We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. Chosen from New Zealand's top companies, this year's Deloitte . [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. Im always exploring those opportunities and may be experimenting in particular regions or with particular customers before implementing that across the rest of the business. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. Bryan has a wealth of experience, both in executive and board roles. 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). 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. 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.. Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. Please note that with cookies disabled you will have a degraded experience with some features. 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. He knows where the company is going and, more importantly, how it will get there. So youre not only giving them a responsibility for the P&L, but youre also giving them the responsibility of whos going to join our family. So we are developing our people to be the best they possibly can be. Cash flow is essential for any business survival. I dont believe that. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. 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. Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. 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 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. Indonesia ups trade potential with focus on corporate governance, NZ business needs to invest more in reputation, NZ corporates taking a lead in health & safety. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. "If you allow the recession to roll over the top of you there's a great chance it will.". He attributed the. 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. If were going to build facilities for our people, we build very good facilities to be around for a long time. Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. 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. Mainfreight people, he says, don't "live in question marks". "He never talks about himself and always talks about long-term goals," Hunt says. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. 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. For me its being in the business, with people and in particular with customers. Don Braid. Zac: Can you share what some of the great ideas youve actually brought from overseas have been? Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. Zac: Don, what makes you good? 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. How do you measure this? So the weekly P&L puts them on the spot. So I think cashflow is king and Id be focused on that. Biography A table of ten booking is available for $1000.00, subject to availability at the time of booking. 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. After receiving the 2016 Infinz Leadership Award he told staff if this is a tick in the box for the way we have done things or are trying to do, and for what were trying to create, then well take that tick. Proud of its family ties, Mainfreight also employs Braids sons, Jason and Corey. 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. 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. You can be profitable and not collect the cash and go broke. 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. Founded in 1969 as Dunedin Customs Brokers Ltd, DCB International provides international air and sea freight services from Dunedin. It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. Braid says the Mainfreight culture and passion took hold pretty quickly, and Plested recognised his leadership strengths by appointing him to the board six years later. Appointment to Board 2000 - With Mainfreight since 1994. People thrive on being given responsibility. 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. His intellect and pragmatic approach is highly regarded at the Board table. 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. 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. "I just think that's disgusting," he says. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. Don Braid is a Group Managing Director at Mainfreight NZ based in Mangere, . Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. Don: The culture is really important and our culture starts with those closest to the customer. Regrettably, registration fees cannot be refunded when cancellations are received within two working days prior to any branch event. It only represents a small part of our revenue, but . Us taking away that clock was about responsibility and about taking away that control from head office. Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. His company has been a shining example of success amid tough global economic conditions. Learn more. [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. Group Managing Director, Mainfreight. 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. 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. Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. So weve got eight and a half thousand people and 282 locations. Nothing drives home the state of our roads like a trip on a bike. 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. 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. 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. Don: With this event in front of us right now, I think cash is king, and the collection of cash. What havent we got right? 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. The company is growing EPS and total shareholder returns have been pleasing. I think our owner drivers are a key component of the relationship with the customer. Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. 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. The government is pushing really hard for the major New Zealand companies to pay their suppliers on time, within 30 days. His leadership is underpinned by a strong belief in Mainfreights global competency and capabilities to provide high-quality supply chain solutions for our customers. When other international airlines are finding their wings clipped, this straight talking, and well regarded leader, has proved his point. Don: I get out of the way. Braid goes to great lengths to stress that the company's success is the result of the efforts of its entire, 5167-member "team" around the world. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. 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. 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. 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. Don: Well, the numbers never lie, right? In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. 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. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. Don: I think its quite a long way off. And analysts have been warned that they "won't get a second interview" if they make that mistake of calling Mainfreight a "trucking company". Will be fundamentally different from the last one. Chief executive, Mainfreight Zac: Can you share more about your profit share? 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. Chief executive, Kiwibank 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. Don: For us, its not about the short game, its about the long game. If you'd invested $20,000 in Mainfreight 20 years ago and reinvested your dividends, your investment would now be worth $1.3 million. The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. 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. JUDGES COMMENTS Youve got to break it down. 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! So a lot is about the long game. By using this website you consent to the use of cookies in accordance with our privacy policy. Check out our latest analysis for Mainfreight. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. 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. 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. 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. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . The key for me is to be in the business as much as possible, to be visible. Id also be really focused on being in touch with customers. I will definitely be following the Mainfreight progress closely for when I return to NZ. Its revenue is up 5.9% over the last year. Do also serves as a member of the Board of the Starship foundation. So you need to make sure youve got succession planning to be able to work on the dream that youre creating. 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. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. Its great fun. 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. 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. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. 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. 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. Musk Made a Mess at Twitter. Agreement with print tech giant Canon saves college thousands. 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. If theyre not on their game, you can see that really quickly so you either get alongside them and help them or if it goes on for too long you realise weve got the wrong person in the wrong role and weve got to change them. "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. And he should know, having spent his entire working life in the freight industry. He previously worked for the Otago Daily Times, after a return to business journalism in 2018. 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]. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. I really want to be in front of those customers! That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. [9], Within its announcement, the Mainfreight sad, "Wim Bosman is a well respected, profitable organisation which will provide Mainfreight with a significant European presence and opportunity to further grow its supply chain logistic services throughout the world. Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. I learned that early in the piece and I think its stood me in good stead. 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. Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. In 2008, the United States locations were re-branded as Mainfreight USA. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. While there was someone in the drivers seat, the computer took over the vehicle. Whats changed? Youve got to have good outlets. We're trying to break all that down.". Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. "That gives us an enormous amount of opportunity.". 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 think I've always enjoyed business, from an early age, so to be involved like I am today has been great. The company posted record earnings and revenue for its last full year and has continued to break records this financial year. You need to have been there 12 months to earn the full bonus that everybody else gets. 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. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europes Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX. 11/5/2022 3:33 PM. Other Current Significant Directorships and Trusteeships: BUPA ANZ Pty Limited (Chairman), Adherium Limited, Clearspan Limited, Thinxtra Australia, Starship Foundation, Massey University Foundation. Both are real legends and seem to really walk the talk. Hi Tanya. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. enter your email and well send you details. Zac: Whats a bit of business advice you can share? Zac: What is the Mainfreight way when it comes to culture? By the way, its not just about us seeing those numbers. 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. They know that now and can alter those decisions as they head into the week in front of them. 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. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. "He never moans about the currency and is always positive.". 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. 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. Copyright 2023 Institute of Directors 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. And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. This endeavor launched the first permanent investment into South America. "It's not about what I've done - it's about what we've done and what the business has done," he says. Weve got examples of that in our business right now. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. 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. PO Box 65092, Mairangi Bay, Auckland, New Zealand, Top 200 : Deloitte/Management magazine Executive of the Year Don Braid Clear Vision. 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. Is our service or a product still current? 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. Engage via Email. To join your company account for BusinessDesk and enjoy full access, 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. "He's sporting and tough and makes decisions quite fast," Plested says. COVID-19 has had a significant impact on freight and supply chains worldwide. 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 light of current trends, we will provide a nine-month trading update mid-February 2022. [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. 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. 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. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? "He implements things very well and you don't have to remind him about anything you're trying to achieve. Of course, you might find a fantastic investment by looking at a different set of stocks. Don: Its been interesting! 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. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. Concerned about the content? I think with a driverless truck, well lose that ability of interaction with the customer on pickup or on delivery. Terms of use Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. 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. CEO compensation can have a massive impact on performance, but it's just one element. Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald.