He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . 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. [13] The transaction was completed on 6 June 2007. 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. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. As a Government Minister, Richard was responsible for creating SOEs, deregulating telecommunications and broadcasting, reforming ports, airports, railways and aviation. BusinessDesk has a paywall for most of its content. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. "You need some energy and you need to be on the front foot," he says. Agreement with print tech giant Canon saves college thousands. And analysts have been warned that they "won't get a second interview" if they make that mistake of calling Mainfreight a "trucking company". Typically modest about his achievements, the 57-year-old is always quick to acknowledge the team effort behind Mainfreights success. Don: Um, I think its recognising good people. Mainfreight Limited is a New Zealand logistics and transport company headquartered in Auckland. I think the only measure of whether weve got the culture right will be seen in the numbers and in the customer service. Those are the real world indicators of whether youve got morale correct or not or whether youve got some issues going on you need to address. Everyone stands on their own two feet. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. Where do we need to be? People thrive on being given responsibility. To join your company account for BusinessDesk and enjoy full access, So it doesnt matter whether youre loading freight, taking customer service calls, out making sales calls, or an operations transport manager, you understand those disciplines early on in the piece. 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! New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. This information will be used to measure the effectiveness of our advertising from various channels and to offer you personalised ads. BRAID, Don - NBR | The Authority since 1970 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. 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. 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.. 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? So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. 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. What else do we need to do to satisfy that bunch of customers? And sometimes, particularly so in New Zealand, they see the market ultimately being as quite small, when in fact their product or service is good enough to take to the world. Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. Theres a video of it happening and what was really exciting was once the clock came off the wall, you could hear the laughter and the clapping and the voices of approval from those who were watching. Simply Wall St has no position in any stocks mentioned.Have feedback on this article? Any enquiries, or to book a table, please emailNatalie Spratt, Auckland Branch Coordinator. Out of that, I think weve got the culture really starting to develop. | Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. Email. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". 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. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. "It's not about what I've done - it's about what we've done and what the business has done," he says. 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. Don Braid is Managing Director/CEO at Mainfreight Ltd. See Don Braid's compensation, career history, education, & memberships. Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. 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. I think with a driverless truck, well lose that ability of interaction with the customer on pickup or on delivery. He believes in fostering an innovative culture in the organisation and encourages top performances from his teams. How do you maintain a positive culture and a time of crisis? Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. Mainfreight boss: China 'understands our value' - NZ Herald In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. Thats the key. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. don@mainfreight.com; Profile. Some people dont want any more responsibility they find their own ceiling and thats fine. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Im not sure well see driverless trucks in NZ for some time to come. Its an intimate touch with the P&L; the weeklies tell us lot. National's three waters policy is only cosmetically distinct from Labour's. 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. 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. That's just a smallish increase of 6.9% on last year. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. You know, people arrive when they arrive and they leave when they leave. 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. 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. 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. 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. 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. [7] This takeover was in response to the purchase of Tranz Rail by Australian transport firm Toll Holdings. Lessons from the Managing Director of one of NZ's most successful What Can We Conclude About Mainfreight's (NZSE:MFT) CEO Pay? - Yahoo! Breakfast with Don Braid, Mainfreight Ltd | IoD NZ The Group MD & Director of Mainfreight Limited (NZSE:MFT), Donald Braid "There's no bureaucracy or hierarchy or superiority in the business. Don: The culture is really important and our culture starts with those closest to the customer. Some of the leading players in the listed retirement sector have been raising capital. Don: With this event in front of us right now, I think cash is king, and the collection of cash. This endeavor launched the first permanent investment into South America. That was uppermost in our mind. By the way, its not just about us seeing those numbers. Component 2020 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. Don Braid of Mainfreight Limited presents key insights for directors about freight and supply chain patterns in the current climate. Other Current Directorships: This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. Media enquiries 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. For further information, please contact Don Braid, Group Managing Director, telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com. And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. 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. Don Braid. [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. "I probably wasn't qualified enough to go to university," Braid says. Photo / Supplied . 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. Target has offices in 35 cities throughout the United States and an international network of agents in over 70 countries.[15]. And thats that. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. The opportunities offshore and the populations that exist in some of those other countries are large; you only have to get something half right in some of those countries and youre growing a big business compared to what you have here in New Zealand. Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys' High School and has over 43 years' experience in freight forwarding and logistics both New Zealand and internationally. What are the things you do that maybe others dont do that actually make you lead this organization? Don: I think its quite a long way off. See guidance for chairs and directors. 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. 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. [3][4], When the company was founded it entered a highly regulated transport market. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. Nothing drives home the state of our roads like a trip on a bike. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . Another attribute is straight talking. The relationships we develop, both with suppliers and with customers, are there for the long term. Q&A with Mainfreight's Don Braid - Business Changing Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. With well-established locations that include China, Hong Kong, Taiwan, Malaysia, Thailand, Vietnam, Singapore, Japan and Korea, the Mainfreight global network continues to expand year over year. Please note that with cookies disabled you will have a degraded experience with some features. And if you dont make a profit, theres no bonus that year. The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. Appointment to Board 2000 - With Mainfreight since 1994. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . 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. We've identified 1 warning sign for Mainfreight that investors should be aware of in a dynamic business environment. Get in touch with us directly. 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. | Bruce Plested, the firm's executive chairman who founded the company in 1978 with $7200 and a 1969 Bedford truck, recalls the day in 1994 when Braid - then a Freightways Group employee - had the job of pitching its Daily Freightways business to Mainfreight, which it acquired that year. "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. Braid has earned a reputation within the market as a straight talker and one of the most effective NZX-50 bosses. Zac: Lets talk more about those weekly P&Ls. 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. Chief executive, Mainfreight It only represents a small part of our revenue, but . He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . You may withdraw your consent at any time. In 2008, the United States locations were re-branded as Mainfreight USA. Alternatively, email editorial-team@simplywallst.com. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. And then its about exploring the long game. I'm pleased I didn't do anything else.". 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. He owns a 3 per cent stake in the firm, worth about $29 million. Hamish. So everything that we do is about being here for a long time. Once we convinced them that they didnt need a time clock, they took to them with a sledgehammer. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. The key for me is to be in the business as much as possible, to be visible. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. Once it became a global pandemic we needed to react and adapt as quickly as we could. 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. Whats changed? They have over 8500 staff in 280+ locations across 28 countries, so it was pretty cool (and humbling) for us to be able to chat to Don with some of our Business Changing clients recently. Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. So a lot is about the long game. Will be fundamentally different from the last one. [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. "He never moans about the currency and is always positive.". The long-term effects must be carefully studied. "I just think that's disgusting," he says. 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. 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. I dont see this as a job, so therefore the stress levels arent as strong. 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. So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? 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. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? How do I gain more customers? They know that now and can alter those decisions as they head into the week in front of them. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. Despite international growth and success, Braid is passionate about keeping the company proudly Kiwi-owned and has been an outspoken voice on local transport and infrastructure matters. 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. Both are real legends and seem to really walk the talk. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. Mainfreight people, he says, don't "live in question marks". 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. I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. Don Braid (Mainfreight) Credit: Mainfreight . 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. Mainfreight's net profit rose by $40.1m to $188.1m. When other international airlines are finding their wings clipped, this straight talking, and well regarded leader, has proved his point. 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. "He's sporting and tough and makes decisions quite fast," Plested says. We ask our people to recruit very good people with passion and energy; people good enough to become branch managers. Her knowledge of high-tech companies is a welcome addition to the Boards capabilities, as is her familiarity with the complexities of acquisitions, and steering companies through growth and change. Target operate domestic and international time-sensitive freight-forwarding and logistics services through its wholly owned subsidiary, Target Logistic Services. Insurers support an immediate managed retreat for recent flood victims. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. 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. Theres no bullshit in the numbers, they are what the business has earned. 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. 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. Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. Group Managing Director at Mainfreight NZ . 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. So the weekly P&L puts them on the spot. In the decade Braid has spent at its helm, the company has become a global logistics player with operations on every populated continent apart from Africa. Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. Richard Prebble is by profession a lawyer. 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. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. How Does Don Braid's Compensation Compare With Similar Sized Companies? But, he said, the groups response at the outset of the pandemic had been unequivocal. I will definitely be following the Mainfreight progress closely for when I return to NZ. Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. By becoming a supporter, you'll be helping us expand our independent journalism for the business community. Is our service or a product still current? 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. It has been listed on the New Zealand Exchange since 1996. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. Were thinking about being around for a hundred years. Zac: Can you share more about your profit share? 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. To trust your people too, to give them the responsibility. WINNER "He implements things very well and you don't have to remind him about anything you're trying to achieve. 11/5/2022 3:33 PM. 'Ready, fire, aim' is Mainfreight man's mantra | Stuff.co.nz 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. Zac: Don, having a decentralized business, whats been your approach to leadership? As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. Other Current Significant Directorships and Trusteeships: BUPA ANZ Pty Limited (Chairman), Adherium Limited, Clearspan Limited, Thinxtra Australia, Starship Foundation, Massey University Foundation. 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: The recruitment of our people sits with the branch managers. 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". Your email address will not be published. He is fiercely proud of the Mainfreight culture seeing this as a key reason customers choose Mainfreight over the competition. It is totally how I believe a company should be and I love how everyone starts at the bottom. He attributed the.

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