by Deloitte Digital and Marsh. Some of the leading players in the listed retirement sector have been raising capital. [3] [4] When the company was founded it entered a highly regulated transport market. Revenues were up $448.4m to $3.5 billion, a 14.5% increase on the prior year, with 76% of that now generated outside New Zealand. Theres a video of it happening and what was really exciting was once the clock came off the wall, you could hear the laughter and the clapping and the voices of approval from those who were watching. Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. That's just a smallish increase of 6.9% on last year. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. I believe that I shouldnt ask my colleagues/work mates/ team to do any task I would not do myself or know how to do. He's got plenty of charm if he wants to have it and his leadership skills just stand out - people want to stand next to him.". This is vitally important for all business to remain financially viable and it is where more than often we see business failures and especially in the Building Construction Industries which I was involved in. And if you dont make a profit, theres no bonus that year. So what you produce in terms of profitability is real. While many companies have been battening down the hatches this year, Mainfreight has been on the acquisition trail - purchasing a Netherlands-based freight business which operates in Belgium, France, Romania and Poland and Russia. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. You know, people arrive when they arrive and they leave when they leave. Where should we open next? Then we got some momentum and we saw some of the other regions doing better than what we thought so we felt better about it. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. He is 100 percent dedicated to Mainfreight and its future and has led the company in consolidating its position as an international business, progress which will bring rewards not only for that company but for New Zealand as it continues to expand offshore. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. So we are developing our people to be the best they possibly can be. Bruce Plested, the firm's executive chairman who founded the company in 1978 with $7200 and a 1969 Bedford truck, recalls the day in 1994 when Braid - then a Freightways Group employee - had the job of pitching its Daily Freightways business to Mainfreight, which it acquired that year. We've identified 1 warning sign for Mainfreight that investors should be aware of in a dynamic business environment. Both are real legends and seem to really walk the talk. Our subscriptions start at $24 / month for individuals. He has issued a New research confirms the importance that NZ business leaders place on reputation, but reveals that many companies need to increase their investment in building and protecting it. Agreement with print tech giant Canon saves college thousands. The company is growing EPS and total shareholder returns have been pleasing. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. Its an intimate touch with the P&L; the weeklies tell us lot. Zac: What are your thoughts on driverless trucks and how they will affect Mainfreight? The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. That was uppermost in our mind. What we put in place here in New Zealand became the blueprint for the organization around the world. Spearheading the management team at New Zealands largest supply chain logistics and transport company has paid off handsomely for Mainfreight group managing director Don Braid. Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. Rapper, chef and author Action Bronson takes us on a journey from his early days at culinary school, to releasing critically acclaimed albums, to writing books, starring in TV shows and building an iconic brand around his favorite interests. We ask our people to recruit very good people with passion and energy; people good enough to become branch managers. While the group had deferred capital expenditure during early 2020, it had recommenced land and building projects during the year, with net capex totalling $118.6m, of which land and buildings accounted for $58.9m, plant and equipment $26m, fit out costs of $15.6m and information technology another $18m. Initially wed take 10% of that profit and share it equally with everybody in the branch but as weve developed and gotten a little more sophisticated, weve applied quality stats to the numbers. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. Wed rather own assets than lease them. In April 2007, Mainfreight announced its intentions to sell its Pan Orient Project Logistics business and its 75% interest in Lep Australia and New Zealand to global logistics company Agility Group for A$83 million. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Weve sort of tucked on the back of some trials in Europe and in the States where they were running in threes and fours behind each other, all connected by a computer. "I just think that's disgusting," he says. Who wouldnt want exposure to the retirement sector? Nothing drives home the state of our roads like a trip on a bike. Not bad for a Kiwi trucking company! "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. You can follow him on Twitter, New tourism plan sidesteps immigration elephant, Mortgage arrears up as rates start to bite, Investors queue up ahead of Du Val liquidity events, Affordable housing levy sparks fear and loathing in Queenstown. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. COVID-19 has had a significant impact on freight and supply chains worldwide. Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. The long-term effects must be carefully studied. As a Government Minister, Richard was responsible for creating SOEs, deregulating telecommunications and broadcasting, reforming ports, airports, railways and aviation. Prior to joining Air New Zealand, he held range of senior management positions both within New Zealand and overseas, including roles with the National Australia Bank, Bank of New Zealand, Telecom NZ and ITV Group in the UK. