Continuing Cecilia Wilkinson’s Legacy: Empowering the Next Generation of IR and PR Professionals

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If you didn’t know it, the “Wilkinson” in our company’s name is for Cecilia Wilkinson, a founding partner whose lasting contributions have shaped both our firm and our industry.

To celebrate her legacy of leadership and mentorship, we established the Cecilia Wilkinson Memorial Scholarship in 2008, an annual award given to a first-year graduate student at USC Annenberg School for Communication and Journalism. But more than just financial aid, it is a tribute to Cecilia’s commitment to excellence in the field.

Veronica Ramirez, who embodies Cecilia’s passion for our field and commitment to the industry, is this year’s recipient. Since 2008, the scholarship has been providing financial support, but it also celebrates ambition and the power of great communication. Additionally, recipients have the opportunity to interview for an internship with PondelWilkinson, gaining hands-on experience in investor relations and strategic public relations.

Cecilia was an accomplished communicator, a strategic leader and a mentor who shaped countless lives through her expertise and dedication. Her impact extended to USC Annenberg and the USC General Alumni Association. The scholarship was established to honor Cecilia’s legacy following her passing in 2006 from pancreatic cancer.

One of our favorite traditions is meeting the scholarship recipients each spring and inviting them to a weekly PondelWilkinson staff meeting. We hear what brought them to USC, what excites them about investor relations and strategic PR, and we learn about their aspirations. Consistently, we walk away completely inspired by these students’ passion and drive. They are the professionals who will shape the future of our industry.

Cecilia understood the transformative power of communications—how it shapes change and reputation, tells compelling stories and leaves lasting impacts. At PondelWilkinson, we are honored to carry forward Cecilia’s legacy of mentorship, support and excellence, and we eagerly anticipate the future leaders who will continue her vision.

While I did not have the privilege of knowing Cecilia, her influence is still felt deeply throughout our organization, and her dedication to shaping the next generation of strategic public relations and investor relations professionals continues to inspire us all.

Natalie Mu, nmu@pondel.com

How to Measure Investor Relations Success

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In our ongoing “back-to-basics” blog series defining PR and IR, this article helps explain how to best measure investor relations efforts.

In a previous post, we explored the fundamentals of investor relations, highlighting its role in helping publicly traded companies communicate with Wall Street, shareholders and the broader financial community.

The next step is understanding how to evaluate an IR program’s effectiveness, a task that is quite nuanced and requires a blend of qualitative and quantitative metrics. While stock performance provides a tangible benchmark, valuation is more tied to a company’s financial results than IR.  Factors such as shareholder sentiment, media perception and the effectiveness of investor communications add important context.

A few metrics to follow:

  • Quarterly conference call participation: Track whether investor participation in earnings calls is increasing over time. Are more investors joining now than last year? Monitoring participation helps assess if the calls and messaging are reaching the right audience.
  • Institutional investor growth: Evaluate changes in the institutional investor base. Have quality, actively managed investment firms shown interest? Seek to maintain an appropriate ratio of institutional to individual investors.
  • Trading volume trends: While valuation depends largely on company performance, an increase in trading volume can indicate that IR efforts are helping to drive investor interest.
  • IR website traffic: Measure the number of visitors to the investor relations website. An optimized, well-structured website that also meets best-in-class standards can help generate increased awareness, as well as educate investors.
  • Inbound investor inquiries: Track call and email volume, and also assess sentiment. Are investors engaged or raising concerns? Understanding context helps refine an IR strategy.
  • Long-term sentiment tracking: Use perception audits to gauge shifts in investor and analyst sentiment. Comparing results before and after strategic messaging adjustments provides insights into IR effectiveness.

Measuring investor relations success requires a holistic approach that blends quantitative data with qualitative insights. By consistently evaluating these metrics, companies can refine their communication strategies, strengthen investor confidence and ultimately create long-term shareholder value.

George Medici, gmedici@pondel.com

In-Person Investor Days are More Important Than Ever

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Tips for Building Relationships and Enhancing Valuations

Especially with so many non-deal roadshows being virtual these days, offering little opportunity for investors to shake hands, look management in their eyes and see their body language, in-person investor days have taken on a new importance.

