Brent is a senior reporter based in Queenstown. Zac: What are your thoughts on driverless trucks and how they will affect Mainfreight? Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. Don Braid (Mainfreight) Credit: Mainfreight . Its an intimate touch with the P&L; the weeklies tell us lot. For me its being in the business, with people and in particular with customers. Don: The culture is really important and our culture starts with those closest to the customer. We offer lots of training as well, internally and externally. "I just think that's disgusting," he says. 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. Educated at Timaru Boys High School, Braid has been described as possibly the most self-effacing leader of major listed company in New Zealand and is widely regarded as straight-talking and strong leader. We ask our people to recruit very good people with passion and energy; people good enough to become branch managers. Learn more. Weve sort of tucked on the back of some trials in Europe and in the States where they were running in threes and fours behind each other, all connected by a computer. Mainfreight is publicly listed on the NZ Stock Exchange with a market capitalisation of $8+ billion. And he should know, having spent his entire working life in the freight industry. Don: Well, the numbers never lie, right? The company is on track to go close to the $2 billion mark in its current financial year, Braid says, having already posted an almost $900 million revenue for the six months to September. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. 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. Once we convinced them that they didnt need a time clock, they took to them with a sledgehammer. Its revenue is up 5.9% over the last year. And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. "That gives us an enormous amount of opportunity.". How does that actually work, practically? Your email address will not be published. I will definitely be following the Mainfreight progress closely for when I return to NZ. He previously worked for the Otago Daily Times, after a return to business journalism in 2018. I believe that I shouldnt ask my colleagues/work mates/ team to do any task I would not do myself or know how to do. This article by Simply Wall St is general in nature. See guidance for chairs and directors. In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. d***@mainfreight.com. 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. Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. He brings strong financial skills and business acumen to the role. Media enquiries New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . To join your company account for BusinessDesk and enjoy full access, Braid consistently delivers for shareholders and stakeholders alike. Simply Wall St has no position in any stocks mentioned.Have feedback on this article? As a young salesperson aged 19, I couldnt make a cold call. Its great fun. [14], In September 2007, it was reported by Business Wire that Mainfreight had signed a merger agreement with NYSE American-listed Target Logistics for $2.50 a share; for a total of US$54 million. "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.". | His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . 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 Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9.3% of the pie. 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. 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. Zac: Don, having a decentralized business, whats been your approach to leadership? 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. FINALIST 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. That's ambitious, even . And if you dont make a profit, theres no bonus that year. Email. 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. You need to have been there 12 months to earn the full bonus that everybody else gets. Everyone stands on their own two feet. His company has been a shining example of success amid tough global economic conditions. Your email address will not be published. "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. It is our strong belief that the momentum we have will continue, and will develop at a faster pace than we have experienced in the past, thanks to our people, our network and our culture. Director Profiles | New Zealand - Mainfreight Lessons from the Managing Director of one of NZ's most successful In 2008, the United States locations were re-branded as Mainfreight USA. 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. Mainfreight's $43.9m 'family' bonus | BusinessDesk 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. Nothing drives home the state of our roads like a trip on a bike. Mainfreight Limited is a New Zealand logistics and transport company headquartered in Auckland. 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. And then its about exploring the long game. 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. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. People thrive on being given responsibility. You may withdraw your consent at any time. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. The long-term effects must be carefully studied. Both are real legends and seem to really walk the talk. 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. We're trying to break all that down.". Weve got examples of that in our business right now. 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. 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. With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. Privacy policy The lawsuit claimed that Wim Bosman, the former owner, had prior knowledge of a large client, Giant Bicycles, intentions to end corporate ties with the group. And what do you believe leaders need to excel at? Its a huge level of success and theres satisfaction you get from that. Component 2020 See ourstandard terms and conditionsfor more information. Don: For us, its not about the short game, its about the long game. His father was a truck driver, but he says that didn't influence his career decisions. "You need some energy and you need to be on the front foot," he says. 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. You cant see yourself as an employer of 8500 people. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. Check out our latest analysis for Mainfreight. 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. [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. As you get bigger, staff engagement and culture becomes more difficult. 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. 