Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. Learn more. The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. 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. Mainfreight's net profit rose by $40.1m to $188.1m. Chief executive, Air New Zealand So it looks like Mainfreight compensates Don Braid in line with the median for the industry. [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. Its an intimate touch with the P&L; the weeklies tell us lot. PO Box 65092, Mairangi Bay, Auckland, New Zealand, Top 200 : Deloitte/Management magazine Executive of the Year Don Braid Clear Vision. His father was a truck driver, but he says that didn't influence his career decisions. In light of current trends, we will provide a nine-month trading update mid-February 2022. Founded in 1969 as Dunedin Customs Brokers Ltd, DCB International provides international air and sea freight services from Dunedin. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". [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. And what do you believe leaders need to excel at? Weve needed to adjust, particularly in the international sector, air freight charters rather than just normal air freight our people had never had any experience in chartering a full plane. Don: It should be where your skills are. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for our customers. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. In April 2007, Mainfreight announced its intentions to sell its Pan Orient Project Logistics business and its 75% interest in Lep Australia and New Zealand to global logistics company Agility Group for A$83 million. We're trying to break all that down.". BusinessDesk has a paywall for most of its content. Well in Europe they had these time clocks. 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 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). Some people dont want any more responsibility they find their own ceiling and thats fine. 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. 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. We applaud that; weve always paid every supplier on the 20th of the month following and we ask the same of our customers. Group Managing Director at Mainfreight NZ . Read More . It is totally how I believe a company should be and I love how everyone starts at the bottom. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. Zac: Can you share more about your profit share? You know, people arrive when they arrive and they leave when they leave. As you get bigger, staff engagement and culture becomes more difficult. How Does Don Braid's Compensation Compare With Similar Sized Companies? 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. Concerned about the content? 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. Don Braid. Nothing drives home the state of our roads like a trip on a bike. To join your company account for BusinessDesk and enjoy full access, In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. 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. So weve got eight and a half thousand people and 282 locations. Everyone stands on their own two feet. Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. As a young salesperson aged 19, I couldnt make a cold call. And then its about exploring the long game. If you trust your people, look after them and give them responsibility, theyll deliver. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? How do I gain more customers? He believes in fostering an innovative culture in the organisation and encourages top performances from his teams. Weve made this article available for free. 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 joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . He is an outstandingly consistent and capable chief executive. The company is growing EPS and total shareholder returns have been pleasing. 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. So take a peek at this free list of interesting companies. Our subscriptions start at $24 / month for individuals. Agreement with print tech giant Canon saves college thousands. "If you allow the recession to roll over the top of you there's a great chance it will.". 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. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. I think our owner drivers are a key component of the relationship with the customer. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. "He never moans about the currency and is always positive.". That was uppermost in our mind. And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. What more could I be doing in the business to actually grow my revenues in these difficult times? 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. Subscribe to protect quality NZ journalism. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. At Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. What are the things you do that maybe others dont do that actually make you lead this organization? [4] This operation was expanded with depots in Melbourne and Brisbane. 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. Experts say community investment is the future. "He implements things very well and you don't have to remind him about anything you're trying to achieve. Other Current Significant Directorships and Trusteeships: BUPA ANZ Pty Limited (Chairman), Adherium Limited, Clearspan Limited, Thinxtra Australia, Starship Foundation, Massey University Foundation. This information will be used to measure the effectiveness of our advertising from various channels and to offer you personalised ads. "You need some energy and you need to be on the front foot," he says. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. Whats changed? We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. Plested says that within a few months of the firm's acquisition of Daily Freightways, which became Daily Freight under Mainfreight ownership, he came to recognise Braid's strengths. He has led the company in strengthening its global logistics business and ensuring an increased diversification of revenue streams across many countries, trade lanes and activities provides "That gives us an enormous amount of opportunity.". What havent we got right? Bryan has a wealth of experience, both in executive and board roles. 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. Target operate domestic and international time-sensitive freight-forwarding and logistics services through its wholly owned subsidiary, Target Logistic Services. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. 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. Its great fun. That's just a smallish increase of 6.9% on last year. Getting decisions made as close to the customer as possible is probably our secret and giving that responsibility to those in the branches. Youve got to have good outlets. Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. "We've been in China for 20 years. 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. So you need to make sure youve got succession planning to be able to work on the dream that youre creating. How do you measure this? Its a huge level of success and theres satisfaction you get from that. Please note that with cookies disabled you will have a degraded experience with some features. As Chairman and Founder, Bruce shares his vision for the Company with the Mainfreight team, bringing a particular focus to quality and our culture. What we put in place here in New Zealand became the blueprint for the organization around the world. So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. And he should know, having spent his entire working life in the freight industry. Appointment to Board 2000 - With Mainfreight since 1994. Any enquiries, or to book a table, please emailNatalie Spratt, Auckland Branch Coordinator. 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. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. I suppose were grooming people all the time for those loaded leadership roles. Don: The recruitment of our people sits with the branch managers. Zac: Don, if you owned your own SME business at the moment, what would you be focusing on going forward to be as successful as you could be under this environment? You may withdraw your consent at any time. Don: Its been interesting! 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. 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. As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. 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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. 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. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. 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. For more information, please visit our cookie statement. Mainfreight Limited is a New Zealand logistics and transport company headquartered in Auckland. Braid said that while Mainfreights people can be proud of the way they stood up to be counted, there would continue to be uncertainty with heavily congested supply chains continuing to affect the worlds freight lanes. This article by Simply Wall St is general in nature. don@mainfreight.com; Profile. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. If you'd invested $20,000 in Mainfreight 20 years ago and reinvested your dividends, your investment would now be worth $1.3 million. 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. I'm pleased I didn't do anything else.". Once we convinced them that they didnt need a time clock, they took to them with a sledgehammer. After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. Zac: How do you prioritise where to spend your time in a normal week? 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. Involved in the founding of Kiwibank before taking the top job, Knowles embraces challenge and thrives on delivering top results. Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. On the Money: Tim Boyd he's back; James Lee he's leaving, and more New drugs could end the worlds obesity epidemic, Big plus for NZ schools and govt agencies, Growing wealth through our cities growth, Insurers call on government to seize the day, Smoke, mirrors and delay Nationals three waters policy, Former CentrePort CEO Liz Ward joins KiwiRail board. Where do we need to be? Component 2020 I will definitely be following the Mainfreight progress closely for when I return to NZ. And if you dont make a profit, theres no bonus that year. So what you produce in terms of profitability is real. Should it change? Theres no bullshit in the numbers, they are what the business has earned. Other Current Directorships: Rapper, chef and author Action Bronson takes us on a journey from his early days at culinary school, to releasing critically acclaimed albums, to writing books, starring in TV shows and building an iconic brand around his favorite interests. Mainfreight people, he says, don't "live in question marks". You can be profitable and not collect the cash and go broke. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . How do you maintain a positive culture and a time of crisis? Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. His company has been a shining example of success amid tough global economic conditions. For me its being in the business, with people and in particular with customers. 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. [7] This takeover was in response to the purchase of Tranz Rail by Australian transport firm Toll Holdings. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. Contact. It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. 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.". Braid consistently delivers for shareholders and stakeholders alike. 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. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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. See ourstandard terms and conditionsfor more information. Out of that, I think weve got the culture really starting to develop. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. Musk Made a Mess at Twitter. Mainfreight is publicly listed on the NZ Stock Exchange with a market capitalisation of $8+ billion. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Photo / Supplied . In the 12 months to March 31, Mainfreight - which has been one of the top performing stocks on the NZX this year - posted record sales of $1.34 billion. I think the only measure of whether weve got the culture right will be seen in the numbers and in the customer service. I dont see this as a job, so therefore the stress levels arent as strong. 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. 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. So the weekly P&L puts them on the spot. Don has over 40 years experience in the freight industry, including 26 with Mainfreight. And analysts have been warned that they "won't get a second interview" if they make that mistake of calling Mainfreight a "trucking company". Some of the leading players in the listed retirement sector have been raising capital. See guidance for chairs and directors. Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. "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. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. 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. I guess whats annoying is that we have got to wait for an election year to get this kind of stuff. Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. 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. What are their requirements? Not bad for a Kiwi trucking company! 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. [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. 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 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. Aside from travel (usually), customers, and communicating with those in other countries I spend my time in front of our people and our leadership team, no matter where they are located. 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. 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. 11/5/2022 3:33 PM. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. Media enquiries [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. Don Braid. 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. 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. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. We dont call them staff for us, they are our people or our team. Although Plested remains the largest shareholder with a 16% stake worth $395m, Braid's more modest 2.79% stake is still worth about $70m - supplemented by annual remuneration of $2.2m in 2017. Mainfreight managing director Don Braid. [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. "There's no bureaucracy or hierarchy or superiority in the business. "He's sporting and tough and makes decisions quite fast," Plested says. 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. They love this as it makes them feel supported and that I understand their role. Of course, you might find a fantastic investment by looking at a different set of stocks. Mainfreight is a truly brilliant organization who sees all staff and their Franchises businesses as friends not employees. Don joined in 1994 and hes been on the board since 2000 and the CEO for a heck of a long time. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Your email address will not be published. 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

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