If you have conducted, helped plan, or spoken at an investor day, you already know that to be successful it takes strict attention to details (and there are lots of them), along with solid, compelling messaging and a receptive audience. But the rewards can be ample, ranging from strengthened investor and analyst relationships to enhanced valuation.

Having arranged and participated in dozens of investor days over the years, my colleagues and I have learned a lot to ensure success and meet issuers’ objectives. Following some points to consider:

  • Overwhelmingly, mid-town Manhattan is the preferred location to drive the largest attendance and for audience convenience. Many analysts and investors already reside there, and those who don’t, can always find other business to do while in town. A caveat: If your business has an impressive facility worth showcasing, consider hosting your event there, provided it’s easily accessible and attendee expectations are managed appropriately. Alternatively, you can leverage 3D video/VR during a New York-based event, where attendees can undergo a fully immersive experience of your facility.
  • Lock in your venue early – even a year ahead if possible – to ensure you get the location of your choice. Nasdaq and the New York Stock Exchange, both preferred venues for many reasons, have great facilities and top-notch meeting coordinators, but they book up quickly, especially if you want to combine the event with a bell ringing ceremony. Hotels or dedicated meeting venues also can be good choices for hosting an investor day, but they are generally quite expensive and also book up early. Once the venue is locked in, the majority of the actual planning work generally occurs in the six months leading up to the event.
  • The messaging is the star of the show. You can give attendees goodies, a beautiful room and, of course, great food, but if your messages don’t resonate with the audience, the event will likely be a bust. You’ll need to spend a good deal of time thinking about what you want to say and how you want to say it. And make sure your slides are provocative and easy to read and digest. You’ll also need to spend time prepping management for the Q&A. Presentation training to ensure proper delivery also helps.
  • Utilize executives who can effectively demonstrate the company’s deep bench and exceptional knowledge. Consider mixing up the format to include formal addresses, along with fireside chats, outside guest speakers (customers, academia, or other industry experts), and video to help break up the day and provide additional insight into your business and industry.
  • Build Q&A time throughout the agenda, not just at the end of the day. Generally, being available for Q&A after every few presentations are made will help the day run smoothly and will allow for more attention to the topics just discussed. The end of the day can be reserved for overview and any unanswered questions.
  • Keep your event to a half-day. Attention spans and investors’ time are limited. Lunch leading up to the event, or a cocktail reception at the end is a great way to network and spend a bit more personal time with attendees.
  • Plan thoroughly. In addition to fees related to the venue, if your team is not New York-based you’ll need to arrange flights and accommodations, not to mention meals and other incidentals. Using an outside consultant (hopefully with the experience and credentials as PondelWilkinson), to plan and coordinate the entire event, including the messaging, eliminates lots of headaches.
  • Last but not least, make sure to follow up with attendees. It is essential to garner feedback on the event, as well as the messaging. If something did not land quite right, you can adjust your messaging for the next time.

Virtual NDRs may have gained popularity because of their convenience and flexibility, but there’s an undeniable value to meeting in person that only a formal investor day can provide. In-person events foster deeper relationships and trust between executives and investors, create more impactful interactions and valuable networking opportunities, as well as provide an opportunity to let analysts and investors know there is a great team behind the CEO and CFO.  

Laurie Berman, lberman@pondel.com

Six Questions for Microcap Companies Contemplating Public Relations

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Corporate America is Telling the Truth — Tips to Assure Reg FD Compliance

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With so many voices billowing false narratives and confusion these days, it is sometimes challenging to discern fact from fiction. But amidst all the dubious rhetoric, it’s good to know that sanity still prevails in the world of public companies.

Corporate America is standing out as a beacon of clarity and truth. And this isn’t by accident. It is the result of carefully crafted regulations designed to protect investors and ensure the integrity of the market.

As a refresher, the Securities Act of 1933, affectionately known as the “truth in securities” law, mandates that buyers of securities receive complete, accurate and truthful information before they invest. 

The Securities Exchange Act of 1934, referred to as the “34 Act,” created the Securities and Exchange Commission (SEC) as a body to regulate trading of securities after they have been distributed.

