Will be fundamentally different from the last one. The firm's shares have been one of the best performing stocks on the NZX, returning more than. 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. "You need some energy and you need to be on the front foot," he says. It is our strong belief that the momentum we have will continue, and will develop at a faster pace than we have experienced in the past, thanks to our people, our network and our culture. They know that now and can alter those decisions as they head into the week in front of them. 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. And if you dont make a profit, theres no bonus that year. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. Once it became a global pandemic we needed to react and adapt as quickly as we could. 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. Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. Mainfreight boss bypasses 'profiteering' global shipping lines - Newsroom Zac: Can you share more about your profit share? 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). Things are changing a little bit and everyones suggesting that its all going to go to eCommerce. [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. 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. Brent is a senior reporter based in Queenstown. [4] This operation was expanded with depots in Melbourne and Brisbane. Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. Mainfreight Half Year Financial Results 30 September 2021 - NZX 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. [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. What are their requirements? Insurers support an immediate managed retreat for recent flood victims. We dont call them staff for us, they are our people or our team. | 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. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. Cash flow is essential for any business survival. Photo / Supplied . Mainfreight completes huge software roll-out, spanning A/NZ, US and Thanks for your comments about Don Braid and Mainfreight. 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. By the way, its not just about us seeing those numbers. To trust your people too, to give them the responsibility. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. Don joined in 1994 and hes been on the board since 2000 and the CEO for a heck of a long time. 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. Check out our latest analysis for Mainfreight. Concerned about the content? 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. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. Don: I think empathy is really important. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. 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. Its an intimate touch with the P&L; the weeklies tell us lot. "We've been in China for 20 years. 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. Though his father was a truck driver, Timaru-born Braid cant recall being influenced by this. 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. 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. "There's no bureaucracy or hierarchy or superiority in the business. 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. So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? Don: With this decentralized approach, those P&Ls were talking about, theyre part of everyday life at Mainfreight those P&Ls go up on the cafeteria wall. I learned that early in the piece and I think its stood me in good stead. Weve made this article available for free. As an example, we know what money weve made or lost last week in every single one of those 282 branches as of about half an hour ago. FINALIST Once we convinced them that they didnt need a time clock, they took to them with a sledgehammer. So take a peek at this free list of interesting companies. See guidance for chairs and directors. You need to have been there 12 months to earn the full bonus that everybody else gets. Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. Where should we open next? How are we changing the business accordingly? Everyone stands on their own two feet. We will probably go back to normal but be ready to adapt, be flexible and look after your people theyll bring the answers to the table for you on what your business will look like in the future. 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. 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. Biography He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future. Previously, Don was a Political Columnist at Calgary Herald. 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. 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. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". +64 27 403 0148+64 9 905 [email protected], The Auckland Branch acknowledges the generous support of. 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 you trust your people, look after them and give them responsibility, theyll deliver. 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. 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. Mainfreight declares flat dividend, hands back $11m wage subsidy document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. 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. What else do we need to do to satisfy that bunch of customers? After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. Lessons from the Managing Director of one of NZ's most successful FINALIST 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. Other Current Directorships: Rapper, chef and author Action Bronson takes us on a journey from his early days at culinary school, to releasing critically acclaimed albums, to writing books, starring in TV shows and building an iconic brand around his favorite interests. You may withdraw your consent at any time. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. Don: The recruitment of our people sits with the branch managers. His intellect and pragmatic approach is highly regarded at the Board table. He brings strong financial skills and business acumen to the role. 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. [3] [4] When the company was founded it entered a highly regulated transport market. 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. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". We've identified 1 warning sign for Mainfreight that investors should be aware of in a dynamic business environment. Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. They have over 8500 staff in 280+ locations across 28 countries, so it was pretty cool (and humbling) for us to be able to chat to Don with some of our Business Changing clients recently. Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. 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. After the full acquisition that took place August 2007, Mainfreight Asia quickly gained momentum in the Air and Ocean sector, driving business in China and Southeast Asia. The Asian business saw profits more than double to US$7m, driven by increases in market share and rate increases from both air and see freight, the firm said. 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. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? 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. Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. If were going to build facilities for our people, we build very good facilities to be around for a long time. What have we got right? What do those customers look for from us? Top 200 : Deloitte/Management magazine Executive of the Year Don Braid And thats why we travel a lot when you visit, you can smell the morale in an instant. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. Were thinking about being around for a hundred years. COVID-19 has had a significant impact on freight and supply chains worldwide. But, he said, the groups response at the outset of the pandemic had been unequivocal. 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. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. And analysts have been warned that they "won't get a second interview" if they make that mistake of calling Mainfreight a "trucking company". Mainfreight boss: China 'understands our value' - NZ Herald We offer lots of training as well, internally and externally. 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. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. Your email address will not be published. Wishing you the best in England and when you return to NZ. This information will be used to measure the effectiveness of our advertising from various channels and to offer you personalised ads. PO Box 65092, Mairangi Bay, Auckland, New Zealand, Top 200 : Deloitte/Management magazine Executive of the Year Don Braid Clear Vision. Subscribe to protect quality NZ journalism. The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. 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. Its a huge level of success and theres satisfaction you get from that. Target has offices in 35 cities throughout the United States and an international network of agents in over 70 countries.[15]. I suppose were grooming people all the time for those loaded leadership roles. Will His AI Plans Be Any Different? His leadership is underpinned by a strong belief in Mainfreights global competency and capabilities to provide high-quality supply chain solutions for our customers. Read More . 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. 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. 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 believes in fostering an innovative culture in the organisation and encourages top performances from his teams. While there was someone in the drivers seat, the computer took over the vehicle. Mainfreight is publicly listed on the NZ Stock Exchange with a market capitalisation of $8+ billion. 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 New Zealand and internationally. Boards have a key role to play in the wake of any 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. Some of the leading players in the listed retirement sector have been raising capital. And he should know, having spent his entire working life in the freight industry. How do I gain more customers? "He implements things very well and you don't have to remind him about anything you're trying to achieve. "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. 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. I really want to be in front of those customers! Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. 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? Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. BRAID, Don - NBR | The Authority since 1970 Zac: Lets talk more about those weekly P&Ls. Don: It should be where your skills are. 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. The company is growing EPS and total shareholder returns have been pleasing. You cant see yourself as an employer of 8500 people. 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. As a young salesperson aged 19, I couldnt make a cold call. Zac: Don, what makes you good? Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. Mainfreight half year net profit lifts 79 per cent despite supply chain Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. 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. 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.