Forum Home Page [see Broadridge note below]

 The Shareholder ForumTM`

Fair Investor Access

This public program was initiated in collaboration with The Conference Board Task Force on Corporate/Investor Engagement and with Thomson Reuters support of communication technologies. The Forum is providing continuing reports of the issues that concern this program's participants, as summarized  in the January 5, 2015 Forum Report of Conclusions.

"Fair Access" Home Page

"Fair Access" Program Reference


Related Projects 2012-2019

For graphed analyses of company and related industry returns, see

Returns on Corporate Capital

See also analyses of

Shareholder Support Rankings



Source: IR Magazine | Inside Investor Relations, July 2, 2012 article and commentary

Inside Investor Relations


A brief history of IR time

2 Jul 2012

How technological developments have shaped the world of investors, analysts and IROs

A time-travelling IRO from just 25 years ago would barely recognize today’s online, networked world of webcasts, tweets, blogs, apps, instant Edgar filings and XBRL tags where immediacy, accessibility and global reach are taken for granted.

Veteran practitioners recall with a chuckle the image of bicycle messengers fanning out across Manhattan to hand-deliver press releases printed on embossed company stationery while the mailroom stamped and stuffed envelopes for the wider world.

In a quarterly release ritual charitably described as ‘arcane’, the most technologically advanced IR departments would reserve the fax machine for the day.

But early fax machines were capable of sending to only one recipient at a time so IROs would have to choose, transmitting to the Dow Wire ahead of Reuters one quarter and reversing the order the next while steeling themselves for a profanity-laden tongue-lashing from the bested editor.

The wire services would then retype the earnings, shooting a headline EPS, followed by revenue and on down the P&L in a slow reveal that could take several minutes.

Meanwhile, the fax would hum and buzz all day as portfolio managers waited to get a glimpse of the results. ‘IR used to be a game of days and weeks,’ observes Bill Haney, global head of IR business at Thomson Reuters. ‘Now it’s a game of minutes.’

Nor would our calendar-hopping IRO recognize today’s market environment, increasingly dominated by exchange-traded funds, dark pools, hedge funds and high-frequency trading (HFT). ‘Previously, people weren’t looking at screens, blogs or CNBC,’ recalls Tiffany IRO Mark Aaron.

‘They had the opportunity to think about the results.’ Aaron readily embraces the advantages of today’s technology but notes that ‘this incredibly fast flow of information’ creates a climate where analysts compete to see who can be first with a comment or a note and investors feel compelled to react to both news and noise.

Cloudy view

Aaron’s observations highlight a great irony: as today’s communications technologies have made company-specific information more widely available and transparent, markets increasingly value liquidity and speed above all, and are becoming arguably less attuned to the increased information flow from firms.

On any given day, more than half the volume of a company’s stock is traded across multiple markets or dark pools in baskets of securities, while options are countertraded in baskets of derivatives.

This frenzy of trading, driven by arcane algorithmic formulas, is increasingly divorced from any information the IRO is sending out. It’s designed to harvest fractions of pennies of profit in thousandths of a second, repeated over and over. Individual company tickers simply become chits, necessary for keeping score.

The wizards who program the gigaflopping supercomputers that drive HFT seem a different species from the green eye-shaded clerks tapping price quotes over telegraph wires 150 years ago. But the evolutionary lineage from ticker tape to HFT is clear: Wall Street’s been ‘plugged in’ for a long, long time.

The Big Bang creation of modern IR can be traced to two events. In 1965 PR Newswire launched the Investors Research Wire, which sent corporate news releases directly to brokerage firms and financial analysts, thus starting us down the path of immediate and ubiquitous information flow from companies to institutional investors.

Then, in 1967, Wall Street experienced the ‘Back Office Crisis’, when major exchanges, drowning in paper, were shut down mid-week so brokers could catch up on processing delays. That crisis opened Wall Street’s eyes and wallets, bringing computers into the trading environment.

The rest has been mere evolution on the twin themes of increasing information flow and increasing efficiency of trading, influencing and being influenced by parallel changes in regulation and market structure.

For example, First Call was launched in 1983 (see timeline, below). In addition to broadcasting news to the Street, the institutional information network also raised the visibility of ‘consensus’ earnings, in particular in the eyes of the business press and regulators.

By the late 1980s earnings teleconferences had become widespread, most open only to institutional investors.

At the same time, this increased visibility of the IR process pulled back the veil on a common practice at the time of talking the numbers down. While perhaps necessary in a world of bicycle messengers and mailrooms, it was unacceptable in the increasingly networked world.

It took 14 years, but in the fall of 2000 the SEC implemented Regulation Fair Disclosure, arguably the single largest change on the IR landscape in a generation.

