IR Monitor – 29 October 2025

In this week’s newsletter:

• Without government economic reports, investors have had to look elsewhere for guidance Ordinary corporate earnings reports have assumed a new importance
• UK said by Bloomberg to weigh shorter IPO timelines to boost listings: the FCA is considering plans to change the process for companies to list
• Does the end of ‘benchmark’ proxy policies actually change anything?  The change arguably formalises an existing trend toward customisation vs introducing anything new
• The Times: weak consumer confidence blamed for profit warnings
• Elon Musk really deserves that $1tn bonus package Lex column (FT): “investors should be prepared to offer a king’s ransom to turn Musk’s fancies into profitable reality”
• And finally … the Investor Relations platform in the Middle East has been evolving quickly. FTI’s correspondent in the region writes from Muscat

This week’s news

Strong earnings reassure jittery, data-deprived investors – The WSJ

Corporate earning reports have assumed a new significance on Wall Street, as the US economy faces headwinds amid the ongoing government shutdown. The predictable flow of key economic data, used to inform the decisions of policymakers & investors, has been restricted by the shutdown. In its place, The WSJ highlights the “outsize attention” corporate earnings are now receiving. In the absence of updated fundamental macroeconomic indicators, including labour market, inflation and consumer expenditure data, investors have been left with little choice but to look elsewhere across the economy for a temperature check.  Strong quarterly reports across the S&P 500 are helping assuage concerns around the condition of the US economy. However, rising trade tensions with China are once again weighing on investor sentiment, while uncertainty in the credit market deepens broader unease. The article also identifies the sudden bankruptcy of First Brands, as a catalyst for the recent decline in bank stocks. 

UK said to weigh shorter IPO timelines to boost listings – BBG

Barriers to listing in the UK market have plagued investor confidence but plans to shorten the timeline to IPO could help London’s flailing new issuance market. Bloomberg reports that the Financial Conduct Authority (FCA) is, once more, evaluating the current rules facing companies when they consider going public. For firms to list in the UK there is a two-step announcement process. The purpose of requiring two announcements confirming an intention to float is to provide un-connected analysts a window of opportunity to write their research reports on the company – yet companies warn that this time lag exposes them to “stock market volatility” and has not had the desired effect of increasing research coverage. This announcement from the FCA is an acknowledgement of a problem, requiring intervention from the regulatory authority, and hopes to kick start a market once the epicentre for companies with aspirations to float.

Does the end of ‘benchmark’ proxy policies actually change anything?

Changes to ‘benchmark’ proxy policies have formalised a process already under way, argues the Financial Times, far from the ‘victory story’ its proponents are claiming. A lead proxy adviser, Glass Lewis, recently announced changes to the way it issues recommendations to its clients. Instead of offering standardised advice to institutional investors, a bespoke “customised” voting framework will be agreed to reflect their investment priorities. However, this is not a new phenomenon within the advisory market. Despite commentators suggesting that this is a win for CEOs, by reducing the visible power of proxy advisers, it is merely a continuation of a policy direction that already exists. The FT highlights that 80 per cent of Glass Lewis’s clients have already opted for customisation of advice.. So this ‘end of benchmarking’ can be considered a symbolic shift rather than a reform likely to enact a seismic change in voting behaviour. 

Weak consumer confidence blamed for profit warnings – The Times

The Times highlights that public companies in the UK this quarter have reported the highest level of profit warnings in three years, according to figures from EY. The accounting firm reported 64 profit warnings in the third quarter, with 20% citing cautious household spending as the key reason & 47% citing policy uncertainty and geopolitical instability as fundamental factors. Jo Robinson, partner at EY-Parthenon, commented that the data displayed that the anxiety once confined to boardrooms has now reached households. Construction remains the worst hit industry, accounting for 3,934 insolvencies in the year to August, ahead of the wholesale and retail industry with 3,710.  Overall, company failures in England and Wales rose 2% Y-O-Y in September, although company administrations, typically enacted by larger organisations, fell 17% to 124. Robinson observed that in the run-up to the Autumn budget firms are still reshaping operations to deal with volatile markets, supply chain challenges and emerging risks such as cyberattacks. Christian Mole, partner at EY-Parthenon, added that many businesses are “struggling to absorb” the increased costs associated with the increase in employers’ national insurance contributions. He also noted that customers are becoming more discerning, with “companies from across consumer-facing sectors reporting more selective spending, delayed purchases and trading down to lower-cost options.”

Elon Musk really deserves that $1tn bonus package – Financial Times

For an executive’s renumeration to be determined excessive, Lex argues that one needs move away from fixating on the headline figure, and instead work out, precisely, how hard that figure is to attain. Elon Musk is a case in point. Despite Tesla falling short of revenue expectations in the third quarter and their shares’ relative underperformance against Ford and General Motors this year, Musk could, at least in theory, secure a $1 trillion payout. The reason for this lies in the deals structure: the award, paid in shares over 10 years, is conditional on reaching a series of near-impossible targets that, if achieved, would deliver Tesla far more value than they cost. To receive the full bonus, Musk must lift Tesla’s EBITDA to $400 billion, with the first payout coming at $50 billion – analysts expect a $16 billion EBITDA in 2026. Other targets rely on AI-powered droids, autonomous vehicles, and robotaxis, with one milestone requiring 10 million subscriptions. Barclays believe Tesla currently have 500,000 subscriptions. Musk must also provide a succession plan for a new CEO. Undoubtedly, the headline figure in the case of Tesla is outrageously large, but so is the company’s $1.4tn valuation. Accordingly, as the carmaker’s business falters, investors should be willing to offer a ransom should Musk turn these dreams into a profitable reality. 

And finally … the IR platform in the Middle East has been evolving quickly.

IR in the Middle East has shifted away from a ‘results day’ attitude towards a discourse of year round visibility, with a growing emphasis on clear communication. This was evident at the 2025 Middle East Investor Relations Association (MEIRA) Conference in Muscat, which had a focus on regional co-ordination and market structure. FTI’s Talal Almoallem discusses the three sessions that stood out. The first was the Gulf Co-operation Council Exchange CEOs Plenary which emphasised the role of exchanges as policy partners focused on planned visibility. The second was The role of IR in attracting Sovereign Wealth Funds which highlighted that each fund has a distinct role, from allocator, to developer, to strategic investor and that issuers must tailor their messages accordingly. Finally, a discussion at the Debt Capital Markets event gained attention. The central theme focused on how investors now expect an ongoing dialogue and not just a one-week engagement. Overall, MEIRA has become more outward looking, with exchanges, issuers and investors all aligning around steady engagement as the new norm for attracting capital.