Many people know about the role of Media Relations Manager, but they have not clear what function the Investor Relator plays within a company. Obviously, it depends on the people I’m talking with, but for many the role of the Investor Relator is new.
When was created the Investor Relations department?
It is now years that ‘Investor Relator’ represents an indispensable role for listed companies in the financial markets. It has become mandatory as of July 2002 with federal law Sarbanes-Oxley Act enacted by the United States government as a result of various accounting scandals that involved major American companies. These scandals caused such great mistrust on the part of investors in the financial markets that it was necessary to improve corporate governance and ensure transparency of the accounts.
What role does the Investor Relator?
The Investor Relator is the company figure that manages relations of a listed company with investors, shareholders, government organizations and the overall financial community. The IR Department is closely integrated with the company’s accounting department, the legal department and the executive management team (CEO, COO, CFO).
One of the main tasks of Investor Relator is to provide investors with an update of the Company’s business and offering them the tools necessary to make investment decisions.
The Investor Relator also interfaces with financial analysts who analyze the company, in order to know their recommendations, their estimates for the future and their points of view about the Company.
The Investor Relator also organizes meetings, press conferences and private meetings with investors (known as “one-on-one” briefings), updates the IR section of the company website, and prepares the drafting of presentations and reports of annual and interim results.
Depending on the size of the Company, the IR activities are conducted by an internal department of Investor Relations (IR), but sometimes it also be supported by external consultants.
My experience in IR department
From 2015 I began my experience of Investor Relations working at the company Cdr Communication, Milan-based Investor and Media Relations consultancy. We work with companies listed on the MTA and AIM market of the Italian Stock Exchange and belonging to different industrial sectors.
For our clients we carry out the following tasks periodically:
- We update the information on the company brochures and on the website;
- Support in the creation of presentations and press releases (for example for the publication of annual and interim financial results);
- We benchmark activities of major competitors;
- We monitor the performance of the stock and markets;
- We organize periodic meetings with institutional investors through roadshows and visits to the company;
- We maintain contacts and coordinate meetings with leading brokers;
- We coordinate interviews and meetings with major media;
- and much more…