Where should we open next? So what you produce in terms of profitability is real. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. Don: Um, I think its recognising good people. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. Zac: What are your thoughts on driverless trucks and how they will affect Mainfreight? Another attribute is straight talking. "We've been in China for 20 years. 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. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? Chief executive, Mainfreight 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. 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. We offer lots of training as well, internally and externally. "I just think that's disgusting," he says. Watson said she did not believe bonuses were a way. Its a huge level of success and theres satisfaction you get from that. Zac: Don, having a decentralized business, whats been your approach to leadership? 'Ready, fire, aim' is Mainfreight man's mantra | Stuff.co.nz "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.". Q&A with Mainfreight's Don Braid - Business Changing Its the individuals responsibility to arrive on time and stay until the jobs finished. I suppose were grooming people all the time for those loaded leadership roles. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. We have been monitoring government updates regarding COVID-19 and are keeping up to date with Ministry of Health guidance with regard to events and public gatherings. Any enquiries, or to book a table, please emailNatalie Spratt, Auckland Branch Coordinator. Its having empathy and I think Im patient, determined, have belief and energy. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. So everything that we do is about being here for a long time. And thats that. You may withdraw your consent at any time. 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. 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. His company has been a shining example of success amid tough global economic conditions. 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. Mainfreight is a truly brilliant organization who sees all staff and their Franchises businesses as friends not employees. Don: With this event in front of us right now, I think cash is king, and the collection of cash. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. "He never moans about the currency and is always positive.". Mainfreight managing director Don Braid. He knows where the company is going and, more importantly, how it will get there. Your email address will not be published. So take a peek at this free list of interesting companies. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. Boards have a key role to play in the wake of any crisis. Chief executive, Kiwibank 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. 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. 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. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. COVID-19 has had a significant impact on freight and supply chains worldwide. In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. People thrive on being given responsibility. We would meet with them once a week and theyd share what theyd discovered and what they hadnt discovered and wed give them some guidance but then get out of their way and let them get on with the job. Don: The recruitment of our people sits with the branch managers. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. Mainfreight's straight-talking group managing director has an infectious zest for business. FINALIST How Does Don Braid's Compensation Compare With Similar Sized Companies? 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. Us taking away that clock was about responsibility and about taking away that control from head office. Its Mainfreights style to offer career progression, giving people here a long-term career in the business, allowing them to find that space to develop the leadership traits. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. Then we got some momentum and we saw some of the other regions doing better than what we thought so we felt better about it. Mainfreight completes huge software roll-out, spanning A/NZ, US and With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. I'm pleased I didn't do anything else.". Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. What have we got right? Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. Id also be really focused on being in touch with customers. Business Leader of the Year 2011 Winner: Don Braid - NZ Herald Bryan has a wealth of experience, both in executive and board roles. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. 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. How do you measure this? 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. Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. Get in touch with us directly. Out of that, I think weve got the culture really starting to develop. Will be fundamentally different from the last one. 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. 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. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. 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). 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. What havent we got right? And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. Even Europe's ongoing economic turmoil fails to dampen Braid's optimism, despite the Kiwi logistics operator having spent more than $200 million buying a Netherlands-based freight firm earlier this year, giving it a European footprint for the first time in its more than three-decade history. Insurers support an immediate managed retreat for recent flood victims. 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, 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. 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. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. | Copyright 2023 Institute of Directors His intellect and pragmatic approach is highly regarded at the Board table. And what do you believe leaders need to excel at? Chosen from New Zealand's top companies, this year's Deloitte . The government is pushing really hard for the major New Zealand companies to pay their suppliers on time, within 30 days. How we can fix New Zealand's ports - Don Braid | BusinessDesk How do I gain more customers? Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. 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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. Cash flow is essential for any business survival. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. 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. Check out our latest analysis for Mainfreight. 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. 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. 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. Other Current Directorships: He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. He is 100 percent dedicated to Mainfreight and its future and has led the company in consolidating its position as an international business, progress which will bring rewards not only for that company but for New Zealand as it continues to expand offshore. Hamish. WINNER In the decade Braid has spent at its helm, the company has become a global logistics player with operations on every populated continent apart from Africa. 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 whether the toilets clean, the cafeteria clean, have people got a smile on their face? 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. 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. For more information, please visit our cookie statement. FINALIST Previously, Don was a Political Columnist at Calgary Herald. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. 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. 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. 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. The long-term effects must be carefully studied. Look after our people, look after our customers, guard our cash, and embrace the opportunities that may arise.. How do you maintain a positive culture and a time of crisis? It only represents a small part of our revenue, but . Educated at Timaru Boys High School, Braid has been described as possibly the most self-effacing leader of major listed company in New Zealand and is widely regarded as straight-talking and strong leader. Shareholders would be glad to know that the company has improved itself over the last few years. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. 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. "I think I've always enjoyed business, from an early age, so to be involved like I am today has been great. 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. Sam Knowles DCB had a staff base of five employees on the date of acquisition, however, staff was expected to rise to seven employees. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. 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. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. [5] When deregulation of land transport occurred in October 1982, Mainfreight quickly took advantage of the opportunities presented and won a large share of the freight market. Read More . Not living as a question mark but instead getting on with it and making those decisions. 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. 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. Founded in 1969 as Dunedin Customs Brokers Ltd, DCB International provides international air and sea freight services from Dunedin. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as.
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