Capital Markets / Investor Relations in Two Minutes or Less
Special Teams and Investor Relations
Games are often won and lost by the performance of Special Teams.
An outstanding Special Teams performance, such as Edmonton exhibited in Game 5 of the Stanley Cup Finals, will always win games. A poor performance will cost you games.
In Game 5, the Oilers were out of this world on special teams.
The Oilers converted another short-handed goal on the penalty kill (PK).
The Oilers were also 2 of 5 on the Power Play (PP).
A short-handed goal and 40% Power Play conversion is out of this world.
There is no excuse to lose with such a performance.
Investor Relations represents the Special Teams of Corporate America.
What Is Required of Special Teams?
There are two major functions of ice hockey special teams.
Score goals on the Power Play.
Prevent goals on the Penalty Kill.
Throughout the ebb and flow of the game you will be called to switch between these skills sets at a random moment.
Special Teams in Investor Relations
Much like a hockey team, an Investor Relations Officer (IRO) or Investor Relations Team, will have to switch randomly between offense and defense throughout the tenure of a given IR program.
More importantly, IR as special teams become important because the CEO and CFO cannot do it all alone.
The Four Components That Comprise Outstanding Investor Relations Special Teams
Communication: Can you speak Wall Street? Can the IRO simplify and curate the company narrative into a digestible and accessible format for the Buy-Side and Sell-Side?
Credibility: The IRO and IR Team must relentlessly convince investors that the C-Suite is the best and right team for the job.
The IRO must constantly convince the Buy-Side and Sell-Side that the C-Suite is:
The right team to run the underlying business,
Has the right plan to grow the business over time, and
Has the right C-Suite to execute that plan.
The IRO also has to play the role of enforcer when investor attempt to hijack the company’s narrative.
Utility Executive: The IRO should be able to step in if someone leaves FP&A, Accounting, or Marketing, or god forbid one of these departments falls on hard times.
Proxy Vote Penalty Kill: The ultimate defense revolves around scoring a short-handed goal on the proxy vote penalty kill.
Getting investor to vote your proposals contrary to Proxy Advisor suggestion always represents out of this world performance.
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