Im not sure well see driverless trucks in NZ for some time to come. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . And thats that. 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. Don: For us, its not about the short game, its about the long game. Theres no bullshit in the numbers, they are what the business has earned. 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. 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. They couldnt believe we trusted them to turn up when we needed them to turn up and leave when we needed them to leave. Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. I dont believe that. While the group had deferred capital expenditure during early 2020, it had recommenced land and building projects during the year, with net capex totalling $118.6m, of which land and buildings accounted for $58.9m, plant and equipment $26m, fit out costs of $15.6m and information technology another $18m. That's just a smallish increase of 6.9% on last year. What have we got right? 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. His father was a truck driver, but he says that didn't influence his career decisions. So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. Weve got examples of that in our business right now. Formerly Halford Young, Halford is a private logistics company and freight forwarder with operations and networks in Australia and New Zealand, Japan, Germany, throughout Asia and the United States.[6]. Copyright 2023 Institute of Directors 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. 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 brings strong financial skills and business acumen to the role. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? Wishing you the best in England and when you return to NZ. 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. Don: Its been interesting! 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. To join your company account for BusinessDesk and enjoy full access, The firms European business where it has a footprint of more than 330,000 sqm of warehousing saw a 23.4% improvement in profit before tax to 22.35m, despite extensive lockdowns across the continent, many of which were ongoing. 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. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Its an intimate touch with the P&L; the weeklies tell us lot. Don: Im not sure its stress. 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. CEO compensation can have a massive impact on performance, but it's just one element. Where should we open next? He has issued a New research confirms the importance that NZ business leaders place on reputation, but reveals that many companies need to increase their investment in building and protecting it. For me its being in the business, with people and in particular with customers. 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. Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. Don: The culture is really important and our culture starts with those closest to the customer. If you trust your people, look after them and give them responsibility, theyll deliver. Zac: Don, your 100-year vision how does that work? 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. 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. 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. 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. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. National's three waters policy is only cosmetically distinct from Labour's. Your email address will not be published. Were not thinking about selling our shares, were not thinking of getting out when the goings good were here for the good and the bad so were preparing the business for that next 100 years. 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. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. 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. Once we convinced them that they didnt need a time clock, they took to them with a sledgehammer. 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. And what do you believe leaders need to excel at? 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. What we put in place here in New Zealand became the blueprint for the organization around the world. So take a peek at this free list of interesting companies. 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. Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. We offer lots of training as well, internally and externally. The government is pushing really hard for the major New Zealand companies to pay their suppliers on time, within 30 days. 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. On the Money: Tim Boyd he's back; James Lee he's leaving, and more New drugs could end the worlds obesity epidemic, Big plus for NZ schools and govt agencies, Growing wealth through our cities growth, Insurers call on government to seize the day, Smoke, mirrors and delay Nationals three waters policy, Former CentrePort CEO Liz Ward joins KiwiRail board. Brent is a senior reporter based in Queenstown. [11], Since 2011, Mainfreight, under the Wim Bosman name, have opened new branches in Bergen op Zoom in The Netherlands, Cluj-Napoca in Romania, Frankfurt and Gelsenkirchen in Germany, London in United Kingdom, and Pozna/Lubo in Poland. 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.". Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. 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. I think the only measure of whether weve got the culture right will be seen in the numbers and in the customer service. Hi Tanya. Component 2020 The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. 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. Its having empathy and I think Im patient, determined, have belief and energy. I will definitely be following the Mainfreight progress closely for when I return to NZ. +64 27 403 0148+64 9 905 [email protected], The Auckland Branch acknowledges the generous support of. [5] When deregulation of land transport occurred in October 1982, Mainfreight quickly took advantage of the opportunities presented and won a large share of the freight market. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. 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. And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. 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? As a young salesperson aged 19, I couldnt make a cold call. As Chairman and Founder, Bruce shares his vision for the Company with the Mainfreight team, bringing a particular focus to quality and our culture. 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. Privacy policy [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. 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. So weve got eight and a half thousand people and 282 locations. How Does Don Braid's Compensation Compare With Similar Sized Companies? Zac: Lets talk more about those weekly P&Ls. 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. Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9.3% of the pie. In light of current trends, we will provide a nine-month trading update mid-February 2022. Chief executive, Mainfreight Don joined in 1994 and hes been on the board since 2000 and the CEO for a heck of a long time. "He implements things very well and you don't have to remind him about anything you're trying to achieve. | More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. The company is growing EPS and total shareholder returns have been pleasing. You can be profitable and not collect the cash and go broke. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. This article by Simply Wall St is general in nature. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. What are their requirements? If you'd invested $20,000 in Mainfreight 20 years ago and reinvested your dividends, your investment would now be worth $1.3 million. If were going to build facilities for our people, we build very good facilities to be around for a long time. 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. When it comes to capable, motivational and effective leadership Sam Knowles delivers with interest. 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. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. Typically modest about his achievements, the 57-year-old is always quick to acknowledge the team effort behind Mainfreights success. That's ambitious, even . [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. 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. 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. 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. I guess whats annoying is that we have got to wait for an election year to get this kind of stuff. Its revenue is up 5.9% over the last year. Simon has a long association with Mainfreight having served as the Companys main adviser for acquisitions, debt structure and other matters since 2003 (through Grant Samuel & Associates), prior to joining the Mainfreight Board. 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. 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. It only represents a small part of our revenue, but . Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. Not living as a question mark but instead getting on with it and making those decisions. Previously, Don was a Political Columnist at Calgary Herald. 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. I think our owner drivers are a key component of the relationship with the customer. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. 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. The price of the rights fell as low as 7.5 cents on the last day of trading. And if you dont make a profit, theres no bonus that year. Even Europe's ongoing economic turmoil fails to dampen Braid's optimism, despite the Kiwi logistics operator having spent more than $200 million buying a Netherlands-based freight firm earlier this year, giving it a European footprint for the first time in its more than three-decade history. Will His AI Plans Be Any Different? Its Mainfreights style to offer career progression, giving people here a long-term career in the business, allowing them to find that space to develop the leadership traits. So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? [4] This operation was expanded with depots in Melbourne and Brisbane. We aim to bring you long-term focused analysis driven by fundamental data. 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. 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, with businesses operating in over 214 branches throughout New Zealand, Australia, Europe, Asia and the United States. 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. [3] [4] When the company was founded it entered a highly regulated transport market. [3][4], When the company was founded it entered a highly regulated transport market. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. He believes in fostering an innovative culture in the organisation and encourages top performances from his teams. The long-term effects must be carefully studied. See guidance for chairs and directors. [13] The transaction was completed on 6 June 2007. "If you allow the recession to roll over the top of you there's a great chance it will.". Both are real legends and seem to really walk the talk. 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Forsyth Barr analyst Rob Mercer said the market had confidence in Mainfreight after it managed to grow revenue and market share and outperform its peers during the global financial crisis. Zac: Whats a bit of business advice you can share? 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. Hes the right man for the job at just the right time. We're trying to break all that down.". "He never talks about himself and always talks about long-term goals," Hunt says.
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