Engage via Email. On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. 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. Component 2020 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. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. Look after our people, look after our customers, guard our cash, and embrace the opportunities that may arise.. 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. "You need some energy and you need to be on the front foot," he says. I just have a belief and determination that weve got a pretty good business here. 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. Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. It doesnt matter what the worlds thrown at them, theyve shown they are capable of dealing with it. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. Don Braid. 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. That was uppermost in our mind. Wed rather own assets than lease them. It has been listed on the New Zealand Exchange since 1996. Chief executive, Kiwibank Bruce would be the first person to say he needed to have great leadership following him if he wanted to bring his hundred year vision to life. 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! 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. Mainfreight is a truly brilliant organization who sees all staff and their Franchises businesses as friends not employees. Zac: What is the Mainfreight way when it comes to culture? Thanks Mr Braid for sharing your knowledge and insight. The firm has earned a reputation within the market for being slickly-run. DCB had a staff base of five employees on the date of acquisition, however, staff was expected to rise to seven employees. The Biosecurity Business Pledge group has launched two new biosecurity guides. 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. And if you dont make a profit, theres no bonus that year. Well in Europe they had these time clocks. Should it change? 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. Don: It should be where your skills are. 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. Learn more. That's just a smallish increase of 6.9% on last year. By using this website you consent to the use of cookies in accordance with our privacy policy. To join your company account for BusinessDesk and enjoy full access, More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. The company posted record earnings and revenue for its last full year and has continued to break records this financial year. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? 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. 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. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. Privacy policy Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. 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. By becoming a supporter, you'll be helping us expand our independent journalism for the business community. His leadership is underpinned by a strong belief in Mainfreights global competency and capabilities to provide high-quality supply chain solutions for our customers. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . Its a huge level of success and theres satisfaction you get from that. What have we got right? Zac: Can you share more about your profit share? Your email address will not be published. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". 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. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. So I think cashflow is king and Id be focused on that. I learned that early in the piece and I think its stood me in good stead. That's ambitious, even . Save my name, email, and website in this browser for the next time I comment. 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. Rob Fyfe Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. Other Current Significant Directorships and Trusteeships: BUPA ANZ Pty Limited (Chairman), Adherium Limited, Clearspan Limited, Thinxtra Australia, Starship Foundation, Massey University Foundation. His father was a truck driver, but he says that didn't influence his career decisions. 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. 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. 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. What do those customers look for from us? 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. So take a peek at this free list of interesting companies. So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. Who wouldnt want exposure to the retirement sector? Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. Photo / Supplied . Don: The culture is really important and our culture starts with those closest to the customer. Were thinking about being around for a hundred years. Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. 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. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. To trust your people too, to give them the responsibility. 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. 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. After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. Contact. What else do we need to do to satisfy that bunch of customers? Don from Mainfreight talks to Fisher Funds. Don Braid. So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. 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. Other Current Directorships: Member of the CFO Advisory Board, Auckland University Business School, Member of the Board of Trustees of Dress for Success Incorporated, and private family companies. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Other Current Directorships: Zac: Lets talk more about those weekly P&Ls. Weekly operational reports are posted on the wall of the company cafeteria in Otahuhu, where all team members, including Braid, eat at a single, long table. Sam Knowles 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? It is totally how I believe a company should be and I love how everyone starts at the bottom. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. Don: The recruitment of our people sits with the branch managers. 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. enter your email and well send you details. Boards have a key role to play in the wake of any crisis. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. "Don gave this glowing account of [Daily Freightways] and I kept looking at him and thinking 'what a lot of bullshit'," Plested says. 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. 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. Whats changed? He is fiercely proud of the Mainfreight culture seeing this as a key reason customers choose Mainfreight over the competition. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. Get in touch with us directly. JUDGES COMMENTS If you trust your people, look after them and give them responsibility, theyll deliver. "He implements things very well and you don't have to remind him about anything you're trying to achieve. He attributed the. Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. 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 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. So the weekly P&L puts them on the spot. Even Europe's ongoing economic turmoil fails to dampen Braid's optimism, despite the Kiwi logistics operator having spent more than $200 million buying a Netherlands-based freight firm earlier this year, giving it a European footprint for the first time in its more than three-decade history. 