Subscribe to protect quality NZ journalism. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? Is our service or a product still current? Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? Mainfreight people, he says, don't "live in question marks". 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. Biography And thats that. That was uppermost in our mind. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. "You need some energy and you need to be on the front foot," he says. Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. Not bad for a Kiwi trucking company! So a lot is about the long game. 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. So everything that we do is about being here for a long time. As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. Media enquiries | "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. In addition, we use tracking cookies, which can collect information about you and follow your internet activity within our website, and possibly outside our website as well. Zac: How do you prioritise where to spend your time in a normal week? So the weekly P&L puts them on the spot. Early in the piece at Mainfreight, leaders are given responsibility, so the ability to take responsibility and to make decisions is pretty important. This endeavor launched the first permanent investment into South America. We ask our people to recruit very good people with passion and energy; people good enough to become branch managers. We applaud that; weve always paid every supplier on the 20th of the month following and we ask the same of our customers. 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. 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. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. Cash flow is essential for any business survival. I really want to be in front of those customers! By using this website you consent to the use of cookies in accordance with our privacy policy. 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. See ourstandard terms and conditionsfor more information. As a Government Minister, Richard was responsible for creating SOEs, deregulating telecommunications and broadcasting, reforming ports, airports, railways and aviation. [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. 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. But, he said, the groups response at the outset of the pandemic had been unequivocal. So we are developing our people to be the best they possibly can be. Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. So you need to make sure youve got succession planning to be able to work on the dream that youre creating. BusinessDesk has a paywall for most of its content. 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. Don joined in 1994 and hes been on the board since 2000 and the CEO for a heck of a long time. 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. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. 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. How do you measure this? A licence from New Zealand Railways Corporation was needed to carry freight over 150km. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. What are the things you do that maybe others dont do that actually make you lead this organization? Us taking away that clock was about responsibility and about taking away that control from head office. 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. And then its about exploring the long game. For me its being in the business, with people and in particular with customers. Youve got to break it down. 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. What more could I be doing in the business to actually grow my revenues in these difficult times? Save my name, email, and website in this browser for the next time I comment. Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. Don: With this event in front of us right now, I think cash is king, and the collection of cash. Privacy policy 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. More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. I suppose were grooming people all the time for those loaded leadership roles. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. Some of the leading players in the listed retirement sector have been raising capital. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. Zac: Don, if you owned your own SME business at the moment, what would you be focusing on going forward to be as successful as you could be under this environment? Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. "That gives us an enormous amount of opportunity.". 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. 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. Simply Wall St has no position in any stocks mentioned.Have feedback on this article? Zac: Whats a bit of business advice you can share? See guidance for chairs and directors. PO Box 65092, Mairangi Bay, Auckland, New Zealand, Top 200 : Deloitte/Management magazine Executive of the Year Don Braid Clear Vision. Whats changed? Chief executive, Air New Zealand 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. By becoming a supporter, you'll be helping us expand our independent journalism for the business community. But the excitement is justified. 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. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. 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). You may withdraw your consent at any time. 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. 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. Hes the right man for the job at just the right time. "Don gave this glowing account of [Daily Freightways] and I kept looking at him and thinking 'what a lot of bullshit'," Plested says. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. [13] The transaction was completed on 6 June 2007. Id also be really focused on being in touch with 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. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . 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. In light of current trends, we will provide a nine-month trading update mid-February 2022. Her knowledge of high-tech companies is a welcome addition to the Boards capabilities, as is her familiarity with the complexities of acquisitions, and steering companies through growth and change. 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. Rob Fyfe The Biosecurity Business Pledge group has launched two new biosecurity guides. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. I will definitely be following the Mainfreight progress closely for when I return to NZ. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". 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. "He's sporting and tough and makes decisions quite fast," Plested says. 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. [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. 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. Other Current Directorships: Mainfreight managing director Don Braid. The firm has earned a reputation within the market for being slickly-run. 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. "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. And if you dont make a profit, theres no bonus that year. Mainfreight's straight-talking group managing director has an infectious zest for business. don@mainfreight.com; Profile. Its revenue is up 5.9% over the last year. How does that actually work, practically? So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. So long term, we have a really experienced leadership team. 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. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. Rapper, chef and author Action Bronson takes us on a journey from his early days at culinary school, to releasing critically acclaimed albums, to writing books, starring in TV shows and building an iconic brand around his favorite interests. As a young salesperson aged 19, I couldnt make a cold call. Like most Kiwi business leaders, Braid is self-effacing and doesn't fancy talking to journalists about his life outside the company. Its an intimate touch with the P&L; the weeklies tell us lot. Don Braid is Managing Director/CEO at Mainfreight Ltd. See Don Braid's compensation, career history, education, & memberships. For further information, please contact Don Braid, Group Managing Director, telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com. 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. Group Managing Director at Mainfreight NZ . Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you trust your people, look after them and give them responsibility, theyll deliver. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. | Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. 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. 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. I dont see this as a job, so therefore the stress levels arent as strong. [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. His father was a truck driver, but he says that didn't influence his career decisions. You can be profitable and not collect the cash and go broke. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. 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. 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. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. Don: For us, its not about the short game, its about the long game. What are their requirements? I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. 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. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. JUDGES COMMENTS Nothing drives home the state of our roads like a trip on a bike. But, he said the first seven weeks of trading in the current year has been at similar levels to the past six months. 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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. Founded in 1969 as Dunedin Customs Brokers Ltd, DCB International provides international air and sea freight services from Dunedin. 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. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. 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. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. Don: It should be where your skills are. So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? Will His AI Plans Be Any Different? 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. To trust your people too, to give them the responsibility. Alternatively, email editorial-team@simplywallst.com. Don Braid's Phone Number and Email Last Update. Thanks for your comments about Don Braid and Mainfreight. 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. Wed rather own assets than lease them. 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 has over 40 years' experience in the freight industry, including 26 with Mainfreight. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. 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's net profit rose by $40.1m to $188.1m. What havent we got right? It only represents a small part of our revenue, but . Don: Its been interesting! This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. Previously, Don was a Political Columnist at Calgary Herald. 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. Look after your people and theyll look after the business. I learned that early in the piece and I think its stood me in good stead. It has been listed on the New Zealand Exchange since 1996. 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. 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. Once it became a global pandemic we needed to react and adapt as quickly as we could. New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. 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. Its great fun. 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. On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . 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. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. We're trying to break all that down.". 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. I just have a belief and determination that weve got a pretty good business here. Don: Well, the numbers never lie, right? The key for me is to be in the business as much as possible, to be visible. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. Your email address will not be published. For more information, please visit our cookie statement. Bryan has a wealth of experience, both in executive and board roles. So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? They know that now and can alter those decisions as they head into the week in front of them. "If you allow the recession to roll over the top of you there's a great chance it will.". 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. Group Managing Director, Mainfreight. Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. "I don't think any of those things are really of interest to this," he says. 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. What have we got right? 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. Though his father was a truck driver, Timaru-born Braid cant recall being influenced by this. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. 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. Thanks Mr Braid for sharing your knowledge and insight. | Engage via Email. 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. Don Braid (Mainfreight) Credit: Mainfreight . 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. 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. 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. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. 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. Wishing you the best in England and when you return to NZ. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. 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.