Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. Braid consistently delivers for shareholders and stakeholders alike. 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. Id also be really focused on being in touch with customers. The long-term effects must be carefully studied. In 2003 Mainfreight bought Owens Group, one of New Zealand's largest trucking firms. 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. 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. Business Leader of the Year 2011 Winner: Don Braid - NZ Herald [3][4], When the company was founded it entered a highly regulated transport market. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. Don: I think empathy is really important. By using this website you consent to the use of cookies in accordance with our privacy policy. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. Agreement with print tech giant Canon saves college thousands. National's three waters policy is only cosmetically distinct from Labour's. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. So long term, we have a really experienced leadership team. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. The NZ team, who had really done a great job through the Kaikoura and Christchurch earthquakes, quickly put together a plan on how to react. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. Braid, who joined Mainfreight through its purchase of Daily Freightways, says the company hasn't let the last few years of economic upheaval dull its ambitions. Another attribute is straight talking. 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. 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. "Don gave this glowing account of [Daily Freightways] and I kept looking at him and thinking 'what a lot of bullshit'," Plested says. When other international airlines are finding their wings clipped, this straight talking, and well regarded leader, has proved his point. So the weekly P&L puts them on the spot. Chief executive, Kiwibank By the way, its not just about us seeing those numbers. In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. How do you maintain a positive culture and a time of crisis? Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. You may withdraw your consent at any time. 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. I think our owner drivers are a key component of the relationship with the customer. 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 people, he says, don't "live in question marks". 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. Other Current Significant Directorships and Trusteeships: BUPA ANZ Pty Limited (Chairman), Adherium Limited, Clearspan Limited, Thinxtra Australia, Starship Foundation, Massey University Foundation. Previously, Don was a Political Columnist at Calgary Herald. Don: For us, its not about the short game, its about the long game. Photo / Supplied . "I think I've always enjoyed business, from an early age, so to be involved like I am today has been great. 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 has over 40 years' experience in the freight industry, including 26 with Mainfreight. Weve sort of tucked on the back of some trials in Europe and in the States where they were running in threes and fours behind each other, all connected by a computer. See ourstandard terms and conditionsfor more information. You can be profitable and not collect the cash and go broke. Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys High School and has over 30 years experience in freight forwarding and logistics both New Zealand and internationally. Whats changed? In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. Q&A with Mainfreight's Don Braid - Business Changing They established agencies in the early days with Australian, Pacific Island and United States freight forwarders and the established agents in most major trading partner countries of New Zealand. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. Bryan has a wealth of experience, both in executive and board roles. Once we convinced them that they didnt need a time clock, they took to them with a sledgehammer. On the Money: Tim Boyd he's back; James Lee he's leaving, and more New drugs could end the worlds obesity epidemic, Big plus for NZ schools and govt agencies, Growing wealth through our cities growth, Insurers call on government to seize the day, Smoke, mirrors and delay Nationals three waters policy, Former CentrePort CEO Liz Ward joins KiwiRail board. What else do we need to do to satisfy that bunch of customers? What more could I be doing in the business to actually grow my revenues in these difficult times? The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. I will definitely be following the Mainfreight progress closely for when I return to NZ. See the full transcript below. Mainfreight managing director Don Braid. Email. Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. By becoming a supporter, you'll be helping us expand our independent journalism for the business community. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. If you trust your people, look after them and give them responsibility, theyll deliver. Is Mainfreight Limited (NZSE:MFT) Overpaying Its CEO? - Yahoo! We applaud that; weve always paid every supplier on the 20th of the month following and we ask the same of our customers. 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. 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? What do those customers look for from us? Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. Hamish. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. 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. Brent is a senior reporter based in Queenstown. That's ambitious, even . Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. The relationships we develop, both with suppliers and with customers, are there for the long term. Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. And I suppose the key thing that we had in our mind was how are we going to run this business to survive and not make anybody redundant. Mainfreights newest regions, Asia, Europe and The Americas (spanning from Canada to South America), are expected to grow exponentially as the world trade shifts towards other developing countries. What are their requirements? Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. For me its being in the business, with people and in particular with customers. "I probably wasn't qualified enough to go to university," Braid says. Our data indicates that Mainfreight Limited has a market capitalization of NZ$6.0b, and total annual CEO compensation was reported as NZ$3.0m for the year to March 2020. Biography Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys' High School and has over 30 years' experience in freight forwarding and logistics both New Zealand and internationally.. He previously worked for the Otago Daily Times, after a return to business journalism in 2018. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. Zac: Can you share what some of the great ideas youve actually brought from overseas have been? Not living as a question mark but instead getting on with it and making those decisions. 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. Zac: Can you share more about your profit share? It now has 22 company depots in Australia and relies on agents and third parties in the Northern Territory, Tasmania and some of regional Australia. George Adams, the departing MD, of Coca-Cola Amatil, won the Leader of the Year award at this weeks NZ Workplace Health & Safety Awards 2013. 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. Thats the best way of being able to manage an event like were in right now, but Id say its the best way to run a business at all times.We have some really good systems. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. While many of its NZX-50 peers have entered a period of stagnation, Mainfreight - it seems - thrives on hard times. Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. Privacy policy It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Click on [Agree] or [Disagree] to accept or refuse cookies. Other Current Directorships: 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. Don: Well, the numbers never lie, right? 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. 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. Hes the right man for the job at just the right time. 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 Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for our customers. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Fyfe joined Air New Zealand at the start of 2003 as chief information officer, before becoming group general manager airlines from October 2003 until his appointment as CEO in October 2005. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. He has led the company in strengthening its global logistics business and ensuring an increased diversification of revenue streams across many countries, trade lanes and activities provides [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. Richard Prebble is by profession a lawyer. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. Zac: What are your thoughts on driverless trucks and how they will affect Mainfreight? 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. Read More . FINALIST Top 200 : Deloitte/Management magazine Executive of the Year Don Braid His intellect and pragmatic approach is highly regarded at the Board table. Don: Theres been lots of things actually, like electric forklifts, the use of solar power Heres a good example: in New Zealand weve never had time clocks. Wed rather own assets than lease them. 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. Wishing you the best in England and when you return to NZ. Some of the leading players in the listed retirement sector have been raising capital. When it comes to capable, motivational and effective leadership Sam Knowles delivers with interest. 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. 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). Subscribe to protect quality NZ journalism. In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. As a young salesperson aged 19, I couldnt make a cold call. Mainfreight is publicly listed on the NZ Stock Exchange with a market capitalisation of $8+ billion. 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. Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. 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. JUDGES COMMENTS The Biosecurity Business Pledge group has launched two new biosecurity guides. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. Out of that, I think weve got the culture really starting to develop. Don: The culture is really important and our culture starts with those closest to the customer. While there was someone in the drivers seat, the computer took over the vehicle. So what you produce in terms of profitability is real. How Does Don Braid's Compensation Compare With Similar Sized Companies? BusinessDesk has a paywall for most of its content. Thanks Mr Braid for sharing your knowledge and insight. 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]. Deloitte Top 200 Award Winners Announced for 2019 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. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. What are the things you do that maybe others dont do that actually make you lead this organization? [4] This operation was expanded with depots in Melbourne and Brisbane. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. Everyone stands on their own two feet. You need to have been there 12 months to earn the full bonus that everybody else gets. So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? He owns a 3 per cent stake in the firm, worth about $29 million. On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. Don has over 40 years experience in the freight industry, including 26 with Mainfreight. Mainfreight's net profit rose by $40.1m to $188.1m. d***@mainfreight.com. Regrettably, registration fees cannot be refunded when cancellations are received within two working days prior to any branch event. We use functional and analytical cookies on our website to offer an optimal user experience. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . Things are changing a little bit and everyones suggesting that its all going to go to eCommerce. Some people dont want any more responsibility they find their own ceiling and thats fine. Mainfreight founder says bonuses help solve inequality and - Stuff 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. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. "It's not about what I've done - it's about what we've done and what the business has done," he says. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". Mainfreight boss bypasses 'profiteering' global shipping lines - Newsroom Our subscriptions start at $24 / month for individuals. "He's sporting and tough and makes decisions quite fast," Plested says. Who wouldnt want exposure to the retirement sector? And thats that. Engage via Email. We're trying to break all that down.". He is an outstandingly consistent and capable chief executive. 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. Check out our latest analysis for Mainfreight. Don from Mainfreight talks to Fisher Funds. 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. Will be fundamentally different from the last one. 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. In this episode, Bronson explains how the lessons he learned in the kitchen translated to the booth, the reason money can never be the motivation for creating art, and why he believes that imperfections are the best part of any masterpiece. We tackle critical leadership, management and economic issues as well as profiling successful local and global leaders. How do I gain more customers? Don: Um, I think its recognising good people. 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. 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. So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. Zac: Don, what makes you good? I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. And thats why we travel a lot when you visit, you can smell the morale in an instant. 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. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. | Were thinking about being around for a hundred years. 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. The company is growing EPS and total shareholder returns have been pleasing. Lessons from the Managing Director of one of NZ's most successful Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. He has led the company in strengthening its global logistics business and ensuring an increased diversification of revenue streams across many countries, trade lanes and activities provides natural protection for earnings. Don Braid - Group Managing Director - Mainfreight NZ | ZoomInfo Getting decisions made as close to the customer as possible is probably our secret and giving that responsibility to those in the branches. 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. Weve got examples of that in our business right now. Copyright 2023 Institute of Directors We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. Mainfreight is a truly brilliant organization who sees all staff and their Franchises businesses as friends not employees. His father was a truck driver, but he says that didn't influence his career decisions. 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. His company has been a shining example of success amid tough global economic conditions. 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. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. Don Braid is a Group Managing Director at Mainfreight NZ based in Mangere, . As a Government Minister, Richard was responsible for creating SOEs, deregulating telecommunications and broadcasting, reforming ports, airports, railways and aviation. 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. 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.
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