CEO compensation can have a massive impact on performance, but it's just one element. Its a huge level of success and theres satisfaction you get from that. Us taking away that clock was about responsibility and about taking away that control from head office. Mainfreight's $43.9m 'family' bonus | BusinessDesk In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. Zac: What are your thoughts on driverless trucks and how they will affect Mainfreight? 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. [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. 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. 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 shareholders would be similarly pleased. 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? On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. Nothing drives home the state of our roads like a trip on a bike. enter your email and well send you details. Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. 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. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. Any enquiries, or to book a table, please emailNatalie Spratt, Auckland Branch Coordinator. 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. [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 points out that 172 million people live within a 350 km radius of Wim Bosman's headquarters in's-Heerenberg, on the Dutch-German border. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. 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. Weve got examples of that in our business right now. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? See ourstandard terms and conditionsfor more information. What we put in place here in New Zealand became the blueprint for the organization around the world. In light of current trends, we will provide a nine-month trading update mid-February 2022. I suppose were grooming people all the time for those loaded leadership roles. Group Managing Director at Mainfreight NZ . Experts say community investment is the future. Not living as a question mark but instead getting on with it and making those decisions. Youve got to break it down. 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. 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. 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). So weve got eight and a half thousand people and 282 locations. And thats that. 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. The key for me is to be in the business as much as possible, to be visible. Wishing you the best in England and when you return to NZ. Don: I think empathy is really important. 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. For more information, please visit our cookie statement. 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. So what you produce in terms of profitability is real. Target has offices in 35 cities throughout the United States and an international network of agents in over 70 countries.[15]. Everyone stands on their own two feet. Click on [Agree] or [Disagree] to accept or refuse cookies. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. 'Ready, fire, aim' is Mainfreight man's mantra | Stuff.co.nz Mainfreight founder says bonuses help solve inequality and - Stuff "There's no bureaucracy or hierarchy or superiority in the business. Its an intimate touch with the P&L; the weeklies tell us lot. 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. "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. Look after our people, look after our customers, guard our cash, and embrace the opportunities that may arise.. Chosen from New Zealand's top companies, this year's Deloitte . Don Braid, Mainfreight Ltd: Profile and Biography - Bloomberg Markets It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. 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]. That was uppermost in our mind. BRAID, Don - NBR | The Authority since 1970 See guidance for chairs and directors. So youre not only giving them a responsibility for the P&L, but youre also giving them the responsibility of whos going to join our family. Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. Media enquiries 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). 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 having empathy and I think Im patient, determined, have belief and energy. Director Profiles - Mainfreight 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. 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. 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 NewZealand and internationally. 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. Spearheading the management team at New Zealands largest supply chain logistics and transport company has paid off handsomely for Mainfreight group managing director Don Braid. The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. So everything that we do is about being here for a long time. Your email address will not be published. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europes Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX. Get in touch with us directly. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. | Theres no cross subsidies. Mainfreight boss: China 'understands our value' - NZ Herald He is an outstandingly consistent and capable chief executive. [4] This operation was expanded with depots in Melbourne and Brisbane. 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 Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. Its revenue is up 5.9% over the last year. How Does Don Braid's Compensation Compare With Similar Sized Companies? Who wouldnt want exposure to the retirement sector? Thanks for your comments about Don Braid and Mainfreight. What havent we got right? As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. At the end of the day, the decisions they made will be seen in the weekly results. 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's net profit rose by $40.1m to $188.1m. "He's sporting and tough and makes decisions quite fast," Plested says. Mainfreight completes huge software roll-out, spanning A/NZ, US and Chief executive, Mainfreight Thats the key. "I probably wasn't qualified enough to go to university," Braid says. 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. What Can We Conclude About Mainfreight's (NZSE:MFT) CEO Pay? 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. Typically modest about his achievements, the 57-year-old is always quick to acknowledge the team effort behind Mainfreights success. 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. It only represents a small part of our revenue, but . With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. Zac: What is the Mainfreight way when it comes to culture? Learn more. Required fields are marked *. We aim to bring you long-term focused analysis driven by fundamental data. "He never moans about the currency and is always positive.". [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. Mainfreights two new build warehouses, a 50,000 square metre facility in Sydney and 30,000sqm build in Melbourne, are scheduled for completion by end next year. Don: Im not sure its stress. We offer lots of training as well, internally and externally. 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. New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. 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. 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. Zac: Don, having a decentralized business, whats been your approach to leadership? Musk Made a Mess at Twitter. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. 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. Don Braid. The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. 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. [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. Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. Contact. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? With Don Braid at the wheel, Mainfreight is in safe and skilful hands. Don: Um, I think its recognising good people. So long term, we have a really experienced leadership team. 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. Terms of use How do you maintain a positive culture and a time of crisis? By using this website you consent to the use of cookies in accordance with our privacy policy. Shareholders would be glad to know that the company has improved itself over the last few years. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . Agreement with print tech giant Canon saves college thousands. [3] [4] When the company was founded it entered a highly regulated transport market. The firm's shares have been one of the best performing stocks on the NZX, returning more than. 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. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. Don: Its been interesting! I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. 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. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". If were going to build facilities for our people, we build very good facilities to be around for a long time. If you trust your people, look after them and give them responsibility, theyll deliver. Is Mainfreight Limited (NZSE:MFT) Overpaying Its CEO? - Yahoo! 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. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. Component 2020 When it comes to capable, motivational and effective leadership Sam Knowles delivers with interest. And thats why we travel a lot when you visit, you can smell the morale in an instant. So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? Zac: Lets talk more about those weekly P&Ls. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. But the excitement is justified. Will be fundamentally different from the last one. 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. 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. Business Leader of the Year 2011 Winner: Don Braid - NZ Herald They love this as it makes them feel supported and that I understand their role.