Like the idea of working overseas? If you’re British or American and have a capital markets or investor relations background, opportunities abound – because increasing numbers of continental European companies are looking overseas to fill their IR positions, from the head of department down.
There is nothing new about British and American IROs going to work for continental European companies, of course; there has always been a smattering due to the earlier development of IR in the US and the UK. What have changed are the numbers involved and the locations.
IR headhunters point out that some continental European companies have even begun to specify a preference for a Briton or American. Nor is the practice confined any longer to just the traditional ‘English’-friendly markets, such as Scandinavia or the Netherlands, or to the international banks, such as UBS, in Switzerland. Several French companies have hired British or American IROs in the past few years – LVMH, Carrefour and Lafarge, to name but three.
Italian companies, such as Telecom Italia, are also joining the trend. Five years or so ago it would have been almost unheard of to have a non-national in such a position. Today, management teams are beginning to view it as an advantage.
Dominant capital
So why the change of heart? Ian Roundell, director of investor relations at Dutch and Belgian financial services group Fortis, says the dominance of the US and UK markets in terms of assets under management is probably the key. Roundell has spent the last two years working for Fortis but is now in the process of moving back home so his children can be educated in the UK. He believes having English as your mother tongue gives you an advantage in terms of relating to US and UK-based fund managers and analysts.
‘There are subtleties and nuances in communication with other English speakers that continental Europeans might not get,’ Roundell explains, adding that this does not in any way make him less humble about his own lack of linguistic ability.
The mother tongue issue is also raised by Gillian Karran-Cumberlege, head of investor relations at Volkswagen for the past three years. She notes that continental European companies are increasingly tapping into the global capital markets and, as such, having a native English speaker on board certainly helps. On the other hand, she points out that it really helps if you can speak the local language, too – otherwise you could end up being quite marginalized.
‘The vast majority of the assets under management in the world are under management by English-speaking people – that’s just how it is,’ notes Heather McGregor, an IR recruitment specialist at London-based Taylor:Bennett. ‘IR has also tended to be more advanced in the US than in the UK, and more advanced in the UK than the rest of the world [outside of the US].’ She points out that this can lead to targeted recruitment of UK and US people for best practice reasons.
Consolidate and diversify
But there is nothing new in any of this. The UK and US have long been at the head of the IR game and, except for Tokyo’s more Japan-focused fund managers during the 1980s and early 1990s, always had the highest sum of assets under management. What has changed is the need and ability of continental European firms to tap into that capital.
UK and, particularly, US fund managers have been geographically diversifying their portfolios over the last three to five years. The introduction of the euro accelerated the trend, as have consolidation in the asset management industry, the move toward sector-based rather than national analysis, and the slowdown in the US economy. Nowadays, London accounts for a far greater percentage of the European sell side, particularly with many of the larger US houses choosing to base their European operations in London. The result? Even more of the analysts and fund managers have English as their mother tongue – so it’s hardly surprising continental European companies want their IROs to be part of the gang.
‘It’s definitely a question of trading flows and where the money is,’ says Jonathan Seabrook, head of investor relations at Switzerland’s Syngenta. Seabrook joined the agrochemicals company last year, in the wake of an earlier IR career at SmithKline Beecham (now part of GlaxoSmithKline) and a spell in London’s capital markets. He points out that continental European companies want people who understand how the London and US capital markets work and can relate to the professional financial community in their language, both linguistically and technically.
Lingua franca
Factors that have worked as a barrier to this pattern of recruitment in the past are increasingly disappearing, too. Seabrook says Syngenta’s corporate language is English and believes many continental European multinationals now fall into the same camp. Keith Russell, senior vice president of investor relations at Finnish forest products company Stora Enso, says this is the case with his company: English is both the functional and the official language.
Russell was recruited in 2002 and the headhunters were told the company had a strong preference for a non-Nordic national. The management team was in the process of moving the functional head office to London even though the firm remains based in Helsinki. ‘Having a non-Nordic person in the IR role was not an absolute prerequisite but the management wanted to diversify the group and make it more international,’ explains Russell, a Briton educated in the US whose English has an American twang.
He now works for Stora Enso from its London office and travels to Helsinki only infrequently for internal meetings. ‘The management felt the role required someone with a broader international background, particularly with contacts and experience in the UK fund management industry,’ Russell comments.
With a background in investment banking in London – much of it dealing with Scandinavian companies – Russell was evidently viewed as a good bridge between the Nordic and British cultures. Indeed, he stresses the need to be aware of the cultural and management differences between various markets before stepping into an IR role outside of your locality.
‘There are differences and it is foolish to pretend they don’t exist,’ says Russell. ‘There are even differences between Swedish and Finnish styles, for example, let alone between the Nordic countries and the UK. You have to be very aware of those differences and comfortable operating in that environment.’
Horses for courses
Whether the trend toward recruiting IR staff from the US and the UK by continental European companies continues is another question. David Mounde, head of the communications and IR recruitment practice at Benchmark Search, says the specifications drawn up by each employer still depend very much on the size of the company, the audiences it is trying to reach, and where it is listed. He does not think ‘national’ preferences will ever override who is best for the job but admits that, in some cases, English as a mother tongue might be a deciding factor.
‘Continental European companies tend to say, Find me an expert in our field who also has the relevant skills and background,’ Mounde points out. By contrast, UK companies have a greater tendency to want actual IR experience. ‘It all comes down to added value and the company’s view of IR,’ Mounde adds. ‘If the firm has a progressive view of IR it might be more willing to look at alternative backgrounds and knowledge.’
Before buying your ticket
When the headhunter calls with your dream job offer, take time out to consider whether your new location and employer are all they are cracked up to be. Read through the following checklist before packing your bags and buying your cheap flight.
Learn or hire local language ability. Preferably you should have the linguistic skills yourself but, if you don’t, make sure you have someone on your team who speaks the local language who you can rely on to keep you in the loop.
Be aware of cultural differences. Do your homework and know what to expect in terms of different management styles and practices. Accept that things will not happen in the way you might be used to. You will not change a corporate culture overnight, or probably at all.
Check out the commitment to IR before accepting the job. Different nationalities and management teams have widely varying commitments to IR. Ensure you will have the backing of management, otherwise you may find yourself banging your head against a brick wall.
Enjoy being on the road. Being based in continental Europe while hired specifically to target the UK or US asset management industries can mean even more travel than normal. You will also find that more of your vacation time is spent hopping on planes to visit friends and family.
Think about the impact on your private life. The perceived glamour of working overseas may be less thrilling when you realize it has had a negative impact on your personal life. You might find yourself working long hours with no close friends or family for support.
