[3] [4] When the company was founded it entered a highly regulated transport market. Director Profiles - Mainfreight Learn more. 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. 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. 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. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". 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. Lessons from the Managing Director of one of NZ's most successful Zac: Can you share more about your profit share? [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. Appointment to Board 2000 - With Mainfreight since 1994. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. Don Braid Save my name, email, and website in this browser for the next time I comment. Don has over 40 years experience in the freight industry, including 26 with Mainfreight. Don Braid. If were going to build facilities for our people, we build very good facilities to be around for a long time. 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. 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. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. 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. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. 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. Privacy policy Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. Please note that with cookies disabled you will have a degraded experience with some features. 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. [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. 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. Nothing drives home the state of our roads like a trip on a bike. So I think cashflow is king and Id be focused on that. What more could I be doing in the business to actually grow my revenues in these difficult times? We tackle critical leadership, management and economic issues as well as profiling successful local and global leaders. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. Zac: Lets talk more about those weekly P&Ls. They love this as it makes them feel supported and that I understand their role. 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. His father was a truck driver, but he says that didn't influence his career decisions. Revenues were up $448.4m to $3.5 billion, a 14.5% increase on the prior year, with 76% of that now generated outside New Zealand. I will definitely be following the Mainfreight progress closely for when I return to NZ. 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. The government is pushing really hard for the major New Zealand companies to pay their suppliers on time, within 30 days. Mainfreight's $43.9m 'family' bonus | BusinessDesk Our subscriptions start at $24 / month for individuals. 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. Typically modest about his achievements, the 57-year-old is always quick to acknowledge the team effort behind Mainfreights success. 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. 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. In the leadup to the 2017 election, Braid said the country needed to be run by visionaries rather than a couple of accountants and he took aim at Nationals pledge to spend an extra $2.6b on Auckland transport. Us taking away that clock was about responsibility and about taking away that control from head office. The Biosecurity Business Pledge group has launched two new biosecurity guides. 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. Experts say community investment is the future. 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. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Theyll have the Mainfreight culture, but itll have a little twist for example, the culture in Shanghai is different to the culture in Newark or the Netherlands or Sydney. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. 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. What Can We Conclude About Mainfreight's (NZSE:MFT) CEO Pay? Im not sure well see driverless trucks in NZ for some time to come. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. 5 November 2019 - Mainfreight's Don Braid has reinforced his reputation as one of New Zealand's most successful executives, being named Executive of the Decade at the 2019 Deloitte Top 200 Awards in Auckland tonight (5 December 2019).Mainfreight was also named Company of the Year, sponsored by Deloitte Digital and Marsh. 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. Will His AI Plans Be Any Different? Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9.3% of the pie. Under his guidance, the freight and logistics company has grown and expanded to now run operations in New Zealand, Australia, Asia and the United States. I learned that early in the piece and I think its stood me in good stead. 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. More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. 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. How do you measure this? Other Current Directorships: Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. Well in Europe they had these time clocks. Don: With this event in front of us right now, I think cash is king, and the collection of cash. 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. He is fiercely proud of the Mainfreight culture seeing this as a key reason customers choose Mainfreight over the competition. I dont see this as a job, so therefore the stress levels arent as strong. Regionally, the NZ business saw an increase of 11.5% in profit before tax to $97.8m, though supply chain capacity into and from NZ remains congested, and the company is frustrated with international shipping lines". 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. 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. "He never talks about himself and always talks about long-term goals," Hunt says. His leadership is underpinned by a strong belief in Mainfreights global competency and capabilities to provide high-quality supply chain solutions for our customers. Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. FINALIST After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. Some people dont want any more responsibility they find their own ceiling and thats fine. 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. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. Don joined in 1994 and hes been on the board since 2000 and the CEO for a heck of a long time. And thats why we travel a lot when you visit, you can smell the morale in an instant. Media enquiries Shareholders would be glad to know that the company has improved itself over the last few years. Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. d***@mainfreight.com. While there was someone in the drivers seat, the computer took over the vehicle. Concerned about the content? Contact. He points out that 172 million people live within a 350 km radius of Wim Bosman's headquarters in's-Heerenberg, on the Dutch-German border. In light of current trends, we will provide a nine-month trading update mid-February 2022. Although Plested remains the largest shareholder with a 16% stake worth $395m, Braids more modest 2.79% stake is still worth about $70m supplemented by annual remuneration of $2.2m in 2017. 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. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. That's ambitious, even . I might get a little bit wound up about stuff, a bit passionate about things, but I think you cant get so involved that you think about nothing else. This endeavor launched the first permanent investment into South America. Theres no bullshit in the numbers, they are what the business has earned. Mainfreight declares flat dividend, hands back $11m wage subsidy [7] This takeover was in response to the purchase of Tranz Rail by Australian transport firm Toll Holdings. We applaud that; weve always paid every supplier on the 20th of the month following and we ask the same of our customers. That means a lot of travel, but the reality is I thought my skills were best used in front of a customer so thats what I focused on. Out of that, I think weve got the culture really starting to develop. Deloitte Top 200 Award Winners Announced for 2019 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. 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. Mainfreight Half Year Financial Results 30 September 2021 - NZX Its an intimate touch with the P&L; the weeklies tell us lot. 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. 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. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. 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. As you get bigger, staff engagement and culture becomes more difficult. Investment has to come year on year it cant just come as a bribe at election time., Embracing the company motto that Good enough is never enough, Braid is focused on fulfilling a vision to make Mainfreight a 100-year company. See guidance for chairs and directors. But the excitement is justified. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. So we are developing our people to be the best they possibly can be. Chief executive, Kiwibank He attributed the. Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. Zac: Don, having a decentralized business, whats been your approach to leadership? Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. 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. 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. 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. Braid says the Mainfreight culture and passion took hold pretty quickly, and Plested recognised his leadership strengths by appointing him to the board six years later. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. Don Braid - Group Managing Director - Mainfreight NZ | ZoomInfo And he should know, having spent his entire working life in the freight industry. Group Managing Director, Mainfreight. How Does Don Braid's Compensation Compare With Similar Sized Companies? BRAID, Don - NBR | The Authority since 1970 Do also serves as a member of the Board of the Starship foundation. Don: Well, the numbers never lie, right? For further information, please contact Don Braid, Group Managing Director, telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com. "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.". Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. In 2008, the United States locations were re-branded as Mainfreight USA. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. At the end of the day, the decisions they made will be seen in the weekly results. Copyright 2023 Institute of Directors In 2003 Mainfreight bought Owens Group, one of New Zealand's largest trucking firms. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. Read More . 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. I really want to be in front of those customers! 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 The company is growing EPS and total shareholder returns have been pleasing. What else do we need to do to satisfy that bunch of customers? Zac: How do you prioritise where to spend your time in a normal week? 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. Don Braid, Mainfreight Ltd: Profile and Biography - Bloomberg Markets 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. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. This information will be used to measure the effectiveness of our advertising from various channels and to offer you personalised ads. Mainfreight shareholders would be similarly pleased. It is totally how I believe a company should be and I love how everyone starts at the bottom. Director Profiles | New Zealand - Mainfreight Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. The key for me is to be in the business as much as possible, to be visible. Mainfreight boss bypasses 'profiteering' global shipping lines - Newsroom 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. 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. Don from Mainfreight talks to Fisher Funds. 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. Q&A with Mainfreight's Don Braid - Business Changing 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. Your email address will not be published. Private parking spaces are also banned at Mainfreight - the group managing director has to find himself a spot in the carpark each morning after he drives through the front gate. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. 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. Mainfreight - Wikipedia 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. With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. By the way, its not just about us seeing those numbers. To trust your people too, to give them the responsibility. 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. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. Zac: What are your thoughts on driverless trucks and how they will affect Mainfreight? Required fields are marked *. How do I gain more customers? I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. 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: I think its quite a long way off. The firm has earned a reputation within the market for being slickly-run. 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. 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. Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. 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. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. What havent we got right? What we put in place here in New Zealand became the blueprint for the organization around the world. 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.". What are the things you do that maybe others dont do that actually make you lead this organization? And if you dont make a profit, theres no bonus that year. 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. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. Don Braid - newzealandinc.com He previously worked for the Otago Daily Times, after a return to business journalism in 2018. "We've been in China for 20 years. "You need some energy and you need to be on the front foot," he says. Were thinking about being around for a hundred years. Is Mainfreight Limited (NZSE:MFT) Overpaying Its CEO? - Yahoo! 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. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. 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. Richard Prebble is by profession a lawyer. Today he chairs a group of telecommunication companies. Email. His intellect and pragmatic approach is highly regarded at the Board table. Id also be really focused on being in touch with customers.
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