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. On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. The key for me is to be in the business as much as possible, to be visible. What Can We Conclude About Mainfreight's (NZSE:MFT) CEO Pay? We will probably go back to normal but be ready to adapt, be flexible and look after your people theyll bring the answers to the table for you on what your business will look like in the future. Theres no cross subsidies. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. 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. 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. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Director Profiles - Mainfreight Sam Knowles After the full acquisition that took place August 2007, Mainfreight Asia quickly gained momentum in the Air and Ocean sector, driving business in China and Southeast Asia. He attributed the. [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. Should it change? Thats the key. You know, people arrive when they arrive and they leave when they leave. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. don@mainfreight.com; Profile. 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. 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: With this event in front of us right now, I think cash is king, and the collection of cash. 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. You can be profitable and not collect the cash and go broke. 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. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. What Can We Conclude About Mainfreight's (NZSE:MFT) CEO Pay? - Yahoo! Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. Read More . 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. Not bad for a Kiwi trucking company! 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. Hi Tanya. Zac: Don, your 100-year vision how does that work? Don from Mainfreight talks to Fisher Funds. 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. 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. 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. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. As Chairman and Founder, Bruce shares his vision for the Company with the Mainfreight team, bringing a particular focus to quality and our culture. 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. Will His AI Plans Be Any Different? Concerned about the content? "It's not about what I've done - it's about what we've done and what the business has done," he says. Typically modest about his achievements, the 57-year-old is always quick to acknowledge the team effort behind Mainfreights success. It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. 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. 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. 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. "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. Its the individuals responsibility to arrive on time and stay until the jobs finished. How we can fix New Zealand's ports - Don Braid | BusinessDesk DCB had a staff base of five employees on the date of acquisition, however, staff was expected to rise to seven employees. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? 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. Chief executive, Kiwibank Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. Mainfreight people, he says, don't "live in question marks". So I think cashflow is king and Id be focused on that. 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. 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. 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. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. 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. [7] This takeover was in response to the purchase of Tranz Rail by Australian transport firm Toll Holdings. Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. Though his father was a truck driver, Timaru-born Braid cant recall being influenced by this. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? Zac: Don, what makes you good? 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. How do you measure this? I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. 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. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. How Does Don Braid's Compensation Compare With Similar Sized Companies? "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". So long term, we have a really experienced leadership team. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. So you need to be committed for the long term.The clich about the beach, the BMW and the boat it looks pretty attractive after 10 years of hard work but what could you have created after a hundred years and have you got something thats a bit special?I think you need passion, energy, belief and the ability to develop people to run the business for the future. He is unquestionably our Deloitte/Management magazine Top 200 Executive of the Year. BRAID, Don - NBR | The Authority since 1970 Mainfreight declares flat dividend, hands back $11m wage subsidy He believes in fostering an innovative culture in the organisation and encourages top performances from his teams. Early in the piece at Mainfreight, leaders are given responsibility, so the ability to take responsibility and to make decisions is pretty important. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. "We've been in China for 20 years. It doesnt matter what the worlds thrown at them, theyve shown they are capable of dealing with it. 'Ready, fire, aim' is Mainfreight man's mantra | Stuff.co.nz Zac: Whats a bit of business advice you can share? For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. 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. The firm has earned a reputation within the market for being slickly-run. Experts say community investment is the future. I suppose were grooming people all the time for those loaded leadership roles. They know that now and can alter those decisions as they head into the week in front of them. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. 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. Braid has earned a reputation within the market as a straight talker and one of the most effective NZX-50 bosses. 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. Richard Prebble is by profession a lawyer. Im not sure well see driverless trucks in NZ for some time to come. For us its about pushing the decision-making as close to the customer as possible, getting those people to make decisions rather than pushing them upstairs for someone else to make. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? Who wouldnt want exposure to the retirement sector? He owns a 3 per cent stake in the firm, worth about $29 million. Well in Europe they had these time clocks.
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