So what you produce in terms of profitability is real. The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. 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. Don Braid (Mainfreight) Credit: Mainfreight . 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. Like most Kiwi business leaders, Braid is self-effacing and doesn't fancy talking to journalists about his life outside the company. What do those customers look for from us? In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. Don: The culture is really important and our culture starts with those closest to the customer. I might get a little bit wound up about stuff, a bit passionate about things, but I think you cant get so involved that you think about nothing else. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. Richard Prebble is by profession a lawyer. Thanks for your comments about Don Braid and Mainfreight. 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. 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. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. Early on, New Zealand had great lessons to take to the rest of our network. [17], "Shareholding Information - Mainfreight Limited", "Mainfreight co-founder Neil Graham dies", "Road transport regulation a controversial measure to protect railways", "Mainfreight announces agreement to acquire Halford International", "Mainfreight breaks into Europe with $227m acquisition", "Mainfreight sues for $18m after shock client loss", "Mainfreight gets $14m payout - drops Euro claim", "The Wim Bosman Group becomes Mainfreight", "Mainfreight sells Pan Orient Project Logistics and its 75% shareholding in LEP (New Zealand and Australia) for over A$83 million", "Mainfreight Limited (Mainfreight) completes sale of Pan Orient Project Logistics", "Target Logistics, Inc. Agrees to be Acquired by Mainfreight Limited", https://en.wikipedia.org/w/index.php?title=Mainfreight&oldid=1136159997, Daily Freight (NZ), Carotrans (Worldwide), Owens (AU/NZ), ChemCouriers (AU/NZ) Mainfreight Europe (EU), This page was last edited on 29 January 2023, at 01:07. Im sure that everyone on this video call will be wanting to shake hands and sit across the table and deal face to face because of the body language thing and being able to ask more questions, whereas the video is quite limiting. 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. By using this website you consent to the use of cookies in accordance with our privacy policy. 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. The key for me is to be in the business as much as possible, to be visible. In this episode, Bronson explains how the lessons he learned in the kitchen translated to the booth, the reason money can never be the motivation for creating art, and why he believes that imperfections are the best part of any masterpiece. 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. As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. "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. Don: For us, its not about the short game, its about the long game. Component 2020 And then its about exploring the long game. "That gives us an enormous amount of opportunity.". Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. 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. 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. 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. "There's no bureaucracy or hierarchy or superiority in the business. 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. 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. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. 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. Well in Europe they had these time clocks. 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. Appointment to Board 2000 - With Mainfreight since 1994. COVID-19 has had a significant impact on freight and supply chains worldwide. Do also serves as a member of the Board of the Starship foundation. 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. So long term, we have a really experienced leadership team. Mainfreight is publicly listed on the NZ Stock Exchange with a market capitalisation of $8+ billion. [7] This takeover was in response to the purchase of Tranz Rail by Australian transport firm Toll Holdings. I really want to be in front of those customers! The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. 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. 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. Hes the right man for the job at just the right time. Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. Don: With this event in front of us right now, I think cash is king, and the collection of cash. 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. Email. Im not sure well see driverless trucks in NZ for some time to come. What we put in place here in New Zealand became the blueprint for the organization around the world. In 2008, the United States locations were re-branded as Mainfreight USA. FINALIST 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. Its great fun. "I probably wasn't qualified enough to go to university," Braid says. "Don gave this glowing account of [Daily Freightways] and I kept looking at him and thinking 'what a lot of bullshit'," Plested says. Mainfreight's straight-talking group managing director has an infectious zest for business. By the way, its not just about us seeing those numbers. What are their requirements? Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. "He implements things very well and you don't have to remind him about anything you're trying to achieve. Its revenue is up 5.9% over the last year. The company posted record earnings and revenue for its last full year and has continued to break records this financial 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, Plested was quoted as saying after Braid was selected as the 2011 Business Leader of the Year. Chief executive, Kiwibank Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. If were going to build facilities for our people, we build very good facilities to be around for a long time. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. 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. In 2006 the New Zealand Mainfreight International and Owens International businesses were also merged to make Mainfreight Owens International Ltd (now Mainfreight International). And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. How do you measure this? 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 It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. Don: I think its quite a long way off. I dont see this as a job, so therefore the stress levels arent as strong. JUDGES COMMENTS 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. Investors who take an interest in Mainfreight Limited ( NZSE:MFT) should definitely note that the Group MD & Director, Donald Braid, recently paid NZ$74.61 per share to buy NZ$500k worth of. 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. Hamish. [4] This operation was expanded with depots in Melbourne and Brisbane. Don: The recruitment of our people sits with the branch managers. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. [13] The transaction was completed on 6 June 2007. 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. [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. Chosen from New Zealand's top companies, this year's Deloitte . I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. Terms of use That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. Its a huge level of success and theres satisfaction you get from that. Zac: How do you prioritise where to spend your time in a normal week? For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. 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. Youve got to think about that as small groups of people looking after our customers and each group is important in their own right and theyll have their own little traits. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. 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.". don@mainfreight.com; Profile. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. They couldnt believe we trusted them to turn up when we needed them to turn up and leave when we needed them to leave. 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. Early in my career I understood that I enjoyed the interaction with customers and in fact I enjoy the challenge of helping win new customers. Previously, Don was a Political Columnist at Calgary Herald. What are the things you do that maybe others dont do that actually make you lead this organization? It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. But, he said, the groups response at the outset of the pandemic had been unequivocal. 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. See ourstandard terms and conditionsfor more information. 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. Required fields are marked *. Copyright 2023 Institute of Directors Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. Thats the key. [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. In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. Should it change? If you trust your people, look after them and give them responsibility, theyll deliver. Will be fundamentally different from the last one. Not living as a question mark but instead getting on with it and making those decisions. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. 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. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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