They say champions like to sign off on a high. That’s certainly what Covidien did at the IR Magazine Awards – US 2015 when it took home the large-cap award for best overall investor relations for a remarkable fifth year in a row. Head of IR Cole Lannum also picked up the award for best investor relations officer at a large cap for the fifth year running.
This year marked the final opportunity for Covidien to add to its IR awards haul. The healthcare firm ceased to exist as an independent public company in January 2015 following the completion of its $43 bn acquisition by Medtronic. Highlighting the dedication that has led to so many awards, Lannum explained how Covidien kept its IR department fully operational right up until the transaction completed.
‘We tried to make sure we didn’t just put our feet up and take the time off,’ he said at the awards. ‘Literally, until the deal closed, we were open for business every single day, still speaking to shareholders – it was a different mix of shareholders, as you might expect, a lot of risk arb guys, a lot of people who didn’t know the story that well – but we kept to our philosophy of treating everyone the same regardless of who they are.’
Another star of the awards was Ryder System. The transportation company took home the mid-cap grand prix for best overall investor relations and the best mid-cap IRO award for Robert Brunn. Wright Medical Group, meanwhile, claimed the small-cap grand prix for the second year in a row.
David Brancaccio of American Public Media returned to host the event, which saw hundreds of members of the US IR community gather at Cipriani Wall Street to applaud best practice and mingle with industry colleagues. On the night IR Magazine celebrated 20 years of the US Awards, other gongs included best sustainability practice for VF Corporation, most progress in IR for LinkedIn and best financial reporting for JPMorgan Chase & Co.
Covidien also retained its place at the top of the IR Magazine US Top 100 – a ranking created by adding together the scores from all awards categories – while Intel took second place for the third year in a row. After those two, however, it was all change with only one other company holding the same position as last year. The most remarkable shift saw ConocoPhillips rise 136 places, placing the energy firm third.
You can read profiles of the top 20 ranked investor relations teams in the IR Magazine Investor Perception Study – US 2015, which includes feedback from investors and analysts on IR practice areas, companies and individuals. To order a copy, please contact Andrea Pion at [email protected].
Grand prix for best overall investor relations
Large cap
Covidien
What the investment community says
‘Covidien is highly proactive in every aspect of IR’ – buy side
Mid-cap
Ryder System
What the investment community says
‘The IRO at Ryder, Robert Brunn, is extremely knowledgeable about the company. He is accessible and provides lots of data both on the website and through email alerts’ – buy side
Small cap
Wright Medical
What the investment community says:
‘Overall, Wright Medical has pretty much the best IR team and package in my world’ – buy side
Best investor relations officer
Large cap
Coleman Lannum, Coviden
What the investment community says
‘In my whole career as an analyst, the best IRO I have ever come across is Cole Lannum at Covidien’ – sell side
Mid-cap
Robert Brunn, Ryder System
What the investment community says
‘I have followed Ryder for a long time, and over the years Bob Brunn has earned my trust. I can take anything he says at face value and I like his non-flashy, no-hype style’ – buy side
Small cap
Julie Tracy, Wright Medical
What the investment community says
‘After conference calls we always get a call to see if there is anything else we need’ – buy side
Best IR by a CEO
Large cap
Michael Creel, Enterprise Products Partners
What the investment community says
‘As the former CFO, he has a good grasp of the numbers and understands where Enterprise stands in relation to the industry as a whole’ – buy side
Mid-cap
Ed Heffernan, AllianceData
What the investment community says
‘Having been involved in mergers and acquisitions and as the former CFO, Ed Heffernan has a wealth of knowledge he is happy to impart’ – buy side
Small cap
Robert Palmisano, Wright Medical
What the investment community says
‘Robert Palmisano demonstrated his forward-thinking approach by saying what he was going to do and then doing it. This involved selling off various parts of the business and establishing the company in Europe’ – buy side
Best IR by a CFO
Large cap, Home Depot
Carol Tomé
What the investment community says
