As Group Managing Director of Mainfreight Limited - one of New Zealands largest freight companies - Don Braid joins us to share key insights for directors into the changing patterns of these chains and what the future may hold. 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, operating in 26 countries around the world, with $3+ billion in sales revenue, and he leads a team of 9,240 passionate Mainfreight people all around the world. [4] This operation was expanded with depots in Melbourne and Brisbane. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. The company is on track to go close to the $2 billion mark in its current financial year, Braid says, having already posted an almost $900 million revenue for the six months to September. Zac: Don, what makes you good? We use functional and analytical cookies on our website to offer an optimal user experience. See the full transcript below. Theyll have the Mainfreight culture, but itll have a little twist for example, the culture in Shanghai is different to the culture in Newark or the Netherlands or Sydney. BRAID, Don - NBR | The Authority since 1970 The lawsuit claimed that Wim Bosman, the former owner, had prior knowledge of a large client, Giant Bicycles, intentions to end corporate ties with the group. Mainfreight - Wikipedia 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. How are we changing the business accordingly? Mainfreight's net profit rose by $40.1m to $188.1m. Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. 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. Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. 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. Don: The recruitment of our people sits with the branch managers. Under his guidance, the freight and logistics company has grown and expanded to now run operations in New Zealand, Australia, Asia and the United States. They have over 8500 staff in 280+ locations across 28 countries, so it was pretty cool (and humbling) for us to be able to chat to Don with some of our Business Changing clients recently. Managing director Don Braid said the result was pleasing, particularly in light of supply chain congestion and ongoing lockdown disruptions in most of Mainfreight's markets. In the leadup to the 2017 election, Braid said the country needed to be run by visionaries rather than a couple of accountants and he took aim at Nationals pledge to spend an extra $2.6b on Auckland transport. Like most Kiwi business leaders, Braid is self-effacing and doesn't fancy talking to journalists about his life outside the company. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. 2023: A year of trepidation unless you take control, Talking to 2022 Westpac Supreme Business Winner, Juliette Hogan, How Fix & Fogg are winning the hearts of Americans. Its an intimate touch with the P&L; the weeklies tell us lot. He has clear vision of what it will take to navigate the unforgiving roads and heavy traffic of the international freight marketplace and so far he has kept this business right on track. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. "You need some energy and you need to be on the front foot," he says. Director Profiles - Mainfreight The relationships we develop, both with suppliers and with customers, are there for the long term. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. "I think I've always enjoyed business, from an early age, so to be involved like I am today has been great. "I don't think any of those things are really of interest to this," he says. Get in touch with us directly. 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. 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. Well known for his mental and physical toughness, Braid is often seen working out at The Atrium Club in downtown Auckland, which offers real world fitness for men. His sartorial style was also recognised in 2006 when he was judged the national winner of the NBR Working Style Best Dressed Businessman Awards. He likes to surround himself with clever, energetic people who are equally as dedicated as him to meeting and exceeding the needs of Mainfreights customers. "It's just a little rule that we've had because if they [analysts] keep calling us a trucking company they clearly haven't done their research.". Of course, you might find a fantastic investment by looking at a different set of stocks. Youve got to have good outlets. Early in the piece at Mainfreight, leaders are given responsibility, so the ability to take responsibility and to make decisions is pretty important. Don: I think its quite a long way off. So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. And thats why we travel a lot when you visit, you can smell the morale in an instant. And thats that. Im not sure well see driverless trucks in NZ for some time to come. Mainfreight Half Year Financial Results 30 September 2021 - NZX I learned that early in the piece and I think its stood me in good stead. 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. Investors who take an interest in Mainfreight Limited ( NZSE:MFT) should definitely note that the Group MD & Director, Donald Braid, recently paid NZ$74.61 per share to buy NZ$500k worth of. Mainfreight boss: China 'understands our value' - NZ Herald So I think cashflow is king and Id be focused on that. Kiwis know the firm largely through its blue trucks that ply our highways, but the company also utilises sea, train and air freight to transport goods around the world. Then we just sat back and allowed the de-centralized process to take over and allowed people to take responsibility to get their businesses sorted and in line. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. Who wouldnt want exposure to the retirement sector? Thanks Mr Braid for sharing your knowledge and insight. We're trying to break all that down.". Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. Please note that with cookies disabled you will have a degraded experience with some features. Its revenue is up 5.9% over the last year. Read More . Zac: Can you share more about your profit share? We have been monitoring government updates regarding COVID-19 and are keeping up to date with Ministry of Health guidance with regard to events and public gatherings. Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. And I suppose the key thing that we had in our mind was how are we going to run this business to survive and not make anybody redundant. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. Mainfreight is publicly listed on the NZ Stock Exchange with a market capitalisation of $8+ billion. It is totally how I believe a company should be and I love how everyone starts at the bottom. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. We will probably go back to normal but be ready to adapt, be flexible and look after your people theyll bring the answers to the table for you on what your business will look like in the future. A licence from New Zealand Railways Corporation was needed to carry freight over 150km. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? We would meet with them once a week and theyd share what theyd discovered and what they hadnt discovered and wed give them some guidance but then get out of their way and let them get on with the job. [11], Since 2011, Mainfreight, under the Wim Bosman name, have opened new branches in Bergen op Zoom in The Netherlands, Cluj-Napoca in Romania, Frankfurt and Gelsenkirchen in Germany, London in United Kingdom, and Pozna/Lubo in Poland. 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. Its even more exciting doing that in offshore markets with a really big customer where youre actually sitting in front of them and we know we will turn our industry upside down by winning quite large business off the incumbents. Boards have a key role to play in the wake of any crisis. I dont see this as a job, so therefore the stress levels arent as strong. Biography Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys' High School and has over 30 years' experience in freight forwarding and logistics both New Zealand and internationally.. Well in Europe they had these time clocks. Yes, wed committed an enormous amount of capital expenditure coming into this new financial year, but we were in good shape in that the balance sheet looks pretty good. Concerned about the content? Some of the leading players in the listed retirement sector have been raising capital. What Can We Conclude About Mainfreight's (NZSE:MFT) CEO Pay? - Yahoo! You cant see yourself as an employer of 8500 people. Mainfreight completes huge software roll-out, spanning A/NZ, US and Deloitte Top 200 Award Winners Announced for 2019 Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. The company posted record earnings and revenue for its last full year and has continued to break records this financial year. What do those customers look for from us? His intellect and pragmatic approach is highly regarded at the Board table. As you get bigger, staff engagement and culture becomes more difficult. Once it became a global pandemic we needed to react and adapt as quickly as we could. The Biosecurity Business Pledge group has launched two new biosecurity guides. Look after our people, look after our customers, guard our cash, and embrace the opportunities that may arise.. Once we convinced them that they didnt need a time clock, they took to them with a sledgehammer. The trick is to decentralize it and to give them control of the profit and loss, allow them to have sufficient KPIs, and measurement systems to monitor those as quickly as possible so that nothing gets out of control. On the Money: Tim Boyd he's back; James Lee he's leaving, and more New drugs could end the worlds obesity epidemic, Big plus for NZ schools and govt agencies, Growing wealth through our cities growth, Insurers call on government to seize the day, Smoke, mirrors and delay Nationals three waters policy, Former CentrePort CEO Liz Ward joins KiwiRail board. [5] When deregulation of land transport occurred in October 1982, Mainfreight quickly took advantage of the opportunities presented and won a large share of the freight market. 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. Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. "I probably wasn't qualified enough to go to university," Braid says. 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. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. They couldnt believe we trusted them to turn up when we needed them to turn up and leave when we needed them to leave. 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. We were lucky enough to have a really incredible chat with Mainfreight CEO Don Braid about what he has learnt as the CEO of Mainfreight. In the 12 months to March 31, Mainfreight - which has been one of the top performing stocks on the NZX this year - posted record sales of $1.34 billion. Experts say community investment is the future. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. Were not thinking about selling our shares, were not thinking of getting out when the goings good were here for the good and the bad so were preparing the business for that next 100 years. 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 Braid. Your email address will not be published. Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, No Major Offer Expected on Childcare in UK Budget, Biden Gives Medal of Honor to Trailblazing Special Forces Member, Climate Change Is Launching a MutantSeed Space Race, UK Braces for Rare Weather Event That Risks Late-Winter Freeze, What Do You Want to See in a Covid Memorial? We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. "Don gave this glowing account of [Daily Freightways] and I kept looking at him and thinking 'what a lot of bullshit'," Plested says. Chief executive, Kiwibank Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. Aside from travel (usually), customers, and communicating with those in other countries I spend my time in front of our people and our leadership team, no matter where they are located. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. Required fields are marked *. 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. So long term, we have a really experienced leadership team. 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 Group MD & Director of Mainfreight Limited (NZSE:MFT), Donald Braid This endeavor launched the first permanent investment into South America. Youve got to think about that as small groups of people looking after our customers and each group is important in their own right and theyll have their own little traits. 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. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. Grant Samuel & Associates Ltd. Kate brings to the Board her broad financial and analytical experience acquired in a range of industries, both in New Zealand and overseas. Group Managing Director at Mainfreight NZ . Mainfreight's $43.9m 'family' bonus | BusinessDesk In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. The long-term effects must be carefully studied. Though his father was a truck driver, Timaru-born Braid cant recall being influenced by this. Will be fundamentally different from the last one. I will definitely be following the Mainfreight progress closely for when I return to NZ. He knows where the company is going and, more importantly, how it will get there. While there was someone in the drivers seat, the computer took over the vehicle. Wishing you the best in England and when you return to NZ. "He implements things very well and you don't have to remind him about anything you're trying to achieve. 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. Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. But the excitement is justified. If our team on the dock is seeing poor decision-making thats eroding profitability, they will suffer because they share that profit so there comes internal pressure just as much from them as there is from us, looking at how the business is progressing. Plested says that within a few months of the firm's acquisition of Daily Freightways, which became Daily Freight under Mainfreight ownership, he came to recognise Braid's strengths. His father was a truck driver, but he says that didn't influence his career decisions. I think with a driverless truck, well lose that ability of interaction with the customer on pickup or on delivery. How Does Don Braid's Compensation Compare With Similar Sized Companies? Bryan has a wealth of experience, both in executive and board roles. Rob Fyfe With well-established locations that include China, Hong Kong, Taiwan, Malaysia, Thailand, Vietnam, Singapore, Japan and Korea, the Mainfreight global network continues to expand year over year. Private parking spaces are also banned at Mainfreight - the group managing director has to find himself a spot in the carpark each morning after he drives through the front gate. Not living as a question mark but instead getting on with it and making those decisions. Chief executive, Mainfreight He has led the company in strengthening its global logistics business and ensuring an increased diversification of revenue streams across many countries, trade lanes and activities provides natural protection for earnings. See ourstandard terms and conditionsfor more information. Weve got examples of that in our business right now. 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. Don Braid. Is our service or a product still current? 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, Plested was quoted as saying after Braid was selected as the 2011 Business Leader of the Year. That's ambitious, even . The opportunities offshore and the populations that exist in some of those other countries are large; you only have to get something half right in some of those countries and youre growing a big business compared to what you have here in New Zealand. Hamish. [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. His leadership is underpinned by a strong belief in Mainfreights global competency and capabilities to provide high-quality supply chain solutions for our customers. 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. How we can fix New Zealand's ports - Don Braid | BusinessDesk 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. Chosen from New Zealand's top companies, this year's Deloitte . Pot vote has Oklahoma hungry to rake in green from Texas, How Ron DeSantis misreads Corporate America, Tesla recalls 3,470 Model Y vehicles over loose bolts, 3 big things in investing you might have missed this week, UPDATE 1-North Korea says US causing international arms control collapse. CEO compensation can have a massive impact on performance, but it's just one element. 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 don@mainfreight.com; Profile. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. Part of our recruitment process is to get them to go through the system and learn the business from the floor up: you start by pushing a broom or running documents to Customs. 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. Involved in the founding of Kiwibank before taking the top job, Knowles embraces challenge and thrives on delivering top results. What havent we got right? [3][4], When the company was founded it entered a highly regulated transport market. His company has been a shining example of success amid tough global economic conditions. Where do we need to be? 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. They know that now and can alter those decisions as they head into the week in front of them. You may withdraw your consent at any time. So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? Weve made this article available for free. Don joined in 1994 and hes been on the board since 2000 and the CEO for a heck of a long time. The government is pushing really hard for the major New Zealand companies to pay their suppliers on time, within 30 days. Will His AI Plans Be Any Different? Don Braid - Group Managing Director - Mainfreight NZ | ZoomInfo Regrettably, registration fees cannot be refunded when cancellations are received within two working days prior to any branch event. The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. If were going to build facilities for our people, we build very good facilities to be around for a long time. Thats the best way of being able to manage an event like were in right now, but Id say its the best way to run a business at all times.We have some really good systems. We offer lots of training as well, internally and externally. On examining similar-sized companies in the industry with market capitalizations between NZ$2.9b and NZ$9.4b, we discovered that the median CEO total compensation of that group was NZ$3.7m. Whats changed? 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. The multinational logistics and transport group announced a year end dividend of 45 cents a share, taking the full dividend for the year to 75c, up 27% on the prior year. Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. Don: I get out of the way. Mainfreight is a truly brilliant organization who sees all staff and their Franchises businesses as friends not employees. On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. 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. The NZ team, who had really done a great job through the Kaikoura and Christchurch earthquakes, quickly put together a plan on how to react. Were thinking about being around for a hundred years. Don Braid - newzealandinc.com Simon has a long association with Mainfreight having served as the Companys main adviser for acquisitions, debt structure and other matters since 2003 (through Grant Samuel & Associates), prior to joining the Mainfreight Board. Weve needed to adjust, particularly in the international sector, air freight charters rather than just normal air freight our people had never had any experience in chartering a full plane. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. But, he said, the groups response at the outset of the pandemic had been unequivocal. With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. "That gives us an enormous amount of opportunity.". His first job after leaving school was as a clerk with the Shipping Corporation before he moved on to Sea Freightways and then Daily Freightways, which was sold to Mainfreight in 1994. What Can We Conclude About Mainfreight's (NZSE:MFT) CEO Pay? 11/5/2022 3:33 PM. Regionally, the NZ business saw an increase of 11.5% in profit before tax to $97.8m, though supply chain capacity into and from NZ remains congested, and the company is frustrated with international shipping lines".
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