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This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. Filed Under: Blog, Business coaching, Motivation coming at ya, What a great interview and there are many excellent points which the Mainfreight CEO covered like Empathy which is essential when supporting all those involved in Mainfreights success and another dealt with the importance of making sure all invoices are paid on time. 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. Getting decisions made as close to the customer as possible is probably our secret and giving that responsibility to those in the branches. That was uppermost in our mind. Mainfreight's straight-talking group managing director has an infectious zest for business. Engage via Email. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. Indonesia ups trade potential with focus on corporate governance, NZ business needs to invest more in reputation, NZ corporates taking a lead in health & safety. 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. As a young salesperson aged 19, I couldnt make a cold call. Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. d***@mainfreight.com. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. 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. 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. | Mainfreight half year net profit lifts 79 per cent despite supply chain By the way, its not just about us seeing those numbers. Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. Business Leader of the Year 2011 Winner: Don Braid - NZ Herald Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. As you get bigger, staff engagement and culture becomes more difficult. Mainfreight declares flat dividend, hands back $11m wage subsidy At Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. Save my name, email, and website in this browser for the next time I comment. Read More . Mainfreight Limited is a New Zealand logistics and transport company headquartered in Auckland. Previously, Don was a Political Columnist at Calgary Herald. [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. We've identified 1 warning sign for Mainfreight that investors should be aware of in a dynamic business environment. Don from Mainfreight talks to Fisher Funds. I think with a driverless truck, well lose that ability of interaction with the customer on pickup or on delivery. Today he chairs a group of telecommunication companies. Pot vote has Oklahoma hungry to rake in green from Texas, How Ron DeSantis misreads Corporate America, Tesla recalls 3,470 Model Y vehicles over loose bolts, 3 big things in investing you might have missed this week, UPDATE 1-North Korea says US causing international arms control collapse. Id also be really focused on being in touch with customers. In 2003 Mainfreight bought Owens Group, one of New Zealand's largest trucking firms. WINNER 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. "He never moans about the currency and is always positive.". In light of current trends, we will provide a nine-month trading update mid-February 2022. Contact. Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. Don: It should be where your skills are. For more information, please visit our cookie statement. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. 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, with businesses operating in over 214 branches throughout New Zealand, Australia, Europe, Asia and the United States. 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. 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. Our subscriptions start at $24 / month for individuals. 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. He is unquestionably our Deloitte/Management magazine Top 200 Executive of the Year. You can follow him on Twitter, New tourism plan sidesteps immigration elephant, Mortgage arrears up as rates start to bite, Investors queue up ahead of Du Val liquidity events, Affordable housing levy sparks fear and loathing in Queenstown. 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. 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. The price of the rights fell as low as 7.5 cents on the last day of trading. [4] This operation was expanded with depots in Melbourne and Brisbane. For further information, please contact Don Braid, Group Managing Director, telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com. His intellect and pragmatic approach is highly regarded at the Board table. Target has offices in 35 cities throughout the United States and an international network of agents in over 70 countries.[15]. Mainfreight people, he says, don't "live in question marks". Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. 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). He is an outstandingly consistent and capable chief executive. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. So everything that we do is about being here for a long time. So you need to make sure youve got succession planning to be able to work on the dream that youre creating. Brent is a senior reporter based in Queenstown. See guidance for chairs and directors. Offices are outlawed, even for Braid, whose desk is situated in the corner of a large, open-plan room occupied by the company's national team. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . So the idea was to make sure that our people were right, that our systems were ok, what customers could trade, and how we could help those customers as an essential service. Bryan has a wealth of experience, both in executive and board roles. Don Braid, Mainfreight Ltd: Profile and Biography - Bloomberg Markets 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. 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. Mainfreight managing director Don Braid. 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. 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. 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. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. 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 the individuals responsibility to arrive on time and stay until the jobs finished. Mainfreight Half Year Financial Results 30 September 2021 - NZX Your email address will not be published. Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. But they had different regulations for different countries: it was a metre between the two trucks, it was a metre and half in Belgium, and it was two meters in France. It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. Will His AI Plans Be Any Different? Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. 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. Another attribute is straight talking. This endeavor launched the first permanent investment into South America. And then its about exploring the long game. People thrive on being given responsibility. Chief executive, Mainfreight Don Braid of Mainfreight Limited presents key insights for directors about freight and supply chain patterns in the current climate. I really want to be in front of those customers! 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. 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. See ourstandard terms and conditionsfor more information. Do also serves as a member of the Board of the Starship foundation. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. "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.". As a Government Minister, Richard was responsible for creating SOEs, deregulating telecommunications and broadcasting, reforming ports, airports, railways and aviation. Learn more. 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. The Biosecurity Business Pledge group has launched two new biosecurity guides. Don: Um, I think its recognising good people. Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. Then we got some momentum and we saw some of the other regions doing better than what we thought so we felt better about it. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. I feed off that and suppose the people in our business like seeing that and see it as an example and follow. "He implements things very well and you don't have to remind him about anything you're trying to achieve. Biography Email. Copyright 2023 Institute of Directors Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. Don: Well, the numbers never lie, right? We aim to bring you long-term focused analysis driven by fundamental data. "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. Mainfreight's net profit rose by $40.1m to $188.1m. 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. 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.". Group Managing Director, Mainfreight. 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. 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. | 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. 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. How Does Don Braid's Compensation Compare With Similar Sized Companies? That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. 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. If you'd invested $20,000 in Mainfreight 20 years ago and reinvested your dividends, your investment would now be worth $1.3 million. After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. Formerly Halford Young, Halford is a private logistics company and freight forwarder with operations and networks in Australia and New Zealand, Japan, Germany, throughout Asia and the United States.[6]. He owns a 3 per cent stake in the firm, worth about $29 million. BusinessDesk has a paywall for most of its content. Thanks Mr Braid for sharing your knowledge and insight. See the full transcript below. Well in Europe they had these time clocks. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. 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. Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. 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. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. Theres no bullshit in the numbers, they are what the business has earned. As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. 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. Rob Fyfe 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. So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? Whilst describing the foundation of Mainfreight in 2000, Plested said to the New Zealand Herald, "We moved all our freight by sea between Auckland, and Christchurch and Dunedin, and we worked weekend shifts to make sure we loaded and unloaded the ship using the whole of the seven days - we found that was faster and more reliable than our big competitors."[4]. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. 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. [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. 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. So I think cashflow is king and Id be focused on that. I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. Zac: What is the Mainfreight way when it comes to culture? Wed rather own assets than lease them. [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. 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. In his results commentary, Braid said the results were pleasing in light of initial supply chain disruptions during the early part of the year, on the back of lockdowns in response to the global pandemic. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. Who wouldnt want exposure to the retirement sector? I think our owner drivers are a key component of the relationship with the customer. Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. Cash flow is essential for any business survival. Mainfreight - Wikipedia Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . To join your company account for BusinessDesk and enjoy full access, Its an intimate touch with the P&L; the weeklies tell us lot. 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. Some people dont want any more responsibility they find their own ceiling and thats fine. Whats changed? Don Braid - Group Managing Director - Mainfreight NZ | ZoomInfo We offer lots of training as well, internally and externally. A licence from New Zealand Railways Corporation was needed to carry freight over 150km. Check out our latest analysis for Mainfreight. As Chairman and Founder, Bruce shares his vision for the Company with the Mainfreight team, bringing a particular focus to quality and our culture. 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. 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! This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. So long term, we have a really experienced leadership team. Wishing you the best in England and when you return to NZ. "That gives us an enormous amount of opportunity.". 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. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? 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.