September has never been my favorite month. The joys of summer are over for another year and for those of us in the northern hemisphere, all that lies ahead is the long run to Christmas. The days shorten, the skies darken and everyone gets back to work as the tans begin to fade.
IROs can be forgiven for not looking forward to getting back behind their desks this time around. Now is not an easy time to be an investor relations officer. It seems only moments ago that the IR community was full of unbridled optimism and the markets resembled a dream casino where everyone was a winner. But as the bubble burst, profits fell and investors, many of whom have never before experienced a serious market downturn, want answers.
Issues of shareholder rights and corporate governance are again topping the agenda in many regions. Nowhere more so than in Germany. The Neuer Markt has undergone a painful change of fortune, confidence in the country’s fledgling equity culture has been sapped, and now listed companies are the targets of investors and politicians keen to respond to the worries of the shareowning electorate. New regulations on the Neuer Markt and a government committee investigation into corporate governance and shareholder rights may dictate great change. Many in continental Europe and indeed Asia, where corporate governance is now a constant topic of discussion for regulators and the media, look to the UK and US as examples of good, if not best, practice. Many companies are being pushed to elect more independent directors. But as our cover story reveals (The war of independence), independent directors are no guarantee of shareholder satisfaction.
The mainstream media are paying more attention to shareholder revolts. In the UK, Korea, Australia, Germany… around the world the press is hungry for stories of mismanagement, share price falls and investor fury. The business media are now crucially important to the success of a listed company, as our story Prime time finds. On a recent visit to the US, I was surprised at the high media profile and celebrity status accorded to top CEOs. Given growing media interest in issues of disclosure and governance, IROs can ill afford to ignore the role played by the media in forming opinions among both investors and the regulators.
Faced with the dreary journey into winter amid increasingly uncertain markets and growing investor scrutiny, northern hemisphere IROs could be feeling a little down. There are two options: escape south of the equator; or deal with it. Practicalities dictate most are stuck with the latter option. But don’t worry – Christmas is a mere three months away.
