Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. 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. You cant see yourself as an employer of 8500 people. 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. 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. I think our owner drivers are a key component of the relationship with the customer. 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. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. An unabashed promoter of New Zealand success, he has an extensive background in the banking industry in New Zealand and Australia, with senior management experience in marketing, strategic planning, retail services and business development. So long term, we have a really experienced leadership team. Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? Chosen from New Zealand's top companies, this year's Deloitte . Simply Wall St has no position in any stocks mentioned.Have feedback on this article? "I think I've always enjoyed business, from an early age, so to be involved like I am today has been great. 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. At Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. 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. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? 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 company posted record earnings and revenue for its last full year and has continued to break records this financial year. We applaud that; weve always paid every supplier on the 20th of the month following and we ask the same of our customers. The company is growing EPS and total shareholder returns have been pleasing. 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. 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. 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. But the excitement is justified. Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. Learn more. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. Who wouldnt want exposure to the retirement sector? What we put in place here in New Zealand became the blueprint for the organization around the world. So we are developing our people to be the best they possibly can be. 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. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? Out of that, I think weve got the culture really starting to develop. Click on [Agree] or [Disagree] to accept or refuse cookies. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. 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 just think that's disgusting," he says. 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. 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). 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. Sam Knowles Media enquiries 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. 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. "He's sporting and tough and makes decisions quite fast," Plested says. Subscribe to protect quality NZ journalism. 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. Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. Don: The recruitment of our people sits with the branch managers. Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. [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. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. Of course, you might find a fantastic investment by looking at a different set of stocks. If were going to build facilities for our people, we build very good facilities to be around for a long time. Don has over 40 years experience in the freight industry, including 26 with Mainfreight. [9], Within its announcement, the Mainfreight sad, "Wim Bosman is a well respected, profitable organisation which will provide Mainfreight with a significant European presence and opportunity to further grow its supply chain logistic services throughout the world. But well and behold, were in the perfect position not a lot of debt, trading really well, coming off a really good financial year the year before. Copyright 2023 Institute of Directors 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. At the end of the day, the decisions they made will be seen in the weekly results. He believes in fostering an innovative culture in the organisation and encourages top performances from his teams. Bryan has a wealth of experience, both in executive and board roles. 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. His company has been a shining example of success amid tough global economic conditions. Mainfreight is publicly listed on the NZ Stock Exchange with a market capitalisation of $8+ billion. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. We dont call them staff for us, they are our people or our team. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. Youve got to break it down. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. I dont see this as a job, so therefore the stress levels arent as strong. 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. 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. "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. So a lot is about the long game. 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. What else do we need to do to satisfy that bunch of customers? For more information, please visit our cookie statement. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. "I don't think any of those things are really of interest to this," he says. On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. The firm's shares have been one of the best performing stocks on the NZX, returning more than. Educated at Timaru Boys High School, Braid has been described as possibly the most self-effacing leader of major listed company in New Zealand and is widely regarded as straight-talking and strong leader. 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. Zac: Whats a bit of business advice you can share? He attributed the. I guess whats annoying is that we have got to wait for an election year to get this kind of stuff. His leadership is underpinned by a strong belief in Mainfreights global competency and capabilities to provide high-quality supply chain solutions for our customers. DCB had a staff base of five employees on the date of acquisition, however, staff was expected to rise to seven employees. They know that now and can alter those decisions as they head into the week in front of them. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. That was uppermost in our mind. So the weekly P&L puts them on the spot. 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. "If you allow the recession to roll over the top of you there's a great chance it will.". Typically modest about his achievements, the 57-year-old is always quick to acknowledge the team effort behind Mainfreights success. 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. 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. I really want to be in front of those customers! Mainfreight's net profit rose by $40.1m to $188.1m. But, he said the first seven weeks of trading in the current year has been at similar levels to the past six months. To join your company account for BusinessDesk and enjoy full access, Thanks Mr Braid for sharing your knowledge and insight. Mainfreight's straight-talking group managing director has an infectious zest for business. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. 