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Zac: Don, your 100-year vision how does that work? Don: Well, the numbers never lie, right? We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. Don: Its been interesting! Don Braid. But, he said the first seven weeks of trading in the current year has been at similar levels to the past six months. Boards have a key role to play in the wake of any crisis. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. 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. By using this website you consent to the use of cookies in accordance with our privacy policy. Hi Tanya. 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. So you need to make sure youve got succession planning to be able to work on the dream that youre creating. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . 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. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. In 2006 the New Zealand Mainfreight International and Owens International businesses were also merged to make Mainfreight Owens International Ltd (now Mainfreight International). Mainfreight has international operations in the United States through CaroTrans International and most recently Mainfreight International businesses after the 2007 acquisition of Target Logistics, in Asia (nine branches in China, one each in Taiwan, Singapore and Hong Kong). He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. Copyright 2023 Institute of Directors 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. What are their requirements? Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. Don: The recruitment of our people sits with the branch managers. And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. 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. 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. Zac: Can you share more about your profit share? 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. Mainfreight managing director Don Braid. Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. Formerly Halford Young, Halford is a private logistics company and freight forwarder with operations and networks in Australia and New Zealand, Japan, Germany, throughout Asia and the United States.[6]. [3][4], When the company was founded it entered a highly regulated transport market. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. Should it change? 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. 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. 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. 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. You may withdraw your consent at any time. He knows where the company is going and, more importantly, how it will get there. 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. Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. Having started out with two employees and one truck in 1978, the company now employs more than 7500 people in 22 countries and generated a net profit of $103m in the 2017 financial year on operating revenue of $2.33 billion. 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. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. That's just a smallish increase of 6.9% on last year. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. 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 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. 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). 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. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. It doesnt matter what the worlds thrown at them, theyve shown they are capable of dealing with it. Brent is a senior reporter based in Queenstown. Theres no bullshit in the numbers, they are what the business has earned. Everyone stands on their own two feet. Both are real legends and seem to really walk the talk. 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. 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. 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. As a Government Minister, Richard was responsible for creating SOEs, deregulating telecommunications and broadcasting, reforming ports, airports, railways and aviation. COVID-19 has had a significant impact on freight and supply chains worldwide. WINNER He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. Whilst describing the foundation of Mainfreight in 2000, Plested said to the New Zealand Herald, "We moved all our freight by sea between Auckland, and Christchurch and Dunedin, and we worked weekend shifts to make sure we loaded and unloaded the ship using the whole of the seven days - we found that was faster and more reliable than our big competitors."[4]. Check out our latest analysis for Mainfreight. 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. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future. Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. Mainfreights newest regions, Asia, Europe and The Americas (spanning from Canada to South America), are expected to grow exponentially as the world trade shifts towards other developing countries. By becoming a supporter, you'll be helping us expand our independent journalism for the business community. And he should know, having spent his entire working life in the freight industry. 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. 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. 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. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. Target has offices in 35 cities throughout the United States and an international network of agents in over 70 countries.[15]. "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 points out that 172 million people live within a 350 km radius of Wim Bosman's headquarters in's-Heerenberg, on the Dutch-German border. How are we changing the business accordingly? 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. Sam Knowles It only represents a small part of our revenue, but . Watson said she did not believe bonuses were a way. What have we got right? Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. Zac: Whats a bit of business advice you can share? "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. We tackle critical leadership, management and economic issues as well as profiling successful local and global leaders. Subscribe, 0.1 The Four Pillars of Governance Best Practice, 0.3 Corporate governance landscape in New Zealand, The second pillar - An effective governance culture, 2.3 Board architecture a charter for the board, 2.4 Board composition and succession planning, 2.5 Key competencies for non-executive directors, 3.6 Technology and information governance, 3.11 Employees holding external directorships, 4.4 Director shareholdings and insider trading, 4.16 The company secretary or corporate officer, Breakfast with Don Braid, Managing Director of Mainfreight Ltd. We ask our people to recruit very good people with passion and energy; people good enough to become branch managers. 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. 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. Early on, New Zealand had great lessons to take to the rest of our network. This information will be used to measure the effectiveness of our advertising from various channels and to offer you personalised ads. He attributed the. People thrive on being given responsibility. | He previously worked for the Otago Daily Times, after a return to business journalism in 2018. I think weve done 17 to date since Covid and weve got another six or eight for the next two weeks just for New Zealand and theyve adapted. "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. I might get a little bit wound up about stuff, a bit passionate about things, but I think you cant get so involved that you think about nothing else. Bryan has a wealth of experience, both in executive and board roles. I dont see this as a job, so therefore the stress levels arent as strong. Hes the right man for the job at just the right time. The key for me is to be in the business as much as possible, to be visible. He has an enviable track record of integrity and professionalism and wide ranging business experience. [13] The transaction was completed on 6 June 2007. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. 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. 