Alexander V. Laskin - Investor Relations and Financial Communication

As we discussed earlier, many investor relations professionals do not start their careers in investor relations. Instead, they transition to investor relations from accounting, finance, communications, law, or operations of the company. Thus, one way to land an IRO role is to start working at a large corporation in almost any capacity and show an interest in investor relations. A chance to transition to investor relations may eventually present itself.

At some companies, IRO is a rotational role. What this means is that the role of IRO is assigned for a year or two before a person transitions to another job, and another person steps into the role. General Electric is one of the examples of a company with rotational IRO responsibilities. The benefit of this approach is the ability to train future executives in the role of an IRO. As mentioned previously, IROs must become experts in everything the company does and develop a deep understanding of the company as a whole – its mission, its value, its unique business proposition – this is very useful for future leaders of the company. As a result, before advancing somebody to the executive role, it is beneficial to have that person serve in the role of an IRO for a couple of years.

In addition, a big part of an IRO’s job is externally oriented, especially one-on-one and small-group meetings with institutional investors. These high-stakes meetings are great training opportunities for future corporate executives who would be involved in plenty of high-stakes meetings in their leadership roles. It is also beneficial to start building relationships between investors and future company leaders as it helps establish trust and credibility – a solid foundation for mutual understanding. Future executives learn to think from the investors’ perspective and learn to appreciate their perspective.

Another access route into investor relations jobs is through an agency. Many financial communication agencies are willing to hire new graduates for entry-level positions. Whether these graduates come with a background in finance and accounting, or public relations and strategic communications, agencies are willing to provide additional training to beef up their skill sets and make them proficient in what is required for investor relations. For example, Corbin Advisors, an investor relations and financial communication agency with headquarters in Connecticut, hires recent graduates for entry-level jobs, and even provides internship opportunities for current students in graduate and undergraduate programs. Beginning a career at an agency can expose you to many different companies: from the largest Fortune 100 corporations to start-ups looking for their first investors. This helps future IROs build relationships and practice a variety of investor relations and financial communication tasks. It is not uncommon for an agency employee to transition to the in-house role at one of the clients that this employee used to work with. In fact, quite a typical route in investor relations is when a student after graduation joins a financial communication agency, and, then, several years later, leaves the agency to take a job at one of the corporations that is a client of that agency, as they would have developed a relationship with this company and would have proven their value.

Many of the professional associations have job boards where one can search for job vacancies. For example, if you are interested in investor relations jobs, the NIRI career center is a great resource. People interested in financial communication jobs in the banking sector may want to check out the PRSA job center. People interested in fundraising and donor relations can look for jobs on the AFP website.

For example, at the time of writing, one of the jobs listed on the NIRI career center website is for investor relations manager at Bruker Corporation. The position of manager of investor relations is described as a job that “will combine business acumen, financial modelling and analysis, investor and corporate communications expertise to develop and deliver clear, differentiated messages and effective strategies for communicating with internal and external stakeholders” (NIRI, 2020). These are the job responsibilities listed in the announcement for this position:

Serve as a corporate spokesperson and day-to-day interface for existing shareholders, prospective investors, sell-side analysts and other external constituencies.

Together with the Director of IR [investor relations] and Corporate Development, plan and execute a strategic, comprehensive and proactive investor relations program and annual plan. This includes maintaining existing investor relationships and proactively targeting new investors to help the Company achieve its optimal shareholder mix.

Effectively organize Wall Street conferences, Non-Deal Roadshows, meetings, Investor Days and other events with the goal of maximizing the effectiveness of management time with IR activities.

Manage the quarterly earnings release process including conference call logistics, conducting business and financial analyses, drafting earnings releases and earnings call slides and scripts, preparing talking points, and preparing Q&A for the management team that cover financial, business, market and competitive issues.

Prepare presentations for industry and investor conferences, meetings, and events presented by the CEO, CFO and other management.

Provide business, financial, and market intelligence to the senior management team and identify industry trends, shareholder concerns, and competitor actions that might impact the Company.

Monitor analyst reports, including consensus and analyst expectations, and summarize key insights.

Monitor trading activity in the Company's stock and trends and changes in shareholder ownership.

Write and develop external communications including press releases, regulatory filings, annual reports and other investor collateral such as investor kits, fact sheets, and newsletters. Maintain the Investor Relations website.

Maintain the Investor Relations database and processes that monitor and measure the effectiveness of the Company's investor relations and communications efforts.

Contribute to the quarterly Board of Directors IR report and generation of Board materials.

Ensure compliance with corporate policies and securities regulations.

Maintain relationships with contacts at institutional investors.

Manage and maintain vendor relationships within the IR function.

Play a leadership role in making the function and the Company more efficient and effective.

As needed, participate in important business/function initiatives or special projects and manage them to successful completion.

Work and manage effectively across the Company's matrixed organization to improve efficiency and achieve desired results.

Perform other duties as required.

As mentioned previously, investor relations is a rather small profession. There are not that many IROs. Once you enter this profession, you learn about your peers and about job opportunities quickly. As a result, word of mouth is also a very important avenue for finding a job in this field. It is important to take advantage of various networking opportunities – virtually or in person, locally or nationally. Annual professional conferences are among the best networking opportunities available. NIRI’s annual conference is usually held in June alternating between the east and west coasts. PRSA’s annual conference is usually held in October, and also moves from city to city. Other professional organizations organize conferences as well. In addition to being great networking opportunities, these events serve as excellent professional development events.