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, Plested was quoted as saying after Braid was selected as the 2011 Business Leader of the Year. If you'd invested $20,000 in Mainfreight 20 years ago and reinvested your dividends, your investment would now be worth $1.3 million. Zac: How do you prioritise where to spend your time in a normal week? "He implements things very well and you don't have to remind him about anything you're trying to achieve. He brings strong financial skills and business acumen to the role. 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. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. Don Braid's Phone Number and Email Last Update. Don: With this event in front of us right now, I think cash is king, and the collection of cash. What have we got right? 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. WINNER I learned that early in the piece and I think its stood me in good stead. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. 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. Your email address will not be published. Braid consistently delivers for shareholders and stakeholders alike. 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. 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]. Mainfreight shareholders would be similarly pleased. Engage via Email. Were not thinking about selling our shares, were not thinking of getting out when the goings good were here for the good and the bad so were preparing the business for that next 100 years. 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. Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. 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. 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. 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. What more could I be doing in the business to actually grow my revenues in these difficult times? 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? 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. 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. In 2008, the United States locations were re-branded as Mainfreight USA. 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. Concerned about the content? "You need some energy and you need to be on the front foot," he says. And if you dont make a profit, theres no bonus that year. 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. 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. Spearheading the management team at New Zealands largest supply chain logistics and transport company has paid off handsomely for Mainfreight group managing director Don Braid. When it comes to capable, motivational and effective leadership Sam Knowles delivers with interest. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . How do I gain more customers? When other international airlines are finding their wings clipped, this straight talking, and well regarded leader, has proved his point. Please note that with cookies disabled you will have a degraded experience with some features. 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. Braid has earned a reputation within the market as a straight talker and one of the most effective NZX-50 bosses. 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. 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. Its having empathy and I think Im patient, determined, have belief and energy. Photo / Supplied . Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. Mainfreight is a truly brilliant organization who sees all staff and their Franchises businesses as friends not employees. 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! [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. Experts say community investment is the future. What are the things you do that maybe others dont do that actually make you lead this organization? 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. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. We offer lots of training as well, internally and externally. [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. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. Chief executive, Kiwibank 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. Grant Samuel & Associates Ltd. Kate brings to the Board her broad financial and analytical experience acquired in a range of industries, both in New Zealand and overseas. I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. | 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. Forsyth Barr analyst Rob Mercer said the market had confidence in Mainfreight after it managed to grow revenue and market share and outperform its peers during the global financial crisis. Don: With this decentralized approach, those P&Ls were talking about, theyre part of everyday life at Mainfreight those P&Ls go up on the cafeteria wall. Once it became a global pandemic we needed to react and adapt as quickly as we could. Check out our latest analysis for Mainfreight. As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. Today he chairs a group of telecommunication companies. This article by Simply Wall St is general in nature. "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. [4] This operation was expanded with depots in Melbourne and Brisbane. 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. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. He previously worked for the Otago Daily Times, after a return to business journalism in 2018. [7] This takeover was in response to the purchase of Tranz Rail by Australian transport firm Toll Holdings. 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. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. I dont believe that. [3][4], When the company was founded it entered a highly regulated transport market. 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. Your email address will not be published. He is unquestionably our Deloitte/Management magazine Top 200 Executive of the Year. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Don: The culture is really important and our culture starts with those closest to the customer. And he should know, having spent his entire working life in the freight industry. Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. Like most Kiwi business leaders, Braid is self-effacing and doesn't fancy talking to journalists about his life outside the company. 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. How Does Don Braid's Compensation Compare With Similar Sized Companies? Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. 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 NewZealand and internationally. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . Chief executive, Air New Zealand JUDGES COMMENTS FINALIST Founded in 1969 as Dunedin Customs Brokers Ltd, DCB International provides international air and sea freight services from Dunedin. 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. "We've been in China for 20 years. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. Watson said she did not believe bonuses were a way. 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). I suppose were grooming people all the time for those loaded leadership roles. 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. Early in my career I understood that I enjoyed the interaction with customers and in fact I enjoy the challenge of helping win new customers. 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. You may withdraw your consent at any time. If you trust your people, look after them and give them responsibility, theyll deliver. 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]. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. 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