And in the year 2000, the ‘33 and ‘34 Acts were further strengthened by Regulation Fair Disclosure (Reg FD), with the intent of preventing public companies from selectively disclosing important information to certain shareholders and market professionals. Rather, it created a level playing field for all investors by ensuring that material information is disclosed to everyone simultaneously.

As the 25-year mark approaches since Reg FD was enacted, and as the IPO market warms up for the new year, following are a few reminders to help issuers assure compliance:

  • Maintain a formal disclosure policy. Outline procedures for publicly disclosing information, such as through press releases and social media. Press releases are by far the preferred disclosure medium, followed by social media and the company’s website. However, if a company principally uses the latter two vehicles to disclose information vs. press releases, it must ensure that both are widely recognized as the issuer’s primary distribution channels.
  • Train employees. For companies in the process of going public, provide formal Reg FD training – in person or by Zoom – for senior staff and for those who may be privy to sensitive information, and periodically conduct refresher training sessions. Specify who is authorized to communicate with investors and analysts.
  • Anticipate disclosures. Plan ahead if possible, and when doing so, be certain to remind the inner executive circle of the mandate for confidentiality.
  • Review executive presentations. Have an IR advisor or in-house counsel review presentations to be certain they do not contain material non-public information. 
  • Establish black-out periods for trading. Black-out periods can help prevent inadvertent insider trading and Reg FD violations. Some companies limit executives to only trading on a 10b5-1 plan to avoid violations.

Through Reg FD and other SEC mandates, corporations and their leaders are held to stringently high rhetorical standards – and they are doing a good job of adhering to them. Continued compliance requires awareness, regular refreshment, and constant diligent attention.

Roger Pondel, rpondel@pondel.com

Editorial Note: PondelWilkinson has been approved by the California Bar Association to provide Reg FD training to SEC lawyers for MCLE credit, and regularly provides such training to executives of pre-public and publicly traded companies.

What Do Investor Relations Firms Do?

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As part of our ongoing “back-to-basics” series on public relations and investor relations (IR), this blog outlines what an IR firm does and how choosing the right one can make a difference.

Investor relations firms primarily assist publicly traded companies in effectively communicating their financial performance and strategic goals to the investment community. Acting as both strategic advisors and tactical operators, IR firms ensure that messaging is clear, compelling and delivered to the appropriate audiences.

Here’s a breakdown of some of an IR firm’s key responsibilities:

Financial reporting and analysis: Preparing quarterly and annual financial materials, such as earnings press releases, conference call scripts, Q&A prep documents and investor presentations. An IR firm’s ability to analyze and interpret financial results ensures that investors fully understand a company’s performance within the broader industry and macroeconomic environment.

Investor and sell-side analyst targeting: Identifying investors and stock analysts whose mandates align with the company’s financial and industry profile. An IR firm organizes non-deal roadshows to connect issuers with potential investors, while recommending relevant conferences for company participation, and helping to foster long-term investor relationships.

Perception audits and key messaging: Conducting qualitative surveys of current and potential investors and other relevant stakeholders. The findings from these studies are crucial for refining key messages that align with investor expectations.

IPOs and follow-on offerings: Guiding companies through the entire initial public offering (IPO) process in conjunction with a company’s investment banking, legal and accounting teams. Activities include strategic counsel, crafting messaging, development of the presentation deck and press materials, and regulatory compliance training, such as with Regulation FD. An IR firm also will assist with secondary and follow-on offerings in much the same way as with an IPO.

Corporate governance: Ensuring that companies follow regulatory requirements and best practices, including environmental, social and governance (ESG) standards, Securities and Exchange Commission (SEC) mandates, and rules and regulations governing IR websites. Maintaining transparency is essential for fostering trust and credibility with investors.

Crisis management: Managing communications with key stakeholders, including investors and media, to mitigate reputational damage and minimize the impact on the company’s stock price during a tumultuous event. Effective crisis management is crucial for maintaining stakeholder confidence and ensuring a swift recovery.

