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 removal of capital controls, Icelandic companies will have opportunities for expansion and the potential to tap international 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:

• Vision of Investor Relations
• Key management who will represent the company in most interactions, with specific Board members addressing executive compensation, corporate governance and any major changes
• Shareholder targeting
• Clear disclosure guidelines 
• Driving an efficient Investor Relations calendar
• Incorporate feedback loops to the Board and Executives