The big changes

When asked to name the biggest changes in investor relations brought about by technology, IROs mention corporate websites and open teleconferences that have ‘leveled the playing field’ between retail and institutional investors.

‘That’s a huge positive for the market,’ observes Jane McCahon, who chaired NIRI when Reg FD was rolled out by the SEC. McCahon, now IRO at Chicago-based Telephone and Data Systems, also lauds RSS feeds and Google alerts that let investors self-select what information they want to be fed. ‘That’s how disclosure should happen,’ she says.

Teleconferences have also increased the visibility of IR within the C-suite, observes FedEx IRO Mickey Foster. He describes how, prior to the advent of conference calls, on the day of earnings management would present to analysts in New York before Foster hit the road to other cities for face-to-face meetings.

Today, the chairman and those who report directly to him/her all gather in a conference room for the quarterly conference call, with IR front and center orchestrating the entire event. ‘You can engage a lot more people, and it makes for a richer conversation,’ Foster says.

The proliferation of corporate IR websites and the democratization of information have armed investors with an unprecedented level of knowledge before they place that first call to the company. This has upped the ante for IROs, says Chris Taylor, managing director of global IR at Ipreo.

In the past, an introductory conversation between the IRO and an investor or analyst would cover the basics. Now, the buy side and sell side come already educated and expect to talk to an IRO who is connected and can take a deep dive into the strategy and nuances of the business.

What next?

Both Haney and Taylor see an increasing premium being placed on market intelligence to restore some balance of power. No longer willing to settle for obvious ownership data, Haney says IROs are looking for insights into ownership patterns, explicit or implied relationships among hedge funds that ‘move in packs’, investors’ hot button issues and history of activism.

Taylor also says CEOs and CFOs expect the IRO to know enough to ‘put them in front of people they should be in front of, not waste their time.’

In a market where IROs can neither influence nor truly understand what’s driving the majority of volume in their stock, Haney has heard some experienced mega-cap IROs ask themselves for the first time: ‘What does my role look like in the future?’ Perhaps XBRL tagging or crowd-sourced financings will have as large an impact on future IROs as webcasts and HFT have had on today’s. No one knows for sure.

Mobile apps and tablets will become commonplace in IROs’ briefcases and may eventually replace the desktop, Haney predicts. It’s already happening in emerging markets where wireless internet is more ubiquitous and reliable than wired. McCahon sees technology potentially enabling a continuous flow of financial information to the markets.

When business is tough, it would be like ‘letting the air out of the balloon a little at a time,’ she says. Taylor sees a future where technology enables ‘a more efficient collaboration’ between the buy side, sell side and public firms that today engage in serial, two-way conversations.

Haney predicts that IR will become ‘less hand-to-hand combat’ and sees parallels in the path the buy side has traveled over the past two decades. Initially, analysts resisted macro modeling and formula-driven investing, arguing that their labor-intensive research to get to know a company could not be replaced by machines.

Today ‘the quantification of the buy side is complete,’ he argues, as it embraces algorithms and models ‘to inform a largely human process.’

A new, more quantitative IRO will emerge as companies ‘reverse engineer’ buy-side algorithms to predict how their ownership base will change as the company evolves, Haney continues, noting that the transformation is already under way, accelerated by the influx of former sell-side analysts into the IR role.

Broken connection

Tim Quast, founder of ModernIR, describes a ‘great disconnect’ between the technology advances on the IR desktop and in the markets. As IR has been speeding up communication, increasing transparency and broadening its reach to put information in front of investors, the markets are moving ‘away from the authority of rational investment principles to relative value,’ he argues.

He also sees increasing quantification in the IR suite, hoping more than predicting that IR will move beyond ‘obsession with one piece of the pie’, the 15 percent-20 percent of volume attributed to its traditional audience of active investors.

Quast, who advises companies on how market structure affects their stock, urges IROs to adopt a ‘behavioral approach’ that looks at multiple data points to better understand the majority of any individual stock’s daily volume. ‘That’s what institutions are doing,’ he says, and IR will have to adopt a similar approach.

Finally, Aaron warns that tech-obsessed colleagues who measure their success by how quickly they can get information out ‘are missing the point’ of good investor relations. The future of IR will be built on the same fundamentals of building long-term relationships with investors and analysts, he argues. And for that, there is simply no substitute for face-to-face communication.


Tomorrow’s IR site, today

2 Jul 2012

Q4’s Darrell Heaps and Sheryl Joyce look into their crystal ball

Q4 Web Systems envisions that transparency and engagement will be the underlying philosophy of the IR website of the future.

A large part of this philosophy will be based on interacting via social channels with the company and other investors.