Investor/capital market days: Assisting companies in planning and executing investor or capital market days to directly engage in a meaningful way with investors and analysts. These events showcase the company’s strategic vision, progress, financial performance and growth prospects, strengthening relationships and investor loyalty.

Market intelligence: Provide companies with valuable insights into current investor activity and sentiment, market trends and peer activities, to help management refine key messaging and optimize investor relations strategies.

IR firms are essential partners to public companies. They offer both strategic guidance and tactical support. They play a crucial role in enhancing a company’s reputation and credibility, helping build trust with investors, which can lead to long-term success and enhanced shareholder value.

George Medici, gmedici@pondel.com

Respecting the American Dream

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As someone who came to this country with my family in the early 1980s, I’ve personally witnessed and experienced the opportunities that America offers. For most immigrant families, the United States was, and still is, considered the land of freedom and opportunity. A representation of hope and dreams to pursue better lives.

Four decades and numerous jobs later—from scooping ice cream after high school to waitressing through college—my professional aspirations embodied the dream that anyone, no matter their birthplace or background, can achieve success, and that upward mobility is within reach for all.

Today, I am a partner at one of the nation’s most highly regarded investor relations and strategic public relations firms, representing quality companies, large and small, in multi sectors throughout the globe.

Corporations, at their core, are made up of individuals. Regardless of position or job role, the vast majority of those individuals are people with values, ethics and the potential for positive impact, working together to achieve the common goal of growth, which ultimately benefits the entire organization.

However, achieving this growth isn’t just about the bottom line—it’s also about how we get there. It is crucial to remember that the principles of values and ethics, and the belief that we all have the potential to make a positive impact, can guide all of us toward a more constructive and unified future.

I take great professional and personal pride in working, alongside my colleagues, for a firm that advises executives in matters pertaining to communications with factual integrity. Honesty is not just a policy, but the foundation of trust. Investors, journalists and employees at all levels, and certainly including our society at large, depend on clear, accurate and transparent information to make informed decisions. Misleading and divisive rhetoric only undermines trust and stalls progress. When we prioritize forthright openness, however, we build credibility and foster a culture of respect and understanding.

By advocating for transparency and accountability within corporate practices, we challenge the notion of some, who believe that corporations are inherently symbols of self-serving greed, and instead, we seek to promote a different view, one where corporations can be agents for positive change and camaraderie.

With Labor Day celebrations now behind us, we recognize the many contributions workers have made to America’s strength, prosperity and well-being. We also embrace corporate achievement and the symbiotic relationship between production-line workers and those in the executive suite.

Together, we can foster more pathways and create new opportunities for people, regardless of origin, to achieve their own American dreams.

Judy Lin, jlin@pondel.com

What is Investor Relations? 

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As part of our “back-to-basics” blog series on the basic tenants of our business, we’re going to dedicate this post to investor relations.  

It is important to note that the number of investor relations firms, even in major financial markets, such as New York, Los Angeles, Chicago and San Francisco, is relatively small. That’s probably why when we’re at events or gatherings outside of our industry, we’re often asked, “What exactly is investor relations?” 

Let’s keep it simple: Investor relations, or IR for short, is a communications specialty that focuses on helping publicly traded companies get their stories out to Wall Street, including shareholders, potential investors and the broader financial community. Another term sometimes used to describe investor relations is financial public relations.

Public companies come in all sizes, usually determined by market capitalization, which is a company’s total stock value in the public marketplace on any given day. Stocks can be traded in the U.S. ­on Nasdaq, the New York Stock Exchange (NYSE), the OTC Markets, or on foreign exchanges such as the Toronto Stock Exchange (TSX), London Stock Exchange (LSE) and Frankfurt Stock Exchange (FRA), among many others. 

While public companies are highly diverse in what they do, all of them are regulated by governing agencies, depending on where their stock is traded. In the U.S., for example, the main governing body is the Securities and Exchange Commission (SEC), which requires, among other things, that all public companies follow a set of rules and regulations that ensure free and fair disclosure to everyone.

Compliance with these SEC rules is complex for those who are not in the know. Most public companies rely on investor relations professionals, whether in-house or externally, in addition to SEC attorneys, to assure compliance and language that is understandable. The main job of the IR professional is to help the public company communicate clearly and transparently, and in keeping with the law.

