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. 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. "You need some energy and you need to be on the front foot," he says. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. 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. So weve got eight and a half thousand people and 282 locations. 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. Both are real legends and seem to really walk the talk. We dont call them staff for us, they are our people or our team. "We've been in China for 20 years. Should it change? 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. 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. "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 November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. 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.". 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. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. Zac: Whats a bit of business advice you can share? Some people dont want any more responsibility they find their own ceiling and thats fine. In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. Zac: Can you share what some of the great ideas youve actually brought from overseas have been? By using this website you consent to the use of cookies in accordance with our privacy policy. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. 11/5/2022 3:33 PM. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. 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. Another attribute is straight talking. 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. It is totally how I believe a company should be and I love how everyone starts at the bottom. Wed rather own assets than lease them. "It's not about what I've done - it's about what we've done and what the business has done," he says. Though his father was a truck driver, Timaru-born Braid cant recall being influenced by this. 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. Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. Zac: How do you prioritise where to spend your time in a normal week? 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. "I don't think any of those things are really of interest to this," he says. So everything that we do is about being here for a long time. "If you allow the recession to roll over the top of you there's a great chance it will.". 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. Of course, you might find a fantastic investment by looking at a different set of stocks. To join your company account for BusinessDesk and enjoy full access, Mainfreight managing director Don Braid. 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. 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. [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. Zac: Don, having a decentralized business, whats been your approach to leadership? Don Braid (Mainfreight) Credit: Mainfreight . We've identified 1 warning sign for Mainfreight that investors should be aware of in a dynamic business environment. Bryan has a wealth of experience, both in executive and board roles. But well and behold, were in the perfect position not a lot of debt, trading really well, coming off a really good financial year the year before. 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. And sometimes, particularly so in New Zealand, they see the market ultimately being as quite small, when in fact their product or service is good enough to take to the world. Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. By the way, its not just about us seeing those numbers. Were thinking about being around for a hundred years. So it doesnt matter whether youre loading freight, taking customer service calls, out making sales calls, or an operations transport manager, you understand those disciplines early on in the piece. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . 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. What have we got right? Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. Richard Prebble is by profession a lawyer. Id also be really focused on being in touch with customers. So I think cashflow is king and Id be focused on that. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. Save my name, email, and website in this browser for the next time I comment. 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. Alternatively, email editorial-team@simplywallst.com. don@mainfreight.com; Profile. And he should know, having spent his entire working life in the freight industry. 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 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. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. The firm has earned a reputation within the market for being slickly-run. Don Braid. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. WINNER So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? 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. Zac: Can you share more about your profit share? COVID-19 has had a significant impact on freight and supply chains worldwide. What we put in place here in New Zealand became the blueprint for the organization around the world. Don: The culture is really important and our culture starts with those closest to the customer. Don: Well, the numbers never lie, right? By becoming a supporter, you'll be helping us expand our independent journalism for the business community. | 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. 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. Check out our latest analysis for Mainfreight. 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. Chosen from New Zealand's top companies, this year's Deloitte . 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. Cash flow is essential for any business survival. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. Since the acquisition of the Wim Bosman Group the eurozone has spiralled to the brink of economic disaster, but 52-year-old Braid says doing business on the debt-ravaged continent is nothing other than an "exciting" prospect. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. 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.
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