Introduction
Welcome to the IR Magazine Investor Perception Study – US 2021, the report of the research undertaken among US investors and buy-side and sell-side analysts to discover which companies are providing them with the best investor relations service. This year’s IR Magazine Awards research differs from the 2020 version in a range of ways. That’s hardly surprising; there are always changes. Like everything else in the past year, however, the changes this time are dominated by Covid-19.
We introduced two new awards: one is for the best virtual event during the Covid-19 crisis; the other is for the best overall IR during the crisis. Some of the top companies in these categories, according to the investment community, are highlighted below.
First, however, here are some of the comments made in answer to our general questions about how IR has changed since the pandem-ic dramatically reduced in-person events and other meetings. Those questions concentrated on both the upside and the downside impacts of the crisis on IR. Here’s a summary of them.
The highest number of comments (69 in all) concentrate on improved electronic communications: • ‘Retail and consumer companies have been forced to be more visible on the internet and host virtual events, conferences and broadcasts. They have been more accessible, having to communi-cate things they have never had to before (such as opening and closing of stores, for instance) and in some cases taking the bulk of their business online. Overall, the crisis has forced them to improve their virtual communications with customers and investors alike’ – sell side • ‘Buy-side clients have been more willing to get on conference calls, making it easier to touch base with customers’ – sell side • ‘As they are now all virtual, I am able to rewatch conferences in my own time’ – buy side • ‘Thanks to the increase in the widespread use of videoconference calling, there have been weekly calls, keeping me more in the loop than ever before’ – sell side • ‘IR is able to reach broader and more geographically diverse investors, and all team members can attend’ – buy side
The next highest number of comments (34) focus on increased IR team availability: • ‘I’ve been hearing from people I normally hear nothing from. I put that down to the fact that they are not traveling so they have a lot more time on their hands’ – sell side • ‘Responses from investor relations people have been noticeably quicker’ – sell side
Twenty-nine respondents cite improved management availability: • ‘Now mostly virtual, access to management has improved significantly. There is no longer the need for face-to-face meetings and this cuts down the travel time, which in turn improves managers’ availability. Access to people higher up in the company has gone up, and gone up meaningfully’ – sell side • ‘The pandemic has absolutely been beneficial to IR. Basically, it has freed up executive time: there is time to do way more now as we no longer have to fly to meetings. And Zoom has been a great resource that has enhanced corporate access’ – buy side
For 27 respondents the reduction in travel is a key benefit: • ‘To be able to successfully execute remotely is a step forward. I have watched analyst days, product demos and tech talks online. The attendance has definitely been better, probably because you no longer have to travel to be a part of it’ – sell side • ‘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’ – sell side
Finally on the upside, nine respondents note improved transparency and more complete information being provided: • ‘Companies have had to adapt by giving more specifics around liquidity plans and uses of cash’ – sell side • ‘There has been better communication overall. What has happened has led to different questions being asked and different sensitivities, so constant communication has been paramount’ – sell side.
There are 28 comments highlighting general disadvantages of the changes. Here are two typical examples: • ‘I don’t think the investment world will go back to how it was. In the past, IR has been about relationships but now it is going to be more about the product because you can have access without the relationship’ – sell side