Investor relations encompasses many facets, such as disseminating financial information via traditional and social media; responding to investor inquiries; identifying prospective investors and research opportunities; organizing informational and required annual meetings; preparing investor presentations; and more.

Bottom line, the investor relations function is to manage the communications between a public company and investors, while at the same time being cognizant of other audiences – including employees, customers and suppliers – that may be recipients of the information.

The ultimate goal of IR is to deliver a cohesive and compelling message that resonates with investors, ultimately to help build shareholder value that is consistent with a company’s performance, progress, prospects and peers.

George Medici, gmedici@pondel.com

A Question for ChatGPT: Is AI Transforming Financial Communications and Threatening Jobs?

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The post below was written completely by AI (without any edits from yours truly). I prompted ChatGPT to write a blog about how AI can be used by investor relations professionals for competitive analysis, investor targeting, website content creation and more. I also asked it to discuss whether AI is taking away jobs, which is a question I hear often from industry colleagues.

So, without further ado, here’s what AI had to say. It’s actually pretty good, much to my surprise.

In the ever-evolving landscape of finance, technology continues to redefine traditional practices. One such area undergoing a significant transformation is investor relations (IR), where artificial intelligence (AI) is playing an increasingly vital role. From competitive analysis to targeting investors and crafting compelling content for IR websites, AI is revolutionizing how companies engage with stakeholders. However, amidst this advancement, the question arises: Will AI make investor relations professionals obsolete?

Competitive Analysis:

In the fiercely competitive world of finance, staying ahead of the curve is paramount. AI-powered tools offer unparalleled capabilities in analyzing vast amounts of data, enabling companies to gain deep insights into market trends, competitor performance, and investor sentiment. Natural language processing (NLP) algorithms can sift through news articles, social media chatter, and financial reports to provide real-time updates on industry developments, allowing IR professionals to make data-driven decisions swiftly.

Targeting Investors:

Identifying and attracting the right investors is a crucial aspect of investor relations. AI facilitates precision targeting by leveraging predictive analytics to identify potential investors who align with a company’s values, goals, and risk profile. By analyzing past investment patterns and market behavior, AI algorithms can predict investor preferences and tailor communication strategies accordingly. This targeted approach not only increases investor engagement but also enhances the efficiency of capital allocation.

Content Creation:

Crafting compelling content for investor relations websites and communication materials requires a deep understanding of financial data and regulatory requirements. AI-powered writing assistants equipped with natural language generation (NLG) capabilities can generate insightful reports, press releases, and shareholder communications autonomously. These AI-driven platforms can analyze complex financial data, interpret regulatory guidelines, and produce coherent narratives in a fraction of the time it would take a human writer.

The Future of Investor Relations Professionals:

While AI undoubtedly streamlines many aspects of investor relations, it’s unlikely to render human professionals obsolete. Instead, AI serves as a powerful tool to augment their capabilities, allowing them to focus on high-level strategic initiatives. Investor relations professionals bring invaluable expertise in building relationships, interpreting nuanced market dynamics, and providing personalized guidance to investors.

Moreover, the human touch remains indispensable in navigating complex ethical and regulatory challenges, especially in an era where transparency and accountability are paramount. While AI can crunch numbers and generate reports, it’s the human judgment and empathy that foster trust and credibility in investor communications.

In conclusion, the integration of AI in investor relations represents a significant paradigm shift in financial communication. By harnessing the power of AI, companies can gain a competitive edge in understanding market trends, targeting investors effectively, and crafting compelling narratives. However, rather than displacing investor relations professionals, AI complements their skills, enabling them to adapt and thrive in an increasingly digitized landscape. The future of investor relations lies in the synergy between human expertise and technological innovation, where AI empowers professionals to unlock new levels of efficiency and effectiveness.

Back to me, Laurie, a real person. The AI writing was solid, the messages were cogent, and we concur with the conclusions. Humans still bring invaluable expertise in interpreting data generated by AI, providing counsel to management teams and boards, and building meaningful, long-lasting relationships. So no worries.

Laurie Berman, lberman@pondel.com