We have a guest blog by Danielle Pamela Neben. Danielle is on the Board of Directors at Landsbanki and brings a wealth of knowledge in the banking sector. I met Danielle in one of our Rotary Club meetings and I was impressed at how she has integrated into the Icelandic community (She is Canadian). She has got her head around Icelandic (one of the hardest languages to learn, by far) and also to be a Board Member of Landsbanki after the financial collapse in Iceland. When she reached out to me about a new course she is offering in Reykjavik University about Investor Relations, I invited her to write a blog post about the class. Startup Founders and Entrepreneurs seldom give thought to what goes on in the heads of the investors or in some cases that is all they think about. I think a proactive approach to investor relations is what is needed right from the get-go of building companies. If you are startup founder, you should check out Danielle’s course.
A proactive approach to Investor Relations
(By Danielle Pamela Neben)
“A well-informed and supportive investor base is a key corporate asset.”
There is fierce competition for capital, whether in Iceland or abroad. With Iceland’s proposals to the eventual removal of capital controls, Icelandic companies will have opportunities for expansion and the potential to tap international capital markets for funding.
A proactive approach to Investor Relations is similar to providing superior customer service to attract and retain investors, who are supportive of a company strategy.
Whether a company has institutional or private shareholders, or is looking to raise capital – ongoing, transparent and consistent two-way communication of your company strategy, major policies, results and even negative events are key to building positive relationships. This lays the foundation for future resolution of challenges and conflicts.
Tapping into investor and analyst feedback is a valuable source of information for a Board and Executives. They have insight into a company’s competitors, whether in Iceland or abroad, and successful factors driving the businesses.
Engaging directly with investors between shareholder meetings is becoming increasingly common. An investor engagement strategy should include these principals:
Setting disclosure guidelines
Shareholder targeting and dialogue with large shareholders
Management to represent the company in most interactions, with key Board members addressing executive compensation, corporate governance and any major changes
Driving an efficient IR calendar of meetings: post results, strategy updates, negative news events, major conferences and prior to AGMs for feedback on proposals
Incorporating feedback loops to the Board and Executives
Investor Relations course at Reykjavik University
Join us on 30 April and 3 May 2016 to learn how to develop a proactive approach to Investor Relations. Topics to be covered include:
Introduction to Investor Relations
An overview of capital markets
Interacting with analysts and investors
IR communications and the IR calendar
Roadshows, investor days
Communicating the company story and value proposition
Measuring the value of IR: feedback loop to the Board and Executives
Instructor: Danielle Pamela Neben
Danielle has over 22 years experience in international banking, including three years managing Investor Relations for HSBC during the height of the financial crisis: from highlighting the sub-prime issues; dealing with an activist shareholder (Knight Vinke); up to the successful US$ 20bn rights issue in early 2010. Since mid 2013, she lives in Iceland. She provides consultancy services and is currently a Board Member at Landsbankinn.
Helga Valfells, CEO, Nýsköpunarsjóður
Erna Eiríksdóttir, Head of Investor Relations, Eimskip
We look forward to seeing you there!
This is a great article highlighting how to manage investor relations (which can get ugly!) I thought the strategies outline were very clear and applicable to startup founder. Thanks!