Mirror, mirror on the wall – who’s the fairest CEO of all? Executive beauty contests are a dime a dozen today, but no one (to our knowledge) ever set out to determine which CEOs are most admired by IROs specifically for their prowess in IR.
So we decided it was about time and called up around 100 IROs working for US-based public firms and asked: who would you work for if you could work for any CEO in the country? Around 20 IR professionals answered us and their responses form the basis of this informal survey.
Job satisfaction among IR participants seems quite high: despite being told their comments would remain anonymous, two thirds of the IROs we spoke to identified their own CEO among their top choices. In fact, several nominated only their own CEO. On the flip side, one IR person responds candidly: ‘Well, it’s certainly not my CEO – or any in our sector!’
Respondents also offered interesting insights into what makes a CEO IR-savvy. ‘CEOs are so much better today because they have grown up in a generation that appreciates the value of IR and are willing to have relationships with investors and the Street,’ says one IRO who has worked with five CEOs over a two-decade career. ‘Old-style CEOs played a game of making themselves a scarce commodity to make themselves feel important. That’s out of fashion now.’
‘Great CEOs recognize they have an obligation to their shareholders and understand it’s part of their job to help investors understand the direction of the company as well as to guide the company in that direction,’ says another IRO. Clearly IR is a critical part of a CEO’s job description – and those featured below appear to be taking that responsibility seriously.
The winner
Jeffrey Immelt, the ninth chairman in General Electric’s history, took over the company reins from the legendary Jack Welch four years ago this September and was the top choice among IROs as the best CEO to work for in the US.
A GE-lifer who came to the company fresh out of Harvard Business School, Immelt garnered an honorable mention in the category of best IR by a chairman, president or CEO at the IR Magazine US Awards in March of this year. He was nominated in an independent perception study* of buy-side analysts and fund managers, sell-side analysts and retail investors.
According to one survey respondent, ‘[Immelt] is the best conveyer of strategy and growth prospects’ – so it’s hardly surprising that IROs clamored to join the investment community in heaping praise on him. One IRO describes him as simply ‘awesome’, another says he is ‘great to work for’, and several say he ‘just gets it.’ One IRO who met Immelt was ‘blown away that this fellow running all GE’s global businesses was able to stop and make intelligent conversation in depth about the capital markets.’ IROs who ranked Immelt as their top CEO felt it was no coincidence that he was also running a great company.
Bill Cary, VP of corporate investor communications at GE, says: ‘Not only does Immelt take IR seriously, but he also invests much of his personal time in making IR successful.’
* Investor Perception Study, US 2005. Published by IR magazine. Available from [email protected].
Runners-up: The following CEOs received several nominations from IROs across the US
Setting the tone
Anne Mulcahy, like Immelt, is a lifer at her company and took over as CEO in 2001. One IR respondent says she ‘sets the tone’ for IR at Xerox, and is often praised for her efforts throughout the company’s restructuring. ‘She hasn’t had an easy job but she’s stayed right out there,’ says one respondent.
Her own IRO also sings her praises. ‘Anne is an exceptional leader who recognizes that driving revenue and shareholder value is a job shared at every level of the organization,’ says James Lesko, vice president of investor relations at Xerox. ‘We have an extremely talented, diverse and committed work force. Her leadership has helped reinforce a culture of ownership and a common objective to drive the company forward to growth.’
Filling big shoes
Stepping into Michael Dell’s shoes and showing the investment world how well they fit really impressed some IR respondents who named Kevin Rollins as someone they’d like to report to. ‘He understands how to present an investment thesis,’ notes one respondent. Others marvel at Rollins’ ability to make Dell’s complex story seem simple.
That her boss was chosen for this honor is no surprise to Dell’s vice president of IR and corporate communications Lynn Tyson. ‘Every IRO wants a seat at the table,’ she explains. ‘Kevin not only gives me that as a member of Dell’s global executive management committee, but he also expects me to use it. He challenges me personally to be a business executive first and an IRO second.’
Celebrity stature
‘It just seems like he’s really with it,’ intones one IR respondent in nominating John Chambers as the best CEO to work for in the US. Chambers, who celebrated his tenth anniversary as CEO of Cisco Systems in January, took over the helm when revenues were a measly $1.2 bn. Because he’s out front and center, many IROs feel assured Chambers is a willing participant in IR.
Another respondent cast his vote for Chambers on the basis of what he’d heard from insiders at Cisco, who describe him as ‘genuine’ and give him high marks for investor relations.
All true, certifies vice president of investor relations Blair Christie. ‘John recognizes the value of a strong relationship with the investment community,’ she says. ‘He is very balanced, open and transparent, which makes our job as IROs easier.’
Level playing field
In spite of rumblings stirred by the imminent publication of an unauthorized biography (which, according to the New York Times, confirms Jobs’ obsession with information control), several IROs fantasize about working for tech visionary Steve Jobs.
‘Any successful person has high standards,’ says one IR person. Never mind the rumor that Jobs will have nothing to do with investors – a chance to take a crack at working for this icon is what excites those who name him. The reality is that Apple’s IR goal is to provide a level playing field, which it does by allowing no contact with anyone, explains Gene Munster of Piper Jaffray – so it’s up to analysts to figure out what’s going on without the benefit of interaction with the company.
