"I don't think any of those things are really of interest to this," he says. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. Subscribe to protect quality NZ journalism. So everything that we do is about being here for a long time. People thrive on being given responsibility. A table of ten booking is available for $1000.00, subject to availability at the time of booking. And he should know, having spent his entire working life in the freight industry. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. He brings strong financial skills and business acumen to the role. If you trust your people, look after them and give them responsibility, theyll deliver. 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. 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. Mainfreight Limited is a New Zealand logistics and transport company headquartered in Auckland. Email. 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. Regionally, the NZ business saw an increase of 11.5% in profit before tax to $97.8m, though supply chain capacity into and from NZ remains congested, and the company is frustrated with international shipping lines". It has been listed on the New Zealand Exchange since 1996. 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. 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. As a Government Minister, Richard was responsible for creating SOEs, deregulating telecommunications and broadcasting, reforming ports, airports, railways and aviation. Once it became a global pandemic we needed to react and adapt as quickly as we could. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. "There's no bureaucracy or hierarchy or superiority in the business. As you get bigger, staff engagement and culture becomes more difficult. | So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. Will His AI Plans Be Any Different? Don Braid. 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. Everyone stands on their own two feet. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. How do you maintain a positive culture and a time of crisis? If you'd invested $20,000 in Mainfreight 20 years ago and reinvested your dividends, your investment would now be worth $1.3 million. "You need some energy and you need to be on the front foot," he says. What havent we got right? And analysts have been warned that they "won't get a second interview" if they make that mistake of calling Mainfreight a "trucking company". He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. Were thinking about being around for a hundred years. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. 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. 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. 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]. See guidance for chairs and directors. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. "If you allow the recession to roll over the top of you there's a great chance it will.". Brent is a senior reporter based in Queenstown. Chief executive, Kiwibank Mainfreight's net profit rose by $40.1m to $188.1m. And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. 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? [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. Insurers support an immediate managed retreat for recent flood victims. But they had different regulations for different countries: it was a metre between the two trucks, it was a metre and half in Belgium, and it was two meters in France. The Biosecurity Business Pledge group has launched two new biosecurity guides. Agreement with print tech giant Canon saves college thousands. Don: Im not sure its stress. 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. 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. How Does Don Braid's Compensation Compare With Similar Sized Companies? The company is growing EPS and total shareholder returns have been pleasing. The government is pushing really hard for the major New Zealand companies to pay their suppliers on time, within 30 days. 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. 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. 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. Regrettably, registration fees cannot be refunded when cancellations are received within two working days prior to any branch event. We aim to bring you long-term focused analysis driven by fundamental data. Don Braid's Phone Number and Email Last Update. 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. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. FINALIST What else do we need to do to satisfy that bunch of customers? If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. How do you measure this? 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. "We've been in China for 20 years. Should it change? Don has led the Mainfreight team through a significant period of change and expansion to become the successful global supply chain logistics provider it is today, operating in 26 countries around the world, with $3+ billion in sales revenue, and he leads a team of 9,240 passionate Mainfreight people all around the world. "He's sporting and tough and makes decisions quite fast," Plested says. Zac: What is the Mainfreight way when it comes to culture? What more could I be doing in the business to actually grow my revenues in these difficult times? 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. Chief executive, Mainfreight 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 Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. It only represents a small part of our revenue, but . Zac: Don, having a decentralized business, whats been your approach to leadership? That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. BusinessDesk has a paywall for most of its content. 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. Terms of use 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. So what you produce in terms of profitability is real. 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. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. 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. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. Some of the leading players in the listed retirement sector have been raising capital. Contact. So I think cashflow is king and Id be focused on that. Experts say community investment is the future. 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. In his results commentary, Braid said the results were pleasing in light of initial supply chain disruptions during the early part of the year, on the back of lockdowns in response to the global pandemic. 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. In April 2007, Mainfreight announced its intentions to sell its Pan Orient Project Logistics business and its 75% interest in Lep Australia and New Zealand to global logistics company Agility Group for A$83 million. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. Cash flow is essential for any business survival. 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. Don has over 40 years experience in the freight industry, including 26 with Mainfreight. Do also serves as a member of the Board of the Starship foundation. Involved in the founding of Kiwibank before taking the top job, Knowles embraces challenge and thrives on delivering top results. 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. Weve needed to adjust, particularly in the international sector, air freight charters rather than just normal air freight our people had never had any experience in chartering a full plane. 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. 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? Look after our people, look after our customers, guard our cash, and embrace the opportunities that may arise.. How does that actually work, practically? We tackle critical leadership, management and economic issues as well as profiling successful local and global leaders. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. Chosen from New Zealand's top companies, this year's Deloitte . He is fiercely proud of the Mainfreight culture seeing this as a key reason customers choose Mainfreight over the competition. New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. Don: I think its quite a long way off. 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. 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. Other Current Significant Directorships and Trusteeships: BUPA ANZ Pty Limited (Chairman), Adherium Limited, Clearspan Limited, Thinxtra Australia, Starship Foundation, Massey University Foundation. I think the only measure of whether weve got the culture right will be seen in the numbers and in the customer service. Mainfreight shareholders would be similarly pleased. With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. He is unquestionably our Deloitte/Management magazine Top 200 Executive of the Year. Who wouldnt want exposure to the retirement sector? 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. 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. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. So long term, we have a really experienced leadership team. You cant see yourself as an employer of 8500 people. Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. Thats the best way of being able to manage an event like were in right now, but Id say its the best way to run a business at all times.We have some really good systems. Copyright 2023 Institute of Directors Photo / Supplied . 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). That's ambitious, even . When other international airlines are finding their wings clipped, this straight talking, and well regarded leader, has proved his point. 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. To trust your people too, to give them the responsibility. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. [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. 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! He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. Your email address will not be published. And what do you believe leaders need to excel at? His first job after leaving school was as a clerk with the Shipping Corporation before he moved on to Sea Freightways and then Daily Freightways, which was sold to Mainfreight in 1994. Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. Theres no bullshit in the numbers, they are what the business has earned. The relationships we develop, both with suppliers and with customers, are there for the long term. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. He owns a 3 per cent stake in the firm, worth about $29 million. Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. I believe that I shouldnt ask my colleagues/work mates/ team to do any task I would not do myself or know how to do. In 2008, the United States locations were re-branded as Mainfreight USA. 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 Richard Prebble is by profession a lawyer. 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. 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. So a lot is about the long game. You know, people arrive when they arrive and they leave when they leave. Don: Um, I think its recognising good people. 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.". Early in the piece at Mainfreight, leaders are given responsibility, so the ability to take responsibility and to make decisions is pretty important. Where do we need to be? At Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. The firm's shares have been one of the best performing stocks on the NZX, returning more than. Chief executive, Air New Zealand In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. And thats that. 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. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. Watson said she did not believe bonuses were a way. This information will be used to measure the effectiveness of our advertising from various channels and to offer you personalised ads. Braid consistently delivers for shareholders and stakeholders alike. 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. Not bad for a Kiwi trucking company! Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. We applaud that; weve always paid every supplier on the 20th of the month following and we ask the same of our customers. Hes the right man for the job at just the right time. Its having empathy and I think Im patient, determined, have belief and energy. Getting decisions made as close to the customer as possible is probably our secret and giving that responsibility to those in the branches. Its the individuals responsibility to arrive on time and stay until the jobs finished. Out of that, I think weve got the culture really starting to develop. "We need to try and paint the picture around Mainfreight here and what Mainfreight is, that to me is of more interest than whether I like rugby or cricket. To join your company account for BusinessDesk and enjoy full access,