[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. 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. Required fields are marked *. Initially wed take 10% of that profit and share it equally with everybody in the branch but as weve developed and gotten a little more sophisticated, weve applied quality stats to the numbers. Don from Mainfreight talks to Fisher Funds. I could not get out of the car and go and meet a stranger to ask for the business and now I actually prefer to do that! Indonesia ups trade potential with focus on corporate governance, NZ business needs to invest more in reputation, NZ corporates taking a lead in health & safety. So a lot is about the long game. 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. The firm has earned a reputation within the market for being slickly-run. 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. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? "That gives us an enormous amount of opportunity.". Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Rob Fyfe But the excitement is justified. New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. Read More . 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. That's just a smallish increase of 6.9% on last year. Don Braid. At the end of the day, the decisions they made will be seen in the weekly results. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. 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. Learn more. 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@mainfreight.com; Profile. 11/5/2022 3:33 PM. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. [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. The Mainfreight board is intent on doubling revenue to $2 billion by 2015, mostly from international earnings, and Mr Braid envisages at least 500 branches before too long. On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. What have we got right? Don: With this event in front of us right now, I think cash is king, and the collection of cash. Theres no cross subsidies. [11], Since 2011, Mainfreight, under the Wim Bosman name, have opened new branches in Bergen op Zoom in The Netherlands, Cluj-Napoca in Romania, Frankfurt and Gelsenkirchen in Germany, London in United Kingdom, and Pozna/Lubo in Poland. Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. The relationships we develop, both with suppliers and with customers, are there for the long term. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. How are we changing the business accordingly? The CEO of Mainfreight Limited (NZSE:MFT) is Don Braid, and this article examines the executive's compensation against the backdrop of overall company performance. This article by Simply Wall St is general in nature. Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. That's ambitious, even . What are the things you do that maybe others dont do that actually make you lead this organization? The trick is to decentralize it and to give them control of the profit and loss, allow them to have sufficient KPIs, and measurement systems to monitor those as quickly as possible so that nothing gets out of control. You need to have been there 12 months to earn the full bonus that everybody else gets. Don: For us, its not about the short game, its about the long game. Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. Cash flow is essential for any business survival. I really want to be in front of those customers! With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? Click on [Agree] or [Disagree] to accept or refuse cookies. 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. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". "He never talks about himself and always talks about long-term goals," Hunt says. 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. 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. For me its being in the business, with people and in particular with customers. Don: Its been interesting! Sam Knowles By the way, its not just about us seeing those numbers. Business in the Americas also saw an improved performance, with a 29.7% increase in profit to US$25.93m, with Mainfreight's air and ocean division benefiting from resurgent demand from customers and market share gains in the US. CEO compensation can have a massive impact on performance, but it's just one element. 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 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). Early on, New Zealand had great lessons to take to the rest of our network. "Don gave this glowing account of [Daily Freightways] and I kept looking at him and thinking 'what a lot of bullshit'," Plested says. "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. Wed rather own assets than lease them. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. So you need to be committed for the long term.The clich about the beach, the BMW and the boat it looks pretty attractive after 10 years of hard work but what could you have created after a hundred years and have you got something thats a bit special?I think you need passion, energy, belief and the ability to develop people to run the business for the future. 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. "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.". Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. Media enquiries 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 a huge level of success and theres satisfaction you get from that. Don: I think empathy is really important. That was uppermost in our mind. 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. Zac: Don, your 100-year vision how does that work? Some people dont want any more responsibility they find their own ceiling and thats fine. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. 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. As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. Well in Europe they had these time clocks. [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. They couldnt believe we trusted them to turn up when we needed them to turn up and leave when we needed them to leave. 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. 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. Zac: Whats a bit of business advice you can share? To join your company account for BusinessDesk and enjoy full access, Mainfreight managing director Don Braid. Not bad for a Kiwi trucking company! Its having empathy and I think Im patient, determined, have belief and energy. [3][4], When the company was founded it entered a highly regulated transport market. 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. Kiwis know the firm largely through its blue trucks that ply our highways, but the company also utilises sea, train and air freight to transport goods around the world. "We've been in China for 20 years. 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. 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. 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. Mainfreight Limited is a New Zealand logistics and transport company headquartered in Auckland. Appointment to Board 2000 - With Mainfreight since 1994. Don: The recruitment of our people sits with the branch managers. 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. 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 thats that. He has issued a New research confirms the importance that NZ business leaders place on reputation, but reveals that many companies need to increase their investment in building and protecting it. 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.". Once we convinced them that they didnt need a time clock, they took to them with a sledgehammer. Don: Im not sure its stress. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. You cant see yourself as an employer of 8500 people. Our subscriptions start at $24 / month for individuals. 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. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. 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. Zac: How do you prioritise where to spend your time in a normal week? Will be fundamentally different from the last one. Privacy policy 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. 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. It is totally how I believe a company should be and I love how everyone starts at the bottom. 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. [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 joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Another attribute is straight talking. See ourstandard terms and conditionsfor more information. Will His AI Plans Be Any Different? FINALIST So you need to make sure youve got succession planning to be able to work on the dream that youre creating. 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. 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. The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. 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. 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. Concerned about the content? 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. Part of our recruitment process is to get them to go through the system and learn the business from the floor up: you start by pushing a broom or running documents to Customs. So take a peek at this free list of interesting companies. Its great fun. 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). Don Braid (Mainfreight) Credit: Mainfreight . At Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. "If you allow the recession to roll over the top of you there's a great chance it will.". Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. So it doesnt matter whether youre loading freight, taking customer service calls, out making sales calls, or an operations transport manager, you understand those disciplines early on in the piece. 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. 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. While many companies have been battening down the hatches this year, Mainfreight has been on the acquisition trail - purchasing a Netherlands-based freight business which operates in Belgium, France, Romania and Poland and Russia. | The Biosecurity Business Pledge group has launched two new biosecurity guides. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. Component 2020 It has been listed on the New Zealand Exchange since 1996. By becoming a supporter, you'll be helping us expand our independent journalism for the business community. 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. Involved in the founding of Kiwibank before taking the top job, Knowles embraces challenge and thrives on delivering top results. Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. Zac: What is the Mainfreight way when it comes to culture? 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. I'm pleased I didn't do anything else.". 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. Youve got to break it down. 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 owns a 3 per cent stake in the firm, worth about $29 million. 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. 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. Chosen from New Zealand's top companies, this year's Deloitte . document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. 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. Chief executive, Kiwibank So what you produce in terms of profitability is real. 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. Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments.
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