Investor Relations Career Profile (2024)

A dynamic role combining finance, communication, and marketing

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Investor Relations Career Overview

Investor relations (IR) combines finance, communication, and marketing to effectively control the flow of information between a public company, its investors, and the company’s financial community rather than its business customers or the general public. The IR function helps release information, handle inquiries and meetings, and provide management and crisis management feedback.

Investor Relations Career Profile (1)

Communication is also a two-way street; the IR department is responsible for forwarding significant company stakeholders’ input to management. During times of crisis (financial or otherwise), the IR department will advise management to preserve the company’s relationship with its investors and mitigate any damage to share prices.

Working in Investor Relations

Organizationally usually part of the public relations department, IR acts as a portal through which investors and company executives communicate. Investors, analysts, and anyone else with a request or a demand for information from a company are usually funneled to the IR department.

IR also acts as a translator for the language that Wall Street speaks. IR works to relay what the investor community may see as assets and flaws, what they want to be changed, what they don’t understand, and what will drive the value of shares based on current and predicted investor demands.

In 2002, the Sarbanes-Oxley Act was passed, a regulation that drastically increased how much and how often publicly traded companies were required to report financial and trading information. The Act has made the role a robust and efficient IR plays in today’s corporate environment an absolute necessity.

A Typical Day in Investor Relations

Your day starts by analyzing a mix of internally-sourced data and industry trends found by third-party analysts as background research for an upcoming presentation. While you explore the data, you are thinking about the best way to visualize the data so that critical messages are communicated most appropriately.

Next is a meeting with the finance team responsible for creating financial models for your company’s share price. The objective is to create a story from the numbers and turn the data into information that can be populated in the corporate investor relations presentation.

You attend a lunch being hosted for key shareholders of your company. The CEO and the CFO are presenting to this critical stakeholder group, and you have previously spent time writing their speaking notes. Your role is to support the CEO and CFO and to respond to questions among the people in attendance.

You have some time in the afternoon to start the presentation you were working on in the morning. However, you are interrupted to attend a meeting with senior business leaders. They have been informed that a significant competitor is about to give an unscheduled announcement after the close of the market later that day, usually signaling bad news. You have been asked to listen and be prepared to issue a response immediately after to reassure potentially jittery investors.

You spend the rest of the day reviewing the financials of the competitor, so you have the necessary background information to craft your response quickly. You work late that night, reading the after-market statement. You draft your response and send it to the CFO, who greenlights it. You send it to your financial market news contacts for them to publish and your internal team to publish on your company’s website.

Qualifications and Experience for Investor Relations

IR roles usually require a bachelor’s degree in finance, accounting, communications, economics, or related fields. A master’s degree (such as an MBA) is not necessary but is usually considered an asset.

There are relatively few entry-level positions in IR. Companies usually require anywhere from two to seven years of work experience where the applicant has gained expertise in investor relations, public relations, financial investment, accounting, legal, and other fields.

These experiences are strongly preferred to be with a publicly traded company that operates under the regulatory framework regarding investor information disclosure laws. Experience within the same industry as the hiring company is also a plus.

Required Skills for Investor Relations

Working in IR requires extremely effective communication (verbal, written