Introduction
Janet Dignan, founder of IR Magazine, introduces this year’s report
Few people in Europe or elsewhere will remember the year since our last awards in June 2020 with warm feelings. Many in the IR field have had their working lives change dramatically: no traveling, no face-to-face meetings, and – in some sectors more than others – a tough year to report on to investors and others.
Nevertheless, our research over the past year – in Europe, Asia, the US and Canada – has demonstrated the adaptability of IROs. And the investment community has been impressed by their ability to exploit the possibilities. As one US sell-sider puts it: ‘Covid-19 has been a blessing for IR interaction. Gone are the days when you had to fly to an event, listen for two hours to rehashed content, then fly back. Now analyst events have been democratized: whether you’re a big or small investor, an independent or a powerhouse, you have the same access. Virtual events are focused on content and the BS has gone. In my opinion, Covid-19 is the best thing that has ever happened to IR communications.’ That might be an extreme view and it certainly remains true that IROs, like everyone else, are looking forward to a pandemic- free future. On the investment community side, people emphasize the value of looking into the eyes of an IRO when he or she is answering an awkward question. As one puts it: ‘It’s difficult to build trust with the lack of personal contact.’ And given that IR is almost entirely built on trust, such personal encounters could hardly be more crucial.
Operational costs More prosaically, the pandemic saved companies a good deal of money. All those hotel rooms, flights, breakfasts, lunches and dinners come at a significant direct cost, never mind the time expenditure. So will things return to the old ways? ‘I do hope not,’ volunteers one London-based IRO. ‘I’ve done enough trans-Atlantic flights to last me a lifetime. And the virtual voyage has been a real voyage of discovery.’ He might be pleased to know he’s not alone. Indications are that nearly three quarters of IROs are not planning to go back to physical investment meetings this year, at least. But if we’ve learnt one thing from this pandemic, it’s surely that none of us knows what the future holds. Still, we can at least hope that it will include a return to the direct contact on which investor relations so clearly depends, as well as the shared drinks and meals that so effectively oil the wheels of the profession. Until then, we recognize the IROs and other executives whose skills shine through in this investor perception study. They’ve shown their IR ability as well as the flexibility and adaptability that the new normal has required. Congratulations to them all.
