People thrive on being given responsibility. He knows where the company is going and, more importantly, how it will get there. To join your company account for BusinessDesk and enjoy full access, 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. You know, people arrive when they arrive and they leave when they leave. 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. Rob Fyfe 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. It only represents a small part of our revenue, but . Contact. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. Zac: As the leader of Mainfreight, what do you personally focus on to get the team going in the right direction? Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. 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. Not bad for a Kiwi trucking company! 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. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. Nothing drives home the state of our roads like a trip on a bike. But, he said, the groups response at the outset of the pandemic had been unequivocal. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. 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. So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? 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. 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. So long term, we have a really experienced leadership team. By the way, its not just about us seeing those numbers. 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". 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. "You need some energy and you need to be on the front foot," he 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. 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. So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. Although Plested remains the largest shareholder with a 16% stake worth $395m, Braids more modest 2.79% stake is still worth about $70m supplemented by annual remuneration of $2.2m in 2017. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? Don has over 40 years experience in the freight industry, including 26 with Mainfreight. For further information, please contact Don Braid, Group Managing Director, telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com. Privacy policy 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. And thats that. 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). Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. Mainfreight people, he says, don't "live in question marks". This information will be used to measure the effectiveness of our advertising from various channels and to offer you personalised ads. How are we changing the business accordingly? I learned that early in the piece and I think its stood me in good stead. Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. BusinessDesk has a paywall for most of its content. Zac: Lets talk more about those weekly P&Ls. Required fields are marked *. Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. It now has 22 company depots in Australia and relies on agents and third parties in the Northern Territory, Tasmania and some of regional Australia. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. The company is growing EPS and total shareholder returns have been pleasing. It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. Don Braid is Managing Director/CEO at Mainfreight Ltd. See Don Braid's compensation, career history, education, & memberships. 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. 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. Don Braid Its a huge level of success and theres satisfaction you get from that. Out of that, I think weve got the culture really starting to develop. 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. Don: I get out of the way. So weve got eight and a half thousand people and 282 locations. Things are changing a little bit and everyones suggesting that its all going to go to eCommerce. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. "I don't think any of those things are really of interest to this," he says. Theres no cross subsidies. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. 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. 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. 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. To trust your people too, to give them the responsibility. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. And he should know, having spent his entire working life in the freight industry. Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. Don Braid. Don Braid. And then its about exploring the long game. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. 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. Your email address will not be published. [17], "Shareholding Information - Mainfreight Limited", "Mainfreight co-founder Neil Graham dies", "Road transport regulation a controversial measure to protect railways", "Mainfreight announces agreement to acquire Halford International", "Mainfreight breaks into Europe with $227m acquisition", "Mainfreight sues for $18m after shock client loss", "Mainfreight gets $14m payout - drops Euro claim", "The Wim Bosman Group becomes Mainfreight", "Mainfreight sells Pan Orient Project Logistics and its 75% shareholding in LEP (New Zealand and Australia) for over A$83 million", "Mainfreight Limited (Mainfreight) completes sale of Pan Orient Project Logistics", "Target Logistics, Inc. Agrees to be Acquired by Mainfreight Limited", https://en.wikipedia.org/w/index.php?title=Mainfreight&oldid=1136159997, Daily Freight (NZ), Carotrans (Worldwide), Owens (AU/NZ), ChemCouriers (AU/NZ) Mainfreight Europe (EU), This page was last edited on 29 January 2023, at 01:07. 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. That's ambitious, even . Read More . We use functional and analytical cookies on our website to offer an optimal user experience. He brings strong financial skills and business acumen to the role. 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 Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. Don: Um, I think its recognising good people. We're trying to break all that down.". Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. [8], Headquartered in 's-Heerenberg, The Netherlands, Wim Bosman is privately held and operates more than 1,000 transport units, manage more than 275,000m2 of cross-docking facilities and warehouse area, and employ roughly 1,414 staff within 14 branches located in The Netherlands, Belgium, France, Romania, Poland, and Russia. The relationships we develop, both with suppliers and with customers, are there for the long term. So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? Mainfreight's straight-talking group managing director has an infectious zest for business. "I probably wasn't qualified enough to go to university," Braid says. Forsyth Barr analyst Rob Mercer said the market had confidence in Mainfreight after it managed to grow revenue and market share and outperform its peers during the global financial crisis. And analysts have been warned that they "won't get a second interview" if they make that mistake of calling Mainfreight a "trucking company". It has been listed on the New Zealand Exchange since 1996. So what you produce in terms of profitability is real. 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 NewZealand and internationally. We applaud that; weve always paid every supplier on the 20th of the month following and we ask the same of our customers. Investment has to come year on year it cant just come as a bribe at election time., Embracing the company motto that Good enough is never enough, Braid is focused on fulfilling a vision to make Mainfreight a 100-year company. What are their requirements? 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. [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. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own name, which reveals to us that they have a significant personal stake in the company. 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. We offer lots of training as well, internally and externally. 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. 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. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. 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. Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. 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. d***@mainfreight.com. 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. 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. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. COVID-19 has had a significant impact on freight and supply chains worldwide. I suppose were grooming people all the time for those loaded leadership roles. 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. That's just a smallish increase of 6.9% on last year. | And what do you believe leaders need to excel at? Don: It should be where your skills are. 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. 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. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. Business in the Americas also saw an improved performance, with a 29.7% increase in profit to US$25.93m, with Mainfreight's air and ocean division benefiting from resurgent demand from customers and market share gains in the US. Everyone stands on their own two feet. 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. So the weekly P&L puts them on the spot. 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. Look after our people, look after our customers, guard our cash, and embrace the opportunities that may arise.. 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. 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. I dont believe that. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? 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. For me its being in the business, with people and in particular with customers. 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. His company has been a shining example of success amid tough global economic conditions. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. How Does Don Braid's Compensation Compare With Similar Sized Companies? The government is pushing really hard for the major New Zealand companies to pay their suppliers on time, within 30 days. What have we got right? 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. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. The firm's shares have been one of the best performing stocks on the NZX, returning more than. "He never talks about himself and always talks about long-term goals," Hunt says. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. Were thinking about being around for a hundred years. For more information, please visit our cookie statement. Bryan has a wealth of experience, both in executive and board roles. Early in the piece at Mainfreight, leaders are given responsibility, so the ability to take responsibility and to make decisions is pretty important. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Do also serves as a member of the Board of the Starship foundation. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. 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. Experts say community investment is the future. [3][4], When the company was founded it entered a highly regulated transport market. So everything that we do is about being here for a long time. He believes in fostering an innovative culture in the organisation and encourages top performances from his teams. Wishing you the best in England and when you return to NZ. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. Cash flow is essential for any business survival. On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. Don Braid. Don: With this event in front of us right now, I think cash is king, and the collection of cash. 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. Previously, Don was a Political Columnist at Calgary Herald. Don Braid (Mainfreight) Credit: Mainfreight . Where should we open next? I will definitely be following the Mainfreight progress closely for when I return to NZ. It is totally how I believe a company should be and I love how everyone starts at the bottom. 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. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. Copyright 2023 Institute of Directors Its Mainfreights style to offer career progression, giving people here a long-term career in the business, allowing them to find that space to develop the leadership traits. Save my name, email, and website in this browser for the next time I comment. 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. 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. So we are developing our people to be the best they possibly can be. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. And thats why we travel a lot when you visit, you can smell the morale in an instant. Group Managing Director, Mainfreight. Weve got examples of that in our business right now. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. 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. Email. Don: Well, the numbers never lie, right?
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