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. We aim to bring you long-term focused analysis driven by fundamental data. I dont believe that. 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! 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. "I just think that's disgusting," he says. You need to have been there 12 months to earn the full bonus that everybody else gets. Media enquiries If you trust your people, look after them and give them responsibility, theyll deliver. 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. Chief executive, Kiwibank You can be profitable and not collect the cash and go broke. [3] [4] When the company was founded it entered a highly regulated transport market. 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. So take a peek at this free list of interesting companies. As you get bigger, staff engagement and culture becomes more difficult. Zac: Whats a bit of business advice you can share? 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. Thanks Mr Braid for sharing your knowledge and insight. Some people dont want any more responsibility they find their own ceiling and thats fine. "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.". Both are real legends and seem to really walk the talk. 2023: A year of trepidation unless you take control, Talking to 2022 Westpac Supreme Business Winner, Juliette Hogan, How Fix & Fogg are winning the hearts of Americans. Don: Well, the numbers never lie, right? "He's sporting and tough and makes decisions quite fast," Plested says. Will His AI Plans Be Any Different? This endeavor launched the first permanent investment into South America. I suppose were grooming people all the time for those loaded leadership roles. And thats that. 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. 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. The Asian business saw profits more than double to US$7m, driven by increases in market share and rate increases from both air and see freight, the firm said. 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. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. CEO compensation can have a massive impact on performance, but it's just one element. Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. Like most Kiwi business leaders, Braid is self-effacing and doesn't fancy talking to journalists about his life outside the company. 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. So a lot is about the long game. His father was a truck driver, but he says that didn't influence his career decisions. Don Braid of Mainfreight Limited presents key insights for directors about freight and supply chain patterns in the current climate. The Biosecurity Business Pledge group has launched two new biosecurity guides. 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 By using this website you consent to the use of cookies in accordance with our privacy policy. I think our owner drivers are a key component of the relationship with the customer. Don Braid (Mainfreight) Credit: Mainfreight . In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. Privacy policy The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. So everything that we do is about being here for a long time. He is unquestionably our Deloitte/Management magazine Top 200 Executive of the Year. His leadership is underpinned by a strong belief in Mainfreights global competency and capabilities to provide high-quality supply chain solutions for our customers. So you need to make sure youve got succession planning to be able to work on the dream that youre creating. If were going to build facilities for our people, we build very good facilities to be around for a long time. But the excitement is justified. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. 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. Don Braid is Managing Director/CEO at Mainfreight Ltd. See Don Braid's compensation, career history, education, & memberships. The firm has earned a reputation within the market for being slickly-run. He attributed the. 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. 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. 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. As a Government Minister, Richard was responsible for creating SOEs, deregulating telecommunications and broadcasting, reforming ports, airports, railways and aviation. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? Chief executive, Mainfreight Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. Youve got to have good outlets. We dont call them staff for us, they are our people or our team. 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. Net capex totaled $155m for the period, of which land and buildings accounted for $111.7m, plant and equipment $26.6m and IT at $16.7m. 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 note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. Us taking away that clock was about responsibility and about taking away that control from head office. Mainfreight is a truly brilliant organization who sees all staff and their Franchises businesses as friends not employees. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. While there was someone in the drivers seat, the computer took over the vehicle. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . People thrive on being given responsibility. Look after our people, look after our customers, guard our cash, and embrace the opportunities that may arise.. "If you allow the recession to roll over the top of you there's a great chance it will.". 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. 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. Though his father was a truck driver, Timaru-born Braid cant recall being influenced by this. 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. So the weekly P&L puts them on the spot. They know that now and can alter those decisions as they head into the week in front of them. The price of the rights fell as low as 7.5 cents on the last day of trading. 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. 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. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. Chief executive, Air New Zealand That's just a smallish increase of 6.9% on last year. BusinessDesk has a paywall for most of its content. Any enquiries, or to book a table, please emailNatalie Spratt, Auckland Branch Coordinator. This is vitally important for all business to remain financially viable and it is where more than often we see business failures and especially in the Building Construction Industries which I was involved in. 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 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. 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. Its having empathy and I think Im patient, determined, have belief and energy. Please note that with cookies disabled you will have a degraded experience with some features. For more information, please visit our cookie statement. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. Don: Um, I think its recognising good people. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. "I don't think any of those things are really of interest to this," he says. 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. Simon has a long association with Mainfreight having served as the Companys main adviser for acquisitions, debt structure and other matters since 2003 (through Grant Samuel & Associates), prior to joining the Mainfreight Board. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . How do I gain more customers? 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. But, he said, the groups response at the outset of the pandemic had been unequivocal. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. 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. 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. When it comes to capable, motivational and effective leadership Sam Knowles delivers with interest. 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. 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. 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. Zac: Don, what makes you good? Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. How does that actually work, practically? Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. They love this as it makes them feel supported and that I understand their role. Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. Other Current Directorships:
He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. 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. So each person can earn some more money by not just making profit, but keeping customers happy, keeping claims to a lower amount, making sure were collecting cash, making sure that were delivering freight in full and on time but the base bonus, everybody gets the same amount no matter whether youve been there for one year or for 40 years and no matter what your position is. "You need some energy and you need to be on the front foot," he says. Don: With this event in front of us right now, I think cash is king, and the collection of cash. We use functional and analytical cookies on our website to offer an optimal user experience. "There's no bureaucracy or hierarchy or superiority in the business. Mainfreight managing director Don Braid. 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. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. Mainfreight has international operations in the United States through CaroTrans International and most recently Mainfreight International businesses after the 2007 acquisition of Target Logistics, in Asia (nine branches in China, one each in Taiwan, Singapore and Hong Kong). It doesnt matter what the worlds thrown at them, theyve shown they are capable of dealing with it. The firm's shares have been one of the best performing stocks on the NZX, returning more than. 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. Mainfreight's straight-talking group managing director has an infectious zest for business. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. Don from Mainfreight talks to Fisher Funds. As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. 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. And if you surround yourself with really good people, the stress is actually spread across everybody and you dont wear it all on your own shoulders. 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. Mainfreight people, he says, don't "live in question marks". 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. 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). Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. 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. Boards have a key role to play in the wake of any crisis. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. Watson said she did not believe bonuses were a way. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. 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. Group Managing Director, Mainfreight. And what do you believe leaders need to excel at? Don has over 40 years experience in the freight industry, including 26 with Mainfreight. Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. They couldnt believe we trusted them to turn up when we needed them to turn up and leave when we needed them to leave. Insurers support an immediate managed retreat for recent flood victims. 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.". In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. He is an outstandingly consistent and capable chief executive. | "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. 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. Early on, New Zealand had great lessons to take to the rest of our network. 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. 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. 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. 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. Getting decisions made as close to the customer as possible is probably our secret and giving that responsibility to those in the branches. Nothing drives home the state of our roads like a trip on a bike. 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. Terms of use [11], Since 2011, Mainfreight, under the Wim Bosman name, have opened new branches in Bergen op Zoom in The Netherlands, Cluj-Napoca in Romania, Frankfurt and Gelsenkirchen in Germany, London in United Kingdom, and Pozna/Lubo in Poland. Wed rather own assets than lease them. Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. Photo / Supplied . 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 NBR Working Style Best Dressed Businessman Awards. In 2008, the United States locations were re-branded as Mainfreight USA. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. By becoming a supporter, you'll be helping us expand our independent journalism for the business community. Richard Prebble is by profession a lawyer. We were lucky enough to have a really incredible chat with Mainfreight CEO Don Braid about what he has learnt as the CEO of Mainfreight. 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. New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. Your email address will not be published. To trust your people too, to give them the responsibility. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. Save my name, email, and website in this browser for the next time I comment. Were thinking about being around for a hundred years. Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. 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. 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. Where do we need to be? It has been listed on the New Zealand Exchange since 1996. Im not sure well see driverless trucks in NZ for some time to come. Concerned about the content? WINNER I dont see this as a job, so therefore the stress levels arent as strong. Your Saturday Briefing: Trumps Comeback Plan, Wall Street Whistles Away, Londons Investment Appeal Is Unraveling as Arm Heads to the US, British Parents Turn to Home Equity to Help Young Buy Property, Japanese Unions Seek Biggest Pay Rise in 25 Years for Workers, Sorry, Fed, Most US Mortgage Rates Were Locked In During Pandemic Lows, Panic Over Metals for EVs Goes All the Way to Automakers C-Suites, Ex-Goldman Banker Ordered to Forfeit $43.7 Million Over 1MDB Bribery Fraud, Twitter Revenue, Earnings Fell About 40% in December, WSJ Says, John Malone andCharter Directors Agree to $87.5 Million Settlement, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, Between Rounds of Golf, Trumps Searching for the Perfect DeSantis Diss, Your Saturday UK Briefing: Sunak Chalks Up a Win as the Budget Looms, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, Tom Sizemore, 'Saving Private Ryan' Actor, Dies at 61, The Exhibit Reality TV Show PittingArtist Against ArtistIs No Masterpiece. Don: I get out of the way. Not living as a question mark but instead getting on with it and making those decisions.
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