Part Two of Two
In our Nov. 4 issue, we gave you a roadmap to learning more about investor relations. In this second installment of "Learning the IR Ropes," we went straight to the IR
department. We found out what makes the IR folks tick, what keeps them up at night and - most importantly - what they need from you, their colleagues in the PR department.
We spoke with two IR executives who see the need for their PR counterparts to not only learn IR vernacular and understand earnings announcements, but also help IR learn a
little PR. PR NEWS editor Peggy Stuntz talks to Vickie Gorton, SVP and director of investor relations for Carreker Corp., a financial software and consulting provider; and Maria
Quillard, senior director of investor relations for Xilinx Inc., a supplier of programmable logic solutions for digital electronic systems. Both agree that there's one area where
PR pros often fall short: the big picture.
Vickie Gorton
PRN: As an IR professional, what issues are keeping you up at night these days?
V.G.: The Sarbanes-Oxley [corporate responsibility act] and the lack of investor confidence in this changing investor environment. It's basically expanding the role of investor
relations, and we're getting into the corporate governance and corporate responsibility areas. It means a lot more financial disclosures.
And we're essentially trying to prove a negative [in this environment]: We're trying to prove we're not a bad company.
PRN: As part of your role on the board of the National Investor Relations Institute, you're working on the Center for Integrated Communications, an area of focus for the
Institute that will work to help integrate IR and PR. How have you and your colleagues at Carreker worked to become more integrated?
V.G.: Carreker has typically been siloed, with PR, marketing communications and IR separated by different reporting structures.
I'm trying to meet as frequently as possible [with PR and marketing]. I'm looking to share responsibilities and keep each other up to speed on things like who are the best
analysts, and when industry conferences are coming up.
PRN: What can PR do to make your job easier and accomplish that long-term goal of integrated communications?
V.G.: I need to work with them to overlay our plans and look at the calendar from a big picture perspective so we see things coming up. For example, we're disseminating
information throughout the quarter. If PR has a big product announcement coming up, you don't want to hype up the investors [if you've just delivered poor or unexpected financial
news]. That's where shareholder lawsuits come in. Marketing and PR want to keep the buzz going, but there are lots of variables to weigh.
Maria Quillard
PRN: What are the biggest issues on your plate right now?
M.Q.: The big issues are disclosure issues. It all started with Reg FD, and now it's being heightened with Sarbanes-Oxley. We're looking at corporate governance and the need
for better disclosure.
In our latest 10Q, we're including voluntary disclosure on options - we're now doing that on a quarterly vs. an annual basis. We're doing a lot more voluntary disclosure.
PRN: You're in favor of integrating PR and IR, but you do see some conflicting issues between the two disciplines. What are they?
M.Q.: I think that PR needs to be more in-tune to more strategic issues instead of the product du jour. IR always wants to put the company in the best light possible, but we're
very straightforward. PR is definitely interested in putting a more positive spin on things. PR will be saying, "This is the great thing we've heard about our product." Meanwhile,
IR's saying, "The financial community doesn't care because that product isn't contributing enough revenue."
PRN: How can PR overcome some of those obstacles between your departments?
M.Q.: They can be better prepared and better in-tune with the financials of the company. They don't need to know them in great detail, but they should understand certain key
things [like earnings announcements and their impact on business] so that they can pass them along to the press.
At Xilinx, we have weekly meetings [with PR], and all of the press releases, everything, funnels through IR.
You have to coordinate fairly well, and I think PR has to have a better sense for the business overall.
Tools of the Trade
Grasping the big picture of your company's business means more than just coordinating with the IR department. Our experts recommend these steps:
- Volunteer to work on IR-related projects like the annual report
- Attend meetings conducted by the CFO or the IR department
- Tap your agency for help
- Take business courses or NIRI educational courses
They also say there are a few simple, everyday solutions to getting beyond a "fear of math" that IR pros say plague many PR folks. "Read The Wall Street Journal, watch CNBC,
read BusinessWeek," Gorton advises. "Get up-to-speed on the vernacular and get the bigger picture, understanding all the issues the IR person is working with." Finally, she says,
remember that IR has a lot to learn from PR as well, and you can serve as a resource, too. "A lot of IR professionals came up through accounting or treasury departments.
Communications is a challenge for them."
(Contacts: Gorton, [email protected]; Quillard, [email protected])