So take a peek at this free list of interesting companies. 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. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. Don: I get out of the way. Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. Your email address will not be published. Terms of use 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: Lets talk more about those weekly P&Ls. What are the things you do that maybe others dont do that actually make you lead this organization? We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. The company is growing EPS and total shareholder returns have been pleasing. 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]. Will be fundamentally different from the last one. 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. 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. Any enquiries, or to book a table, please emailNatalie Spratt, Auckland Branch Coordinator. So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? They couldnt believe we trusted them to turn up when we needed them to turn up and leave when we needed them to leave. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. Don: Im not sure its stress. WINNER With the takeover of the Owens Group in 2003 they purchased Owens International Australia. Should it change? [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. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. 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. [4] This operation was expanded with depots in Melbourne and Brisbane. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? Don: Um, I think its recognising good people. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. When other international airlines are finding their wings clipped, this straight talking, and well regarded leader, has proved his point. | 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. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. Founded in 1969 as Dunedin Customs Brokers Ltd, DCB International provides international air and sea freight services from Dunedin. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Other Current Significant Directorships and Trusteeships: BUPA ANZ Pty Limited (Chairman), Adherium Limited, Clearspan Limited, Thinxtra Australia, Starship Foundation, Massey University Foundation. 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. 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. 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.". This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. [13] The transaction was completed on 6 June 2007. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. 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. Where should we open next? "We've been in China for 20 years. 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. Its having empathy and I think Im patient, determined, have belief and energy. Appointment to Board 2000 - With Mainfreight since 1994. Its great fun. 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. So the weekly P&L puts them on the spot. Don Braid. 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. [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. The Australian business reported a 46.6% jump in profit before tax to A$71.5m for the year, on the back of regional expansion of the groups transport business. CEO compensation can have a massive impact on performance, but it's just one element. They know that now and can alter those decisions as they head into the week in front of them. DCB had a staff base of five employees on the date of acquisition, however, staff was expected to rise to seven employees. Look after your people and theyll look after the business. It only represents a small part of our revenue, but . If you'd invested $20,000 in Mainfreight 20 years ago and reinvested your dividends, your investment would now be worth $1.3 million. Yes, wed committed an enormous amount of capital expenditure coming into this new financial year, but we were in good shape in that the balance sheet looks pretty good. Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. What havent we got right? 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). 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. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. Thats the key. 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. "If you allow the recession to roll over the top of you there's a great chance it will.". 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. He attributed the. So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. Is our service or a product still current? Don from Mainfreight talks to Fisher Funds. So what you produce in terms of profitability is real. 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. Hes the right man for the job at just the right time. "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. Some people dont want any more responsibility they find their own ceiling and thats fine. 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. Weve got examples of that in our business right now. 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. That was uppermost in our mind. Today he chairs a group of telecommunication companies. 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. 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. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". 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. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. [3] [4] When the company was founded it entered a highly regulated transport market. Component 2020 Revenues were up $448.4m to $3.5 billion, a 14.5% increase on the prior year, with 76% of that now generated outside New Zealand. 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. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. | 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). Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. This endeavor launched the first permanent investment into South America. Regrettably, registration fees cannot be refunded when cancellations are received within two working days prior to any branch event. Concerned about the content? Weekly operational reports are posted on the wall of the company cafeteria in Otahuhu, where all team members, including Braid, eat at a single, long table. A table of ten booking is available for $1000.00, subject to availability at the time of booking. Not living as a question mark but instead getting on with it and making those decisions. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? By becoming a supporter, you'll be helping us expand our independent journalism for the business community. 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. 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. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. 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. 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. | Offices are outlawed, even for Braid, whose desk is situated in the corner of a large, open-plan room occupied by the company's national team. The key for me is to be in the business as much as possible, to be visible. JUDGES COMMENTS And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. Zac: Whats a bit of business advice you can share? Typically modest about his achievements, the 57-year-old is always quick to acknowledge the team effort behind Mainfreights success. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. You cant see yourself as an employer of 8500 people. 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. They love this as it makes them feel supported and that I understand their role. Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. 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 aim to bring you long-term focused analysis driven by fundamental data. 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! We ask our people to recruit very good people with passion and energy; people good enough to become branch managers. Wishing you the best in England and when you return to NZ. Don: Theres been lots of things actually, like electric forklifts, the use of solar power Heres a good example: in New Zealand weve never had time clocks. 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. Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. He has an enviable track record of integrity and professionalism and wide ranging business experience. 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. 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. Prior to joining Air New Zealand, he held range of senior management positions both within New Zealand and overseas, including roles with the National Australia Bank, Bank of New Zealand, Telecom NZ and ITV Group in the UK. 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. Zac: What are your thoughts on driverless trucks and how they will affect Mainfreight? 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. 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. Copyright 2023 Institute of Directors In 2008, the United States locations were re-branded as Mainfreight USA. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. "He's sporting and tough and makes decisions quite fast," Plested says. "I don't think any of those things are really of interest to this," he says. It has been listed on the New Zealand Exchange since 1996. Engage via Email. As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. And if you dont make a profit, theres no bonus that year. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. The firm's shares have been one of the best performing stocks on the NZX, returning more than. Both are real legends and seem to really walk the talk. enter your email and well send you details. Zac: What is the Mainfreight way when it comes to culture? What are their requirements? Plested says that within a few months of the firm's acquisition of Daily Freightways, which became Daily Freight under Mainfreight ownership, he came to recognise Braid's strengths. And he should know, having spent his entire working life in the freight industry. The firm has earned a reputation within the market for being slickly-run. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. Thanks Mr Braid for sharing your knowledge and insight. In the decade Braid has spent at its helm, the company has become a global logistics player with operations on every populated continent apart from Africa. Do also serves as a member of the Board of the Starship foundation. 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 natural protection for earnings. Bruce would be the first person to say he needed to have great leadership following him if he wanted to bring his hundred year vision to life. Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. What more could I be doing in the business to actually grow my revenues in these difficult times? So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. 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. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. Everyone stands on their own two feet. For more information, please visit our cookie statement. 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. Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. And I suppose the key thing that we had in our mind was how are we going to run this business to survive and not make anybody redundant. His company has been a shining example of success amid tough global economic conditions. Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. 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. 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. We applaud that; weve always paid every supplier on the 20th of the month following and we ask the same of our customers. We tackle critical leadership, management and economic issues as well as profiling successful local and global leaders. Richard Prebble is by profession a lawyer. I learned that early in the piece and I think its stood me in good stead. What do those customers look for from us? 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.
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