The first part of this two-part article focused on key plan components for creating or refreshing an IR program. This section identifies tools and resources available to an IR department, and how to leverage them.
Once the scope of an IR program has been determined, the focus shifts to execution. Knowledgeable and transparent IROs are highly valued by shareholders and analysts alike and this segment directs IROs to helpful resources to make sure they are maximizing their own value.
Internal
Internal resources are free and at your fingertips. Building relationships across your organization is essential to being well informed. The key drivers underlying events and trends within your company can never be fully appreciated by reading reports; valuable color comes from conversations with those directly involved in the events.
The size and geographic reach of a company affect an IRO’s ability to establish connections throughout an organization, so it is crucial to cultivate C-suite support for your efforts in this area.
Lastly, tap into the external resources accessed by your colleagues including materials such as trade publications, industry studies and competitive data to supplement the information you receive directly.
External
A description of every external resource and service provider is beyond the scope of this article, but the list below identifies the primary services and resources an IRO should consider:
- Peer disclosures: a key source of competitive intelligence
- Sell-side research: another key source of intelligence as it relates to your own company, your peers and your industry. In addition, sell-side macroeconomic reports can be quite useful as a means of understanding larger trends.
- Trade publications: an essential means of keeping up with industry developments
- Stock watch services: these vendors analyze periodic movements in your company’s shares and track trading patterns. They also provide useful targeting information that will increase the effectiveness of your outreach to, and meetings with, the buy side
- Stock exchanges and trading desks: individuals at both can provide useful insight into trading patterns and unusual activity in your stock
- Financial printers and EDGAR filers: these firms print and mail key financial documents such as 10Ks and annual meeting materials and also handle the filing of SEC documents via EDGAR
- Proxy solicitor: used in connection with annual or special meetings of shareholders. They collect proxies and facilitate outreach to individuals on the buy side responsible for corporate governance decisions
- Transfer agent: handles all matters relating to share transfers and dividend payments
- Newswire service: used to disseminate press releases in a manner that satisfies Regulation FD
- Annual report designers and graphic artists: to provide written or artistic support – Financial communications consultants: these firms provide a wide scope of work. Typical services relevant to IROs include media monitoring, financial media public relations, media training, crisis communications counsel and perception studies.
- IR resources: NIRI is the largest trade organization serving the profession. Select universities offer relevant classes. Organizations such as the publisher of IR Magazine and many sell-side firms also sponsor useful conferences. In addition, related organizations such as those serving attorneys and accountants produce useful conferences and publications.
Conclusion
The purpose of this two-part article has been to provide IR practitioners with a brief outline of key considerations and key resources. Every IR department must reflect the unique needs and culture of the company it serves. Successful IROs, regardless of departmental structure, excel at providing varied constituents with the information they need to develop a comprehensive understanding of, and appreciation for, the IRO’s company.
Marisa Jacobs is the vice president, investor relations at Express
