I think our owner drivers are a key component of the relationship with the customer. 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. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. We dont call them staff for us, they are our people or our team. The price of the rights fell as low as 7.5 cents on the last day of trading. Alternatively, email editorial-team@simplywallst.com. "I just think that's disgusting," he says. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. Appointment to Board 2000 - With Mainfreight since 1994. 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). He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . "I probably wasn't qualified enough to go to university," Braid says. 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. FINALIST Its a huge level of success and theres satisfaction you get from that. 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. 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. 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. Agreement with print tech giant Canon saves college thousands. Where should we open next? 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. "There's no bureaucracy or hierarchy or superiority in the business. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. Thats the key. In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. 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 were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. Its great fun. You cant see yourself as an employer of 8500 people. d***@mainfreight.com. [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. See guidance for chairs and directors. In 2008, the United States locations were re-branded as Mainfreight USA. 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. And what do you believe leaders need to excel at? "He never talks about himself and always talks about long-term goals," Hunt says. As Chairman and Founder, Bruce shares his vision for the Company with the Mainfreight team, bringing a particular focus to quality and our culture. Cash flow is essential for any business survival. His father was a truck driver, but he says that didn't influence his career decisions. 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 has over 40 years experience in the freight industry, including 26 with Mainfreight. In 2006 the New Zealand Mainfreight International and Owens International businesses were also merged to make Mainfreight Owens International Ltd (now Mainfreight International). Other Current Directorships: The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. Mainfreight people, he says, don't "live in question marks". It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. 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. How Does Don Braid's Compensation Compare With Similar Sized Companies? So long term, we have a really experienced leadership team. 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. National's three waters policy is only cosmetically distinct from Labour's. Contact. 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. Look after our people, look after our customers, guard our cash, and embrace the opportunities that may arise.. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europes Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX. 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. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. At the end of the day, the decisions they made will be seen in the weekly results. Don Braid of Mainfreight Limited presents key insights for directors about freight and supply chain patterns in the current climate. [7] This takeover was in response to the purchase of Tranz Rail by Australian transport firm Toll Holdings. Don Braid. 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. 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. [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. [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. When it comes to capable, motivational and effective leadership Sam Knowles delivers with interest. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. 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. Hes the right man for the job at just the right time. Don: With this event in front of us right now, I think cash is king, and the collection of cash. And if you dont make a profit, theres no bonus that year. Photo / Supplied . Zac: How do you prioritise where to spend your time in a normal week? Richard Prebble is by profession a lawyer. See the full transcript below. You know, people arrive when they arrive and they leave when they leave. 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 we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. Mainfreight shareholders would be similarly pleased. So I think cashflow is king and Id be focused on that. 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. 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]. His leadership is underpinned by a strong belief in Mainfreights global competency and capabilities to provide high-quality supply chain solutions for our customers. Don Braid 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. 11/5/2022 3:33 PM. Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. Don: For us, its not about the short game, its about the long game. Were thinking about being around for a hundred years. To trust your people too, to give them the responsibility. How do you maintain a positive culture and a time of crisis? Weve made this article available for free. The company also noted Brexit issues between the UK and Europe remained a cause of frustration, particularly since January, resulting in considerable delays to freight on the back of more complicated customs formalities. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. Don: I get out of the way. "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.". Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. Simply Wall St has no position in any stocks mentioned.Have feedback on this article? What we put in place here in New Zealand became the blueprint for the organization around the world. Chief executive, Mainfreight In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. Mainfreight Limited is a New Zealand logistics and transport company headquartered in Auckland. I'm pleased I didn't do anything else.". In light of current trends, we will provide a nine-month trading update mid-February 2022. So what you produce in terms of profitability is real. And he should know, having spent his entire working life in the freight industry. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. 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. 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. 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. 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 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. 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. Another attribute is straight talking. Your email address will not be published. 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. Will His AI Plans Be Any Different? 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. 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. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. 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. 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. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. 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. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. Investors who take an interest in Mainfreight Limited ( NZSE:MFT) should definitely note that the Group MD & Director, Donald Braid, recently paid NZ$74.61 per share to buy NZ$500k worth of. Should it change? So the weekly P&L puts them on the spot. Things are changing a little bit and everyones suggesting that its all going to go to eCommerce. It doesnt matter what the worlds thrown at them, theyve shown they are capable of dealing with it. In 2003 Mainfreight bought Owens Group, one of New Zealand's largest trucking firms. The long-term effects must be carefully studied. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. 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. | "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". By the way, its not just about us seeing those numbers. Look after your people and theyll look after the business. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. "We've been in China for 20 years. 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. BusinessDesk has a paywall for most of its content. "We need to try and paint the picture around Mainfreight here and what Mainfreight is, that to me is of more interest than whether I like rugby or cricket. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. Not bad for a Kiwi trucking company! In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. His intellect and pragmatic approach is highly regarded at the Board table. People thrive on being given responsibility. Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. 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. 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. 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. How do I gain more customers? Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. Mainfreight is publicly listed on the NZ Stock Exchange with a market capitalisation of $8+ billion. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. Biography Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. I really want to be in front of those customers! So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? [8], Headquartered in 's-Heerenberg, The Netherlands, Wim Bosman is privately held and operates more than 1,000 transport units, manage more than 275,000m2 of cross-docking facilities and warehouse area, and employ roughly 1,414 staff within 14 branches located in The Netherlands, Belgium, France, Romania, Poland, and Russia. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. Get in touch with us directly. Bryan has a wealth of experience, both in executive and board roles. The key for me is to be in the business as much as possible, to be visible. A table of ten booking is available for $1000.00, subject to availability at the time of booking. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. I suppose were grooming people all the time for those loaded leadership roles. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. 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. 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. 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. The firm has earned a reputation within the market for being slickly-run. Mainfreight is the fourth largest company in NZ, doing over $3 billion in sales and over $300 million in EBITDA, with physical assets of $1.5 billion and debt of less than $200 million. Its 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. Theres a video of it happening and what was really exciting was once the clock came off the wall, you could hear the laughter and the clapping and the voices of approval from those who were watching. Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. 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. We aim to bring you long-term focused analysis driven by fundamental data. Early in the piece at Mainfreight, leaders are given responsibility, so the ability to take responsibility and to make decisions is pretty important. The branch managers are the kings and queens, by the way, because thats where the moneys made the national team is just there to support the branch managers. Chosen from New Zealand's top companies, this year's Deloitte . Despite international growth and success, Braid is passionate about keeping the company proudly Kiwi-owned and has been an outspoken voice on local transport and infrastructure matters. I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. How do you measure this? Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. 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. [3] [4] When the company was founded it entered a highly regulated transport market. 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. Group managing director Don Braid said it was a significant result for the Mainfreight family, achieved during a tumultuous time in the worlds history and with success in every one of the five regions the company operated. "I think I've always enjoyed business, from an early age, so to be involved like I am today has been great. Well in Europe they had these time clocks. 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. 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. And thats why we travel a lot when you visit, you can smell the morale in an instant. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. 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. Copyright 2023 Institute of Directors Zac: Lets talk more about those weekly P&Ls. Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. Though his father was a truck driver, Timaru-born Braid cant recall being influenced by this. 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. Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. They love this as it makes them feel supported and that I understand their role. 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. What do those customers look for from us? Zac: Don, what makes you good? [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. Weekly operational reports are posted on the wall of the company cafeteria in Otahuhu, where all team members, including Braid, eat at a single, long table. New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. As a young salesperson aged 19, I couldnt make a cold call. "You need some energy and you need to be on the front foot," he says. Save my name, email, and website in this browser for the next time I comment. Zac: Whats a bit of business advice you can share? Don: I think empathy is really important. Don: It should be where your skills are. 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. Braid has earned a reputation within the market as a straight talker and one of the most effective NZX-50 bosses. Read More . So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? A licence from New Zealand Railways Corporation was needed to carry freight over 150km. 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. WINNER Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. He is unquestionably our Deloitte/Management magazine Top 200 Executive of the Year. And I think ultimately, yes, Im responsible for the business, but I enjoy what I do and having great people and a good lifestyle where I can stay fit and have some fun means the stress levels arent that high.
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