‘Meeting with the CFO gives you real insight into the retail sector’ – sell side
Mid-cap
Worthing Jackman, Waste Connections
What the investment community says
‘The CFO wears two hats, finance and IR, and he wears them well’ – sell side
Small cap
Michael Scarpa, Children’s Place
What the investment community says
‘Michael Scarpa is exceptionally good at forecasting and this manages our expectations’ – sell side
Best financial reporting
JPMorgan Chase
What the investment community says
‘JPMorgan supplies all the data points I am looking for so I don’t need to search for anything’ – buy side
Best use of technology
Covidien
What the investment community says
‘Covidien stands out for its intelligent use of technology. The website is always up to date and emails are timely and relevant with a good commentary from the IRO’ – buy side
Best use of social media
T-Mobile US
What the investment community says
‘T-Mobile podcasts everything and it has developed a strong presence on social media’ – sell side
Best investor meetings
Polaris Industries
What the investment community says
‘Analyst meetings at Polaris Industries are held in conjunction with dealer meetings, providing access to management and dealers. This gives a different take on the company’ – sell side
Best corporate governance
Danaher
What the investment community says
‘Danaher’s corporate governance policy is clearly laid out and the executive compensation scheme is fair to both shareholders and executives’ – buy side
Most progress in IR
LinkedIn
What the investment community says
‘Ever since it brought in a former buy-side analyst – who is extremely well informed, well organized and a great communicator – LinkedIn’s IR has improved. The team now also has a former sell-side analyst and this brings another dimension’ – sell side
Best sustainability practice
VF Corporation
What the investment community says
‘VF Corp’s sustainability report stands out from others in the sector as it is so complete’ – sell side
Best IR during a corporate transaction
Medtronic (acquisition of Covidien)
What the investment community says
‘Medtronic has done a great job of the merger with Covidien. It has highlighted the changes and processes of the deal and really explained the finances transparently’ – sell side
Best crisis communications
Home Depot (credit card data breach, September 2014)
What the investment community says
‘The IR team has been top-notch in communicating with us about the credit card data breach and the downturn in the retail sector’ – sell side
Best IR for an IPO
Hilton Worldwide
What the investment community says
‘The team comprises a sophisticated group of people who both understand and care about what investors and analysts need’ – sell side
Overseas awards
-Best IR by an Asia-Pacific company in the US market: Silicon Motion Technology Corp (Taiwan)
-Best IR by a European company in the US market: Deutsche Post DHL (Germany)
-Best IR by a Latin American company in the US market: Cemex (Mexico)
Best in sector
-Communications: LinkedIn
-Consumer discretionary: L Brands
-Consumer staples: Walmart
-Energy: ConocoPhillips
-Financials: JPMorgan Chase & Co
-Healthcare: Covidien
-Industrials: Honeywell
-Materials: Sherwin-Williams
-Technology: Intel
-Utilities: Southern Company
Lifetime achievement award: JoAnna Morris
The award for lifetime achievement in investor relations is presented by IR Magazine and backed by the IR community, as represented by former winners.
This year’s winner, JoAnna Morris of General Electric, is one of the ‘unsung heroes of IR’, in the words of another veteran IRO. She joined the company in 1977 and became IR director in 1990, partnering with two CEOs, three CFOs and eight IR leaders during the last 24 years. She saw GE through the transition from Jack Welch to Jeff Immelt, through the financial crisis and through countless acquisitions and divestitures.
Her tenure has coincided with an era of massive change and innovation in IR, with GE consistently setting the gold standard, so she has had a genuine influence on the development of the IR profession over nearly a quarter of a century. One of GE’s top 10 shareholders provides this tribute:
‘Throughout turbulence in the markets, shifts in strategy and changes in operating management, JoAnna has been the representation of consistency for investors. No matter what the situation, we can count on her to be responsive to shareholders and to communicate an honest and fair message. There are few with her knowledge and wisdom, and few who are as accessible and willing to share it with investors. She brings a level of excellence to IR.’
This article appeared in the summer 2015 print issue of IR Magazine
