The role of the IR professional has never been more important. The globalization of financial markets and the ever-changing complexity of the legal and regulatory environment have placed great emphasis on staying up to date on developments – IR certification can play a major role in this regard.
As Andrew Mills, partner at London- based consultancy Hydra Strategy and former chairman of the UK’s IR Society, explains: ‘As investor relations has continued to grow in importance as a strategic function central to building corporate reputation, so has the need for IR professionals to be fully on top of their game.
‘When just one mistake can have significant consequences, it is critical that the individuals entrusted with representing a company and dealing with key stakeholder audiences have the necessary skills, experience and regulatory awareness.’
So if this is the challenging playing field, what are the respective global associations doing to ensure the players – IR professionals – are addressing the IR certification challenge? A great deal, in fact.
NIRI: Setting the standard
NIRI, the oldest and largest of the professional IR associations, is often looked to as the ‘standard setter’, according to Gary LaBranche, its president and chief executive. And there’s a reason for this: NIRI launched the first US-based benchmark for the IR profession, the Investor Relations Charter (IRC), to fulfill an expressed need of the IR community.
‘Earning a professional designation is very important these days,’ observes LaBranche. ‘More than 1 mn certifications are awarded each year in the US, according to a study conducted by the Georgetown University Center on Education and the Workforce.’
The potential benefits of the IRC qualification include the validation of specialized knowledge, enhancement of professional credibility, demonstration of professional commitment, attainment of a practice standard, professional growth and development, and influence on career mobility.
‘Before the existence of the IRC, the IR core competencies, knowledge and skills for competent performance had never been defined,’ notes LaBranche. ‘The IRC can positively affect the profession by defining its best practices, raising awareness through a rigorous credential, providing a service valued by professionals and employers alike, and increasing the legitimacy of NIRI to be a voice for members to government officials.’
Globally recognized standard
Complementing NIRI’s mission, the objective of the IRC program is to maintain a globally recognized standard through the development of a certification program and to advance the practice of investor relations and the professional competency and standing of investor relations practitioners.
‘The IRC program development was a very thoughtful, deliberate and rigorous undertaking,’ points out LaBranche. ‘With the extensive help of highly regarded experts from the investor relations profession, and guided by reputable consultants from the credentialing field, the main components of the IRC program were defined.’
These components are the eligibility requirements, competency framework, examination blueprint, renewal requirements, code of conduct and all related policies and procedures. These aspects of the program were developed following credentialing standards and best practices and were based on a formal study called the Job Task Analysis.
The new IRC renewal program model is also based on the findings from the Job Task Analysis and related studies. Its purpose is to promote the continued competence of IRC certificants, where competence is defined as demonstrating specified levels of IR knowledge and skills at the time of initial certification and throughout an individual’s professional career.
The IRC renewal program includes various types of activities, including professional engagement, membership, speaking, presenting and writing, building knowledge and skills, attending programs with educational content – such as NIRI’s annual conference, seminars and workshops – attending select IR Magazine events, and contributing to the IR profession through mentoring, coaching and volunteering.
‘The requirements and procedures that are established as part of this certi cation program will assist the credential holders in maintaining competence and staying abreast of all new industry changes,’ asserts LaBranche.
Overall, there are an impressive 172 credentialed IR corporate practitioners and counselors in the US and overseas, including IR practitioners at 114 publicly traded companies; 41 percent of these professionals hold a vice president title or higher. ‘These certi cants represent a wide demographic spectrum and have an average 11 years of IR experience,’ adds LaBranche.
Planned enhancements
Are there plans to develop the certification program? ‘Thanks to our committed volunteers and subject matter experts, efforts are constantly taking place to identify opportunities for enhancement and improvement to meet best practices and keep the program valid and relevant to the IR profession,’ says LaBranche.
From an operational perspective, NIRI recently upgraded its credentialing engine, which will streamline the submission of exam and renewal applications, connect certi cants with their completed professional development units and allow certi cants to identify and focus on areas of de ciency in a more structured and objective manner.
LaBranche also points out that the IRC holds wider bene ts for the IR community. ‘It is the only US-based certification for investor relations practitioners and will be the must-have validation of IR competence,’ he explains. ‘It takes a long time to create awareness of the existence and importance of a voluntary credential. As the IRC becomes a more recognized credential, it will broaden awareness of the importance of IR.’
Case study: Laura Kiernan
Laura Kiernan, CEO and founder of New York-based High Touch Investor Relations, has been an IRO for various companies in multiple sectors for 20 years and in business and corporate finance for 30 years. High Touch Investor Relations serves primarily private, micro, small and mid-cap companies.
On undertaking the NIRI certification, Kiernan says: ‘I wanted to differentiate myself from other IR practitioners. Having the certification helps me stand out relative to my peers.’
She believes she gained a great deal from the certification: ‘It validated my level of knowledge and it has set me apart from my peers. I think the profession is elevated by having a certification. I personally enjoyed the book-study guide, which helped me think through my own IR program and how I’ve approached IR strategy.’
Kiernan also notes the importance of certification in IR career terms. ‘The profession has evolved significantly over the past 20 years that I’ve been in investor relations, and in a positive way,’ she says. ‘IR practitioners are being paid much more, their credentials have been improved and the competition has significantly increased, in my view, with all of the changes that have happened on the sell side. Certification is a way to stand out in this highly competitive talent pool.’
Case study: Michele Backman
Michele Backman’s roles have centered around investor relations and capital markets for more than 20 years, having advised companies on best practices in IR and been a partner to them in roles at three European investment banks – HSBC, BNP Paribas and Deutsche Bank – as well as at Thomson Reuters.
Now head of the IR advisory group for depositary receipts at Deutsche Bank, Backman says: ‘I decided to sit for the exam as a personal challenge, more than anything. It was important to me that I test my knowledge and identify areas where I could improve and enhance my skills.
‘The other charterholders have impressive experience, so this was another motivator – being a part of this group showcases the strength of the IR profession and the diverse backgrounds that inform what we do.’
There are many ways to describe a career in IR, says Backman, and she believes the IRC brings recognition of this. ‘It’s a unifying element and creates an even stronger community of people dedicated to the profession,’ she says. ‘Whether you are in the rst few years of IR or a veteran, the IRC highlights the fact that you are well rounded. Having the IRC can certainly help your career because you will be viewed as someone who thinks critically on these topics and stands out.’
This article originally appeared in the Summer 2019 issue of IR Magazine.
