IR Monitor – 21 May 2025

In this week’s newsletter:

•  Activist investors: the last defenders of the retail shareholder. What is good for an activist is often good for other shareholders, argues IR Magazine
• An alternative view from the Wall Street Journal: elite CEOs don’t need earnings guidance; the practice encourages short-term thinking
• NIRI webinar on  demystifying the road to IPO: what every IR professional needs to know
• From a PR point of view, the online AGM just looks like you are trying to hide something: Simon English on the risk in scrapping traditional AGMs
• AI may be getting too clever by half for corporate communication, warns The Times.  The danger is that all communications will end up sounding the same, using certain buzzwords and phrases, making it harder for analysts and investors to interpret
• And finally … just another banger slideshow from SoftBank. The results presentations have become an annual tradition nearly everyone can enjoy, according to the FT

This week’s news

Activist investors: the last defenders of the retail shareholder

Activist investors have shed their old image as aggressive dealmakers and now play a key role in protecting the interests of everyday shareholders, IR Magazine suggests. While big institutions and index funds often sit on the sidelines, activists step up by investing in companies that could use a shake-up. They carefully examine performance, engage with management, and—if necessary—take their case public or even seek board seats to drive change. For retail investors, activists can be valuable allies who keep company leaders accountable and advocate for stronger returns and better governance. In contrast to their trouble-maker image of the past, activists can be seen as the modern champions of shareholders rights.

Elite CEOs don’t need  guidance

The Wall Street Journal reports that some of the world’s top CEOs are breaking with tradition and ditching quarterly earnings guidance, including the world’s largest retailer, Walmart. While this move might make analysts nervous, big, established companies like Walmart can get away with it—unlike smaller players such as Snap, which saw its stock drop over 12% after making a similar announcement. Wall Street usually doesn’t like uncertainty, but history shows that some of the most successful business leaders, like John Malone and Teledyne’s Henry Singleton, ignored short-term market expectations and focused on long-term value.

NIRI webinar on demystifying the road to IPO: what every IR professional needs to know

Your IR Monitor correspondent attended a recent NIRI webinar on “Demystifying the Road to IPO.” In this session, IROs provided candid advice on navigating the intense but exciting process: First, ensure messaging is clear and concise. Help investors help you with a story that they can easily articulate to their investment committees. Second, make sure the models you provide are aligned to the SEC filing and intended post-IPO reporting—this means aligning internally on KPIs and even guidance frameworks early on. Third, take advantage of Test The Waters and analyst sessions to gain candid feedback, and to start building these important relationships. And finally, don’t cut corners. “Optimizing” this transaction is not worth it; invest time & resources to build a strong foundation for public company success.

The online AGM just looks like you are trying to hide something

Some big UK companies want to scrap traditional, in-person AGMs and move everything online, much like how the White House now gives press briefings to “influencers” instead of journalists. While companies argue that AGMs are expensive and poorly attended, moving AGMs online looks like companies have something to hide, regardless of the intention, Simon English argues in Tomorrow’s Business. Online AGMs make it easier for companies to control who gets to ask questions, meaning it’s unlikely you will hear any real scrutiny of boardroom decisions. English hopes that big companies are reminded of their responsibility to all investors, however small , and for now we must hope the government says no to online AGMs.

AI may be getting too clever by half for corporate communication

As AI becomes ubiquitous, its use in corporate communications is on the rise. The Times reports that companies such as Raspberry Pi, Nvidia and CT Automotive are embracing the use of chatbots and generative video features to aid with the reporting of their financial results. By taking advantage of the “tone analysis” tools, both financial journalists and chief executives have been scanning financial reports to ensure that sentiment aligns with the company’s level of confidence. Although not yet ready for exclusive use in company reporting, this marks a shift: senior leadership teams are embracing the use of AI for how their companies and themselves are presented to the outside world, which has knock on effects for share prices, reputation and markets. The flipside risk, of course, is that all communications will end up sounding the same, using certain buzzwords and phrases, making it harder for analysts and investors to interpret.

And finally… just another banger slideshow from SoftBank

SoftBank’s annual results presentation has been released, and it is as unique as ever. The Financial Times have taken a deep dive, reporting that despite faults in grammar and Plasticine models representing uncertainty, numbers do feature. The KPIs report nearly a 28 per cent fall in cash & equivalents, and the FT adds that there has only been one cumulative positive quarter throughout the past 11.  In addition, SoftBank has included OpenAI—the backing of which put SoftBank on track for a possible ratings downgrade by S&P Global—as one of its companies in the pipeline for future listings. This comes only eight days after Sam Altman’s company decided not to convert to a for-profit organisation, so one might argue that SoftBank is overstating the potential here. Despite the debatable figures, the visual quirks and styles show that SoftBank’s characteristic reporting approach remains reliable in the face of uncertainty.