The Investor Relations (IR) Team
IR needs to be embedded well in the organisation's culture. This entails that the Executive Board recognises that IR is important and allocates time and resources to the IR programme and its execution. It also requires some vulnerability on the side of the Executive Board: the willingness to listen to criticism from investors and the ability to address these issues and if so required, to dare to change.
The IR department and/ or officer
IR (a department or person, the Investor Relations Officer or IRO) generally reports to the Chief Financial Officer (CFO). IROs will usually also have access to the Chief Executive Officer (CEO) and Chairman or President of the corporation to be able to communicate on:
- the company's financial strategy;
- the broader strategic direction of the corporation;
- a well-founded positioning of the company.
The IRO will also work closely with the legal counsel on legal and regulatory matters that affect shareholders, such as:
- legal liability claims and the consequential impact on the company's share price;
- crisis management;
- corporate downsizing;
- changes in management or internal structure;
- product liability issues;
- industrial disasters.