Searching tools
A good IR website makes it easy to access content. One way to accomplish this is by using tools to help investors search, sort and organize data. For example, Daimler has a feature that lets users look up press releases by year and category. Other searchable information can include events by topic, month and year, which Adidas does.

Most popular content
Savvy investors are accessing company websites to gather information to make informed investment decisions. They are also increasingly signing up for and sharing ideas and information with other investors on social networks, so they will be interested in seeing what their friends are looking at on a company’s website and on social media channels. One way to help achieve this is to provide a snapshot of the most popular content being sought after, prominently displayed on the IR website.

Discussion section
Online conversations about companies are on the rise. A good way to stay apprised of these conversations is through an amalgamated discussion section. This section would incorporate a mash-up of conversations about your company (as well as your peers) on social networks. It would also track trending themes and sentiment analysis by providing analytics from the social web. This section would help IROs monitor the conversations as well as help mitigate potential rumors from misinformation and respond in a timely manner.

Interactive access
Access to the C-suite and transparency are two top concerns for investors. This section would list all public events available to all investors where they could interact face-to-face with management. For example, investors could sign up for an earnings call and be brought into a virtual meeting room like PGI’s iMeet. The same concept would apply to annual meetings and investor days. Similarly, there would be a private sign-up for institutional investors to book meetings with management.

Investor FAQs
FAQs are a useful way to reduce investor calls. The IR department should regularly add any new questions to this section and think outside the box to come up with other potential inclusions. Potash is an innovator in this area, segmenting questions by category. It also gives investors the option to filter and even the opportunity to suggest a question. Q4 also envisions a ‘real-time’ FAQs feature where investors can submit their questions and the most recent (provided it’s ‘new’) will stay on top so others can see it.

Reporting center
Financial information is a key metric investors use to decide whether they want to buy shares, so it is essential to make it easy to download and analyze this information. For example, Agnico-Eagle – a Q4 client – has a financial and operating database that gives analysts a full set of quarterly financials and fundamentals (delivered through a browser or as Excel downloads), customizable charts and the facility to share content from the model through email and social networks.

Email alerts
Investors today are more discerning and want to receive selected information. Offering segmented email alerts gives investors the opportunity to select the type of information they want. For example, TVI Pacific – another Q4 client – has a very comprehensive ‘Connect with us’ page with integrated RSS feeds so investors can sign up for news releases, events and presentations. This section would also allow investors to choose where they wanted this information sent: to Twitter, Facebook or other social media channels where they are active.

Comprehensive contact information
Companies are making themselves more accessible by providing comprehensive contact information. For example, in addition to direct phone numbers and email addresses for the IR team, companies like Bayer are providing headshots of the IR contacts. Companies will increasingly provide a link to their LinkedIn profile and those of each member of the IR department.

What’s new?
Whether a site visitor is a potential, new or long-term investor, providing links to recent news or events is typically highly sought-after information. One way companies highlight what’s new is by linking to the latest press releases, transcripts and upcoming events, or to the latest updates made on the IR website, like Danske Bank. This section would also use highly visual links to corporate video housed on YouTube or most recent presentations housed on SlideShare.


© Copyright Cross Border Ltd. 1995–2012. All rights reserved.


This Forum program was open, free of charge, to anyone concerned with investor interests in the development of marketplace standards for expanded access to information for securities valuation and shareholder voting decisions. As stated in the posted Conditions of Participation, the purpose of this public Forum's program was to provide decision-makers with access to information and a free exchange of views on the issues presented in the program's Forum Summary. Each participant was expected to make independent use of information obtained through the Forum, subject to the privacy rights of other participants.  It is a Forum rule that participants will not be identified or quoted without their explicit permission.

This Forum program was initiated in 2012 in collaboration with The Conference Board and with Thomson Reuters support of communication technologies to address issues and objectives defined by participants in the 2010 "E-Meetings" program relevant to broad public interests in marketplace practices. The website is being maintained to provide continuing reports of the issues addressed in the program, as summarized in the January 5, 2015 Forum Report of Conclusions.

Inquiries about this Forum program and requests to be included in its distribution list may be addressed to

The information provided to Forum participants is intended for their private reference, and permission has not been granted for the republishing of any copyrighted material. The material presented on this web site is the responsibility of Gary Lutin, as chairman of the Shareholder Forum.

Shareholder Forum™ is a trademark owned by The Shareholder Forum, Inc., for the programs conducted since 1999 to support investor access to decision-making information. It should be noted that we have no responsibility for the services that Broadridge Financial Solutions, Inc., introduced for review in the Forum's 2010 "E-Meetings" program and has since been offering with the “Shareholder Forum” name, and we have asked Broadridge to use a different name that does not suggest our support or endorsement.