How much time does management spend on IR activities?
Reporting structure
Small-cap IR departments are more likely to report to the CEO than IR at other cap sizes. Although half of small-cap IR teams report to the CFO, more than a third report to the CEO compared with an average of 23 percent across all cap sizes.
Time spent on IR
CEOs are also more involved in IR at small-cap companies when it comes to time spent on investor relations. Although senior management at small-cap companies spend the same amount of time in total on IR, the CEO spends on average four more days than the average for all cap sizes, while small-cap CFOs spend an average of four days fewer.
Time spent on IR by senior management has remained relatively consistent over the past eight years. In 2012 the average number of days small-cap senior management dedicated to investor relations was 42, while for companies of all cap sizes it was 43. In 2019 the average number of days spent on IR by both small-cap and all-cap senior management was 45.
Meetings and roadshows
Senior managers at small-cap companies are more likely to attend meetings with investors than senior management at other cap sizes. In the past year they have attended 58 percent of investor meetings compared with 45 percent across all cap sizes. But senior managers attend more meetings in real terms at other cap sizes due to the higher number of overall meetings held by these companies.
Small-cap CEOs are more likely to go on the road, with small-cap bosses going on nearly two thirds of all roadshows, while CEOs among all cap sizes typically go on a third of roadshows. Just 6 percent of small-cap roadshows involve no senior management.
Access to senior management
When it comes to frequency of contact, senior managers have similar involvement in IR at small-cap companies as they do at other cap sizes. More than three quarters of small-cap IR departments meet with their CEO at least monthly to discuss IR issues, while 93 percent meet with their CFO with the same frequency. CEOs at small-cap companies have more regular contact, with 45 percent meeting each week to discuss IR issues, compared with 40 percent across all cap sizes.
Contact with the board
Half of small-cap IR departments meet with their board of directors at least quarterly. This compares with 37 percent of all IR departments regardless of cap size. Less than a quarter of small-cap IR departments never meet with the board, compared with 31 percent of departments across all cap sizes.
Board diversity
There is less concern about the issue of board diversity at small-cap companies. Slightly more than three in 10 small caps have targets for increasing board diversity, compared with 38 percent across all cap sizes. This is possibly because there is less external pressure on them. Just over one in five small-cap companies has received questions from investors on board diversity in the past year, compared with 35 percent across all cap sizes.