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. They established agencies in the early days with Australian, Pacific Island and United States freight forwarders and the established agents in most major trading partner countries of New Zealand. Other Current Significant Directorships and Trusteeships: BUPA ANZ Pty Limited (Chairman), Adherium Limited, Clearspan Limited, Thinxtra Australia, Starship Foundation, Massey University Foundation. How do I gain more customers? The CEO of Mainfreight Limited (NZSE:MFT) is Don Braid, and this article examines the executive's compensation against the backdrop of overall company performance. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. Mainfreight chief executive Don Braid says New Zealand needs to slash the number of its container ports to a 'maximum' of three to avoid being side-lined by major shippers.The 18-year veteran CEO of the NZX-listed multinational logistics company told a supply chain forum in Auckland on Wednesday that container cranes sitting at most of the And thats that. I just have a belief and determination that weve got a pretty good business here. Those are the real world indicators of whether youve got morale correct or not or whether youve got some issues going on you need to address. Between 1994 and 1997 Mainfreight started acquiring former competitors, such as, Daily Freightways and Chem Couriers in 1994, a 75% shareholding in Lep New Zealand in 1996, and Combined Haulage and Senco Haulage in 1997. Please note that with cookies disabled you will have a degraded experience with some features. Is our service or a product still current? What else do we need to do to satisfy that bunch of customers? Everyone stands on their own two feet. His company has been a shining example of success amid tough global economic conditions. Don: Its been interesting! That means a lot of travel, but the reality is I thought my skills were best used in front of a customer so thats what I focused on. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. The Australian business reported a 46.6% jump in profit before tax to A$71.5m for the year, on the back of regional expansion of the groups transport business. We offer lots of training as well, internally and externally. Don Braid. And I think ultimately, yes, Im responsible for the business, but I enjoy what I do and having great people and a good lifestyle where I can stay fit and have some fun means the stress levels arent that high. Us taking away that clock was about responsibility and about taking away that control from head office. Privacy policy Mainfreight is the fourth largest company in NZ, doing over $3 billion in sales and over $300 million in EBITDA, with physical assets of $1.5 billion and debt of less than $200 million. Im sure that everyone on this video call will be wanting to shake hands and sit across the table and deal face to face because of the body language thing and being able to ask more questions, whereas the video is quite limiting. The branch managers are the kings and queens, by the way, because thats where the moneys made the national team is just there to support the branch managers. I will definitely be following the Mainfreight progress closely for when I return to NZ. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. Look after your people and theyll look after the business. Group managing director Don Braid said it was a significant result for the Mainfreight family, achieved during a tumultuous time in the worlds history and with success in every one of the five regions the company operated. In the decade Braid has spent at its helm, the company has become a global logistics player with operations on every populated continent apart from Africa. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. So the idea was to make sure that our people were right, that our systems were ok, what customers could trade, and how we could help those customers as an essential service. I really want to be in front of those customers! As a young salesperson aged 19, I couldnt make a cold call. Mainfreight will pay a discretionary bonus of $43.9 million, up 61% from last year's bonus of $27.3m, after a record result to March which saw net profit up by $40.1m to $188.1m. Get in touch with us directly. Though his father was a truck driver, Timaru-born Braid cant recall being influenced by this. Whats changed? Leading reputation management consultant Noke Kiroyan says it is perfectly possible although not always easy to run a business in Indonesia without resorting to corrupt behaviour. See ourstandard terms and conditionsfor more information. "He never moans about the currency and is always positive.". Engage via Email. Simply Wall St has no position in any stocks mentioned.Have feedback on this article? Target has offices in 35 cities throughout the United States and an international network of agents in over 70 countries.[15]. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. He attributed the. Zac: Can you share more about your profit share? For me its being in the business, with people and in particular with customers. Don: The culture is really important and our culture starts with those closest to the customer. So a lot is about the long game. Its about the other employees seeing the numbers; dont forget, we share those profits with our people too so theres internal pressure to perform too. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. Don joined in 1994 and hes been on the board since 2000 and the CEO for a heck of a long time. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. Its great fun. Where do we need to be? Insurers support an immediate managed retreat for recent flood victims. 11/5/2022 3:33 PM. Required fields are marked *. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. The company posted record earnings and revenue for its last full year and has continued to break records this financial year. To trust your people too, to give them the responsibility. Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9.3% of the pie.
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