IR Monitor – 23 April 2025

In this week’s newsletter:

• Investor Relations Officers gathered in New York to discuss the changing face of investor communications: eight takeaways from the IR Think Tank 2025
• How will Trump’s tariffs affect US earnings season? asks CityAM. A prisoner’s dilemma
• Elevating Investor Relations:   the case for IR as a C-Suite role is made by Bloomberg
• Investing in AI for IR: a NIRI webinar explores how to evaluate, select, and succeed
• Shares Magazine on why share buybacks aren’t the be-all and end-all
• And finally… how LinkedIn self-promotion became your boss’s favourite waste of time. The platform has become a hive of humble-bragging influencers 

This week’s news

The changing face of investor communications – IR Magazine

Last month, over 100 IR professionals attended the IR Think Tank in New York, hosted by BOA and IR Impact. Amid the ongoing policy changes under the new US administration, there were eight key takeaways from the event. First, don’t own the macro – focusing on what you can control in external communications is key, and should be included in results announcements. Now more than ever, being open with your investor base especially in times of uncertainty retains credibility and enables fluid communication. Additionally, look for other opportunities to get involved beyond quarterly results, such as company initiatives or investor content – in doing so, the role of IR gains more visibility within the organisation. Make sure to go the extra mile by considering what roles IR can do without management to reach audiences who may be interested. Make sure that you supply your covering analysts with everything they need to tell your equity story. Next, don’t undermine the impact of customised presentations for individual investors – IR teams should be able to offer targeted digital content much like marketing teams can. Similarly, with AI research tools such as Google NotebookLM, users can create podcast briefings by adding source documents such as competitor updates, perfect for the commute into the office. Lastly, encourage your team to find their AI passion and get over any apprehension with AI tools, which can produce very innovative solutions. 

How will Trump’s tariffs affect US earnings season? asks CityAM  

City AM hopes that Q1 results should not have been heavily impacted by the tariffs given that most companies’ reporting period would have already ended. However, analysts and investors will be scrutinising earnings statements more than usual, for any sign of a tariff impact on earnings. Analysts are expecting lower earnings growth – according to Bloomberg Intelligence, the S&P 500 for this year now stands at 9.4%, lower than the initial 12.5% in January. It is difficult for companies to decide if adjustments should be made to longer-term earnings guidance. Some may initially hold off due to ongoing volatility from Washington. Secondly, there is potential for other countries to agree trade deals with the US, meaning that progress could be made fairly quickly, especially given most of Trump’s issues are non-economic, such as defence spending. Finally, the US administration is facing increasing pressure to row back on tariffs from Republican politicians. Companies may instead look to take short-term action, such as temporary pauses on advertising spend. Nevertheless, most are seemingly hesitant to make any negative comments out of caution for risk of aggravating the Administration. The dilemma they face is whether to make the first move, or wait for others and risk playing second fiddle. 

The case for IR as a C-Suite role

Bloomberg explains that, over the decades, the role of the investor relations officer has evolved – pre-1970, this function used to be handled by PR or communications professionals as an additional workstream. However, when the bull market began in the early 1980s, at which point a lot of firms were fundamentally undervalued, people began to realise just how important shareholder relations are. Today, most IRO professionals hold VP roles and could one day become Chief Investor Relations Officers. Over the 70s and 80s, the roles of CFO, COO, CTO, CHRO and more emerged as businesses responded to changing financial, operational, social and technology demands, designating a strategic thinker to drive competitive advantage over peers. With the role of IROs more important than ever before, it might be time for the role to become a full C-suite position. 

Investing in AI for IR – a NIRI webinar

During the NIRI webinar session, panelists offered tips for success in using AI for IR. When evaluating solutions, two important things IR teams should look at are the source material that provides the platform’s basis of knowledge, and accuracy of its outputs – for the latter, take advantage of a trial period to run test cases thoroughly. When selecting a solution, it’s important to remember that because of the expansive scope of IR teams, there may not be one tool to cover all your needs – possibly best to consider best-in-class solutions that address specific needs. And finally, a key part of success is proving internally the return on investment. While difficult to quantify, you can offer qualitative information such as by describing how your IR programme has changed compared to before adopting AI. This may include improving ability to advise the management team, building greater trust with investors through more direct engagements, and preparing the company for the adoption of quantum computing by investors and others.

Why share buybacks aren’t the be-all and end-all – Shares Magazine

Shares Magazine estimates that a third of daily RNS announcements constitute a ‘transaction in own shares’, with the constant stream of notifications characterising the current trend of companies embarking on share buybacks. Amid market turbulence, the longevity of this mass buying back of shares activity remains uncertain. Momentum appears to be sustained with Tesco announcing on 10th April a £1.45bn buyback alongside its Full Year Results in response to the tariff-related selling. Buybacks are a smart, tax-efficient method of raising shareholder returns by reducing the number of shares in issue. With companies fixated on increasing shareholder value, buying back shares is a sure-fire way to enable shares to receive more in earnings and dividends and become more valuable as a result. According to AJ Bell investment director Russ Mould, £29bn worth of share purchases were announced by FTSE 100 companies in the first three months of this year. Buybacks are not limited to large corporations – even small-cap companies with limited surplus cash are buying their own shares, either because they think they are undervalued or as a sign they are confident about the outlook. On the other hand, investment conglomerate Berkshire Hathaway, which sits on a huge cash pile, has opted under Warren Buffett not to buy back shares instead concentrating surplus cash into the business to grow margins, grow markets, improve existing products or come up with new ones, suggesting that share buybacks may not be the be-all and end-all at least in the eyes of the world’s most famous investor.

And finally… how LinkedIn self-promotion became your boss’s favourite waste of time

LinkedIn has increasingly become a platform that appears to welcome bragging rights and influencers celebrating their own achievements and administering pearls of wisdom via blatantly fabricated anecdotes. Whilst LI has its uses, particularly for recruitment and marketing industries, critics argue the platform has been taken too far, unnecessarily encroaching further into the boardroom. There is a further risk some executives prioritise promoting their personal brand at the expense of their day jobs. The Telegraph suggests that even the dedicated users of LinkedIn acknowledge that the social media site has introduced a new genre of ego-driven corporate influencers, instead urging bosses to strike a balance and re-prioritise their business.