Don Braid (Mainfreight) Credit: Mainfreight . Its revenue is up 5.9% over the last year. Don Braid - newzealandinc.com Mainfreight chief executive Don Braid says New Zealand needs to slash the number of its container ports to a 'maximum' of three to avoid being side-lined by major shippers.The 18-year veteran CEO of the NZX-listed multinational logistics company told a supply chain forum in Auckland on Wednesday that container cranes sitting at most of the The opportunities offshore and the populations that exist in some of those other countries are large; you only have to get something half right in some of those countries and youre growing a big business compared to what you have here in New Zealand. "That gives us an enormous amount of opportunity.". I dont see this as a job, so therefore the stress levels arent as strong. Theyre all networked, but theyre all distanced so we knew we needed to communicate really well with them and have a blueprint that we know would work. "There's no bureaucracy or hierarchy or superiority in the business. So weve got eight and a half thousand people and 282 locations. Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. How Does Don Braid's Compensation Compare With Similar Sized Companies? Founded in 1969 as Dunedin Customs Brokers Ltd, DCB International provides international air and sea freight services from Dunedin. So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? So each person can earn some more money by not just making profit, but keeping customers happy, keeping claims to a lower amount, making sure were collecting cash, making sure that were delivering freight in full and on time but the base bonus, everybody gets the same amount no matter whether youve been there for one year or for 40 years and no matter what your position is. 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. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. At Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. It doesnt matter what the worlds thrown at them, theyve shown they are capable of dealing with it. We've identified 1 warning sign for Mainfreight that investors should be aware of in a dynamic business environment. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. "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.". This endeavor launched the first permanent investment into South America. But, he said the first seven weeks of trading in the current year has been at similar levels to the past six months. 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. 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. Simply Wall St has no position in any stocks mentioned.Have feedback on this article? WINNER We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. He is an outstandingly consistent and capable chief executive. Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys' High School and has over 43 years' experience in freight forwarding and logistics both New Zealand and internationally. And analysts have been warned that they "won't get a second interview" if they make that mistake of calling Mainfreight a "trucking company". Net capex totaled $155m for the period, of which land and buildings accounted for $111.7m, plant and equipment $26.6m and IT at $16.7m. Wed rather own assets than lease them. Zac: Lets talk more about those weekly P&Ls. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? 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. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. 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. 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. He's got plenty of charm if he wants to have it and his leadership skills just stand out people want to stand next to him, Plested was quoted as saying after Braid was selected as the 2011 Business Leader of the Year. Its great fun. 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. [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. He owns a 3 per cent stake in the firm, worth about $29 million. Don: It should be where your skills are. You may withdraw your consent at any time. Mainfreight half year net profit lifts 79 per cent despite supply chain Im sure that everyone on this video call will be wanting to shake hands and sit across the table and deal face to face because of the body language thing and being able to ask more questions, whereas the video is quite limiting. COVID-19 has had a significant impact on freight and supply chains worldwide. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . 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. [7] This takeover was in response to the purchase of Tranz Rail by Australian transport firm Toll Holdings. 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. FINALIST Chief executive, Mainfreight 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. What Can We Conclude About Mainfreight's (NZSE:MFT) CEO Pay? Privacy policy 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). Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. Weve got examples of that in our business right now. Watson said she did not believe bonuses were a way. As you get bigger, staff engagement and culture becomes more difficult. Zac: Don, what makes you good? Thats the key. Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. 2023: A year of trepidation unless you take control, Talking to 2022 Westpac Supreme Business Winner, Juliette Hogan, How Fix & Fogg are winning the hearts of Americans. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. How does that actually work, practically? Bryan has a wealth of experience, both in executive and board roles. 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. Private parking spaces are also banned at Mainfreight - the group managing director has to find himself a spot in the carpark each morning after he drives through the front gate. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". 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. I really want to be in front of those customers! In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. [3] [4] When the company was founded it entered a highly regulated transport market. 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. Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. [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. Youve got to break it down. See the full transcript below. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. While many of its NZX-50 peers have entered a period of stagnation, Mainfreight - it seems - thrives on hard times. And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. They know that now and can alter those decisions as they head into the week in front of them. 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. 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. Previously, Don was a Political Columnist at Calgary Herald. Copyright 2023 Institute of Directors Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. Where should we open next? Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. 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. 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. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. Don Braid, Mainfreight Ltd: Profile and Biography - Bloomberg Markets Cash flow is essential for any business survival. Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. Don: Well, the numbers never lie, right? 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 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 Braid of Mainfreight Limited presents key insights for directors about freight and supply chain patterns in the current climate. Insurers support an immediate managed retreat for recent flood victims. To join your company account for BusinessDesk and enjoy full access, The company is growing EPS and total shareholder returns have been pleasing. What do those customers look for from us? I learned that early in the piece and I think its stood me in good stead. | Zac: Whats a bit of business advice you can share? We aim to bring you long-term focused analysis driven by fundamental data. He is unquestionably our Deloitte/Management magazine Top 200 Executive of the Year. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. 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. Mainfreight's straight-talking group managing director has an infectious zest for business. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. Mainfreight shareholders would be similarly pleased. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. [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. Save my name, email, and website in this browser for the next time I comment. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. I think our owner drivers are a key component of the relationship with the customer. Terms of use 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. Subscribe to protect quality NZ journalism. Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. Aside from travel (usually), customers, and communicating with those in other countries I spend my time in front of our people and our leadership team, no matter where they are located.