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. Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. 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. 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. What are the things you do that maybe others dont do that actually make you lead this organization? 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. 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. [3][4], When the company was founded it entered a highly regulated transport market. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. Not bad for a Kiwi trucking company! So a lot is about the long game. Learn more. The company is on track to go close to the $2 billion mark in its current financial year, Braid says, having already posted an almost $900 million revenue for the six months to September. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. Youve got to have good outlets. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. A table of ten booking is available for $1000.00, subject to availability at the time of booking. "I don't think any of those things are really of interest to this," he says. Don has over 40 years experience in the freight industry, including 26 with Mainfreight. But, he said the first seven weeks of trading in the current year has been at similar levels to the past six months. Theres no cross subsidies. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. 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. 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. 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. Its the individuals responsibility to arrive on time and stay until the jobs finished. Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. 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. 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. 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. Im always exploring those opportunities and may be experimenting in particular regions or with particular customers before implementing that across the rest of the business. The firm has earned a reputation within the market for being slickly-run. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. Do also serves as a member of the Board of the Starship foundation. "There's no bureaucracy or hierarchy or superiority in the business. Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. [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. FINALIST Don: I get out of the way. Some people dont want any more responsibility they find their own ceiling and thats fine. WINNER The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. 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. 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. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. So I think cashflow is king and Id be focused on that. 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. Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. By using this website you consent to the use of cookies in accordance with our privacy policy. | Brent is a senior reporter based in Queenstown. Wishing you the best in England and when you return to NZ. Copyright 2023 Institute of Directors Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. If you trust your people, look after them and give them responsibility, theyll deliver. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. See guidance for chairs and directors. Privacy policy 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. I feed off that and suppose the people in our business like seeing that and see it as an example and follow. 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. Out of that, I think weve got the culture really starting to develop. I'm pleased I didn't do anything else.". Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. 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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]. 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. 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. Don: It should be where your skills are. 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. And he should know, having spent his entire working life in the freight industry. 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. 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. 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. Don: The recruitment of our people sits with the branch managers. Not living as a question mark but instead getting on with it and making those decisions. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? Whilst describing the foundation of Mainfreight in 2000, Plested said to the New Zealand Herald, "We moved all our freight by sea between Auckland, and Christchurch and Dunedin, and we worked weekend shifts to make sure we loaded and unloaded the ship using the whole of the seven days - we found that was faster and more reliable than our big competitors."[4]. "He implements things very well and you don't have to remind him about anything you're trying to achieve. If you'd invested $20,000 in Mainfreight 20 years ago and reinvested your dividends, your investment would now be worth $1.3 million. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. You may withdraw your consent at any time. 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. 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 NBR Working Style Best Dressed Businessman Awards. 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. Appointment to Board 2000 - With Mainfreight since 1994. Shareholders would be glad to know that the company has improved itself over the last few years. Group Managing Director, Mainfreight. How do you measure this? I just have a belief and determination that weve got a pretty good business here. 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. Theres no bullshit in the numbers, they are what the business has earned. Chosen from New Zealand's top companies, this year's Deloitte . Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. "We've been in China for 20 years. His father was a truck driver, but he says that didn't influence his career decisions. 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. 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. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. Despite international growth and success, Braid is passionate about keeping the company proudly Kiwi-owned and has been an outspoken voice on local transport and infrastructure matters. 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. And then its about exploring the long game. We use functional and analytical cookies on our website to offer an optimal user experience. What else do we need to do to satisfy that bunch of customers? He brings strong financial skills and business acumen to the role. This endeavor launched the first permanent investment into South America. How Does Don Braid's Compensation Compare With Similar Sized Companies? 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. Once we convinced them that they didnt need a time clock, they took to them with a sledgehammer. 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! 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. 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. 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. 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. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. They love this as it makes them feel supported and that I understand their role. 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. Founded in 1969 as Dunedin Customs Brokers Ltd, DCB International provides international air and sea freight services from Dunedin. Im not sure well see driverless trucks in NZ for some time to come. That's just a smallish increase of 6.9% on last year. As a Government Minister, Richard was responsible for creating SOEs, deregulating telecommunications and broadcasting, reforming ports, airports, railways and aviation. Don: With this event in front of us right now, I think cash is king, and the collection of cash. I think the only measure of whether weve got the culture right will be seen in the numbers and in the customer service. 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. Don Braid of Mainfreight Limited presents key insights for directors about freight and supply chain patterns in the current climate. And analysts have been warned that they "won't get a second interview" if they make that mistake of calling Mainfreight a "trucking company". This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. 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. It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. Previously, Don was a Political Columnist at Calgary Herald. 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? Another attribute is straight talking. 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.". Zac: Can you share what some of the great ideas youve actually brought from overseas have been? The key for me is to be in the business as much as possible, to be visible. Look after your people and theyll look after the business. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. 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. Your email address will not be published. Engage via Email. By the way, its not just about us seeing those numbers. What do those customers look for from us? 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. 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. 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. How do you maintain a positive culture and a time of crisis? Don Braid is a Group Managing Director at Mainfreight NZ based in Mangere, . 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. 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?