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. Braid recalls with horror the memory of listening to a chief executive refer to her workers as "FTEs" - full-time equivalents - during a radio interview. Biography Experts say community investment is the future. Click on [Agree] or [Disagree] to accept or refuse cookies. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. Other Current Directorships: Don: The culture is really important and our culture starts with those closest to the customer. His intellect and pragmatic approach is highly regarded at the Board table. JUDGES COMMENTS A table of ten booking is available for $1000.00, subject to availability at the time of booking. 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. 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. 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. Don Braid is Managing Director/CEO at Mainfreight Ltd. See Don Braid's compensation, career history, education, & memberships. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. Id also be really focused on being in touch with customers. Don: It should be where your skills are. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. How Does Don Braid's Compensation Compare With Similar Sized Companies? 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.". Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . FINALIST [7] This takeover was in response to the purchase of Tranz Rail by Australian transport firm Toll Holdings. I learned that early in the piece and I think its stood me in good stead. How do I gain more customers? Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. 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. So it doesnt matter whether youre loading freight, taking customer service calls, out making sales calls, or an operations transport manager, you understand those disciplines early on in the piece. Look after your people and theyll look after the business. Get in touch with us directly. In 2003 Mainfreight bought Owens Group, one of New Zealand's largest trucking firms. Braid said that while Mainfreights people can be proud of the way they stood up to be counted, there would continue to be uncertainty with heavily congested supply chains continuing to affect the worlds freight lanes. Don Braid. The company now expects to spend an additional $338m for property over the next two years, with $156m of that during the current financial year. Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. Appointment to Board 2000 - With Mainfreight since 1994. "He implements things very well and you don't have to remind him about anything you're trying to achieve. Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. What we put in place here in New Zealand became the blueprint for the organization around the world. FINALIST See the full transcript below. If were going to build facilities for our people, we build very good facilities to be around for a long time. Rob Fyfe And sometimes, particularly so in New Zealand, they see the market ultimately being as quite small, when in fact their product or service is good enough to take to the world. Don from Mainfreight talks to Fisher Funds. Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys' High School and has over 43 years' experience in freight forwarding and logistics both New Zealand and internationally. 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. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. 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. Its the individuals responsibility to arrive on time and stay until the jobs finished. And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. Chosen from New Zealand's top companies, this year's Deloitte . 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. Hamish. I suppose were grooming people all the time for those loaded leadership roles. So take a peek at this free list of interesting companies. Email. On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. Don: I think empathy is really important. Its a huge level of success and theres satisfaction you get from that. Its having empathy and I think Im patient, determined, have belief and energy. 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 CEO compensation can have a massive impact on performance, but it's just one element. 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.. 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. Zac: Don, having a decentralized business, whats been your approach to leadership? Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. Its great fun. 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. "We've been in China for 20 years. At the end of the day, the decisions they made will be seen in the weekly results. 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? For more information, please visit our cookie statement. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. At Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. 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. An unabashed promoter of New Zealand success, he has an extensive background in the banking industry in New Zealand and Australia, with senior management experience in marketing, strategic planning, retail services and business development. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. Thanks for your comments about Don Braid and Mainfreight. Terms of use They love this as it makes them feel supported and that I understand their role. 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. Your email address will not be published. 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. 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. Thats the key. This article by Simply Wall St is general in nature. Weve made this article available for free. Theres no cross subsidies. Its revenue is up 5.9% over the last year. Alternatively, email editorial-team@simplywallst.com. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. You cant see yourself as an employer of 8500 people. What havent we got right? 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. Fyfe joined Air New Zealand at the start of 2003 as chief information officer, before becoming group general manager airlines from October 2003 until his appointment as CEO in October 2005. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. 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. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. Mainfreights two new build warehouses, a 50,000 square metre facility in Sydney and 30,000sqm build in Melbourne, are scheduled for completion by end next year. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. As you get bigger, staff engagement and culture becomes more difficult. 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. So weve got eight and a half thousand people and 282 locations. We use functional and analytical cookies on our website to offer an optimal user experience. Required fields are marked *. 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. So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. Don Braid 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. 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. I dont believe that. Richard Prebble is by profession a lawyer. Your email address will not be published. A licence from New Zealand Railways Corporation was needed to carry freight over 150km. Don: Um, I think its recognising good people. Other Current Significant Directorships and Trusteeships: BUPA ANZ Pty Limited (Chairman), Adherium Limited, Clearspan Limited, Thinxtra Australia, Starship Foundation, Massey University Foundation. Nothing drives home the state of our roads like a trip on a bike. Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. Early in my career I understood that I enjoyed the interaction with customers and in fact I enjoy the challenge of helping win new customers. We dont call them staff for us, they are our people or our team. While there was someone in the drivers seat, the computer took over the vehicle. 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. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. 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. As Chairman and Founder, Bruce shares his vision for the Company with the Mainfreight team, bringing a particular focus to quality and our culture. 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. They know that now and can alter those decisions as they head into the week in front of them. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m.