Successful companies that project a distinct image will be more attractive to investors, especially if they have an articulate chairperson on the board of directors to speak for them. But without a lucid vision and strategy and clear prospects, this image will only be partially effective. It is vital to have a clear,wellstructured investor relations policy that is managed effectively and pro-actively. This requires time and attention as well as skill and experience.
In most companies, several people are usually responsible for investor relations activities. These range from the chief executive officer (CEO) or chief financial officer (CFO) to the public relations manager or investor relations manager.The secretary to the board of directors may also be included. It is often a question of finding the person who is most suitable. The final responsibility for investor relations policy lies with the company’s CEO or CFO. They deal with the main aspects of policy such as the company’s vision, strategy and prospects. The policy aspects of investor relations and the responsibility for these aspects can best be handled by an investor relations manager.
Investor relations managers have a similar position in relation to the board of directors as human resources managers or marketing managers and are responsible for investor relations policy and ultimately for marketing their company’s shares.They manage their own department, which co-ordinates and carries out investor relations policy. Communication with interested parties takes place through investor relations managers instead of through the CEO or CFO. Investor relations managers enjoy the trust of the board of directors and have direct access to all board members.They are aware of all developments that take place in the company, are familiar with the company’s policies, and know how to communicate these to interested parties. In addition, they inform the board of directors about developments in financial markets and how the market perceives the company.They help carry out investor relations policy, advise the board of directors and coordinate policy horizontally with divisions such as business development, marketing and corporate communication.
Investor relations managers should preferably have a financial background, be familiar with the main players in the financial arena, and know how public capital markets work. In addition, they must possess good communication, marketing and analytic skills, be flexible and be proficient in several languages. In other words, they must be generalists with knowledge of many different fields, a variety of skills and the ability to take on the important task of promoting the company’s shares. Investor relations managers who can perform these duties and responsibilities efficiently will make the company more financially attractive and ultimately increase the value of its shares.
Source: EuroNext's Investor Relations Guide (see IR Downloads) |