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. 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. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. Early on, New Zealand had great lessons to take to the rest of our network. 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. Don: Um, I think its recognising good people. We use functional and analytical cookies on our website to offer an optimal user experience. 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.. His company has been a shining example of success amid tough global economic conditions. 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. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. Youve got to have good outlets. 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). +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. Group Managing Director at Mainfreight NZ . They love this as it makes them feel supported and that I understand their role. While many of its NZX-50 peers have entered a period of stagnation, Mainfreight - it seems - thrives on hard times. 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. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. It remains a very exciting journey., Spearheading the management team at New Zealands largest supply chain logistics and transport company has paid off handsomely for, 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. 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. Don: Im not sure its stress. Our subscriptions start at $24 / month for individuals. 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. And then its about exploring the long game. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. 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 includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . Since the acquisition of the Wim Bosman Group the eurozone has spiralled to the brink of economic disaster, but 52-year-old Braid says doing business on the debt-ravaged continent is nothing other than an "exciting" prospect. Concerned about the content? 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. 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. "I don't think any of those things are really of interest to this," he says. It only represents a small part of our revenue, but . Early in the piece at Mainfreight, leaders are given responsibility, so the ability to take responsibility and to make decisions is pretty important. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. 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. You cant see yourself as an employer of 8500 people. 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. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. Mainfreight's net profit rose by $40.1m to $188.1m. How do you maintain a positive culture and a time of crisis? 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. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. We're trying to break all that down.". How does that actually work, practically? I think the only measure of whether weve got the culture right will be seen in the numbers and in the customer service. See ourstandard terms and conditionsfor more information. Check out our latest analysis for Mainfreight. You can be profitable and not collect the cash and go broke. Musk Made a Mess at Twitter. BusinessDesk has a paywall for most of its content. 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. I think our owner drivers are a key component of the relationship with the customer. FINALIST What we put in place here in New Zealand became the blueprint for the organization around the world. He owns a 3 per cent stake in the firm, worth about $29 million. We offer lots of training as well, internally and externally. 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. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? The company also noted Brexit issues between the UK and Europe remained a cause of frustration, particularly since January, resulting in considerable delays to freight on the back of more complicated customs formalities. Youve got to break it down. What are the things you do that maybe others dont do that actually make you lead this organization? And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. Some of the leading players in the listed retirement sector have been raising capital. The key for me is to be in the business as much as possible, to be visible. 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. Subscribe to protect quality NZ journalism. What havent we got right? 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. "That gives us an enormous amount of opportunity.". 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. 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 we are developing our people to be the best they possibly can be. 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. Chosen from New Zealand's top companies, this year's Deloitte . And thats why we travel a lot when you visit, you can smell the morale in an instant. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. Us taking away that clock was about responsibility and about taking away that control from head office. "He's sporting and tough and makes decisions quite fast," Plested says. "He never talks about himself and always talks about long-term goals," Hunt says. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. Don Braid is a Group Managing Director at Mainfreight NZ based in Mangere, . I suppose were grooming people all the time for those loaded leadership roles. Its having empathy and I think Im patient, determined, have belief and energy. Theyre all networked, but theyre all distanced so we knew we needed to communicate really well with them and have a blueprint that we know would work. In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. For further information, please contact Don Braid, Group Managing Director, telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com. "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.". Don: Its been interesting! Don Braid's Phone Number and Email Last Update. [3][4], When the company was founded it entered a highly regulated transport market. 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. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. 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. Regrettably, registration fees cannot be refunded when cancellations are received within two working days prior to any branch event. 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. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. 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. Insurers support an immediate managed retreat for recent flood victims. 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. | As you get bigger, staff engagement and culture becomes more difficult. Mainfreight's straight-talking group managing director has an infectious zest for business. Watson said she did not believe bonuses were a way. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. The company is growing EPS and total shareholder returns have been pleasing. You may withdraw your consent at any time. [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. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. Where do we need to be? 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. 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.
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