A lot of IROs spend significant time thinking about how to achieve a full and fair valuation for their company. We think using valuation as the primary objective for IR represents a false premise. IROs are not putting meaningful capital to work, so therefore are unable to directly impact valuation. Secondly, a full and fair valuation cuts both ways. No management team wants to reward an IRO for a 30% decline on an earnings miss and reduction in guidance. The problem is that 30% drop represents a full and fair valuation.
