Previously, Don was a Political Columnist at Calgary Herald. CEO compensation can have a massive impact on performance, but it's just one element. Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. 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. And then its about exploring the long game. 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. Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. 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]. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. 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. Brent is a senior reporter based in Queenstown. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. Q&A with Mainfreight's Don Braid - Business Changing What Can We Conclude About Mainfreight's (NZSE:MFT) CEO Pay? - Yahoo! Out of that, I think weve got the culture really starting to develop. Don: Im not sure its stress. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. 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. 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. Zac: Don, having a decentralized business, whats been your approach to leadership? Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. "There's no bureaucracy or hierarchy or superiority in the business. 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. Click on [Agree] or [Disagree] to accept or refuse cookies. I think with a driverless truck, well lose that ability of interaction with the customer on pickup or on delivery. But, he said the first seven weeks of trading in the current year has been at similar levels to the past six months. Simply Wall St has no position in any stocks mentioned.Have feedback on this article? 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. Appointment to Board 2000 - With Mainfreight since 1994. So what you produce in terms of profitability is real. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. So I think cashflow is king and Id be focused on that. [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. What more could I be doing in the business to actually grow my revenues in these difficult times? 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. This article by Simply Wall St is general in nature. Engage via Email. [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. Hamish. Save my name, email, and website in this browser for the next time I comment. Then we just sat back and allowed the de-centralized process to take over and allowed people to take responsibility to get their businesses sorted and in line. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. enter your email and well send you details. 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. Photo / Supplied . The company now expects to spend an additional $338m for property over the next two years, with $156m of that during the current financial year. Thats the key. Nothing drives home the state of our roads like a trip on a bike. COVID-19 has had a significant impact on freight and supply chains worldwide. Don Braid is Managing Director/CEO at Mainfreight Ltd. See Don Braid's compensation, career history, education, & memberships. Filed Under: Blog, Business coaching, Motivation coming at ya, What a great interview and there are many excellent points which the Mainfreight CEO covered like Empathy which is essential when supporting all those involved in Mainfreights success and another dealt with the importance of making sure all invoices are paid on time. But, he said, the groups response at the outset of the pandemic had been unequivocal. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. His father was a truck driver, but he says that didn't influence his career decisions. 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. See ourstandard terms and conditionsfor more information. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. [4] This operation was expanded with depots in Melbourne and Brisbane. 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. Zac: How do you prioritise where to spend your time in a normal week? They couldnt believe we trusted them to turn up when we needed them to turn up and leave when we needed them to leave. Don: With this event in front of us right now, I think cash is king, and the collection of cash. Between 1994 and 1997 Mainfreight started acquiring former competitors, such as, Daily Freightways and Chem Couriers in 1994, a 75% shareholding in Lep New Zealand in 1996, and Combined Haulage and Senco Haulage in 1997. In light of current trends, we will provide a nine-month trading update mid-February 2022. His intellect and pragmatic approach is highly regarded at the Board table. Whats changed? 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. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. Of course, you might find a fantastic investment by looking at a different set of stocks. Early on, New Zealand had great lessons to take to the rest of our network. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. Musk Made a Mess at Twitter. Some of the leading players in the listed retirement sector have been raising capital. We were lucky enough to have a really incredible chat with Mainfreight CEO Don Braid about what he has learnt as the CEO of Mainfreight. Braid has earned a reputation within the market as a straight talker and one of the most effective NZX-50 bosses. "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.". Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. Breakfast with Don Braid, Mainfreight Ltd | IoD NZ To join your company account for BusinessDesk and enjoy full access, This information will be used to measure the effectiveness of our advertising from various channels and to offer you personalised ads. Chief executive, Mainfreight As a young salesperson aged 19, I couldnt make a cold call. 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. 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. "I think I've always enjoyed business, from an early age, so to be involved like I am today has been great. JUDGES COMMENTS As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. Mainfreight people, he says, don't "live in question marks". Terms of use Id also be really focused on being in touch with customers. 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. He is unquestionably our Deloitte/Management magazine Top 200 Executive of the Year. Braid consistently delivers for shareholders and stakeholders alike. 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. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. We applaud that; weve always paid every supplier on the 20th of the month following and we ask the same of our customers. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. It now has 22 company depots in Australia and relies on agents and third parties in the Northern Territory, Tasmania and some of regional Australia. Mainfreight declares flat dividend, hands back $11m wage subsidy Bryan has a wealth of experience, both in executive and board roles. Mainfreight Limited is a New Zealand logistics and transport company headquartered in Auckland. So a lot is about the long game. Look after your people and theyll look after the business. 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. 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. You may withdraw your consent at any time. Privacy policy FINALIST Zac: Whats a bit of business advice you can share? So the idea was to make sure that our people were right, that our systems were ok, what customers could trade, and how we could help those customers as an essential service. Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. I think the only measure of whether weve got the culture right will be seen in the numbers and in the customer service. 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: The culture is really important and our culture starts with those closest to the customer. But the excitement is justified. Don Braid Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. In 2006 the New Zealand Mainfreight International and Owens International businesses were also merged to make Mainfreight Owens International Ltd (now Mainfreight International). It is totally how I believe a company should be and I love how everyone starts at the bottom. Insurers support an immediate managed retreat for recent flood victims. [13] The transaction was completed on 6 June 2007. Get in touch with us directly. Will His AI Plans Be Any Different? 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. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. The Biosecurity Business Pledge group has launched two new biosecurity guides. 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. Not bad for a Kiwi trucking company! 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. So weve got eight and a half thousand people and 282 locations. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. So we are developing our people to be the best they possibly can be. Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. 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. How we can fix New Zealand's ports - Don Braid | BusinessDesk Don Braid - Group Managing Director - Mainfreight NZ | ZoomInfo Biography 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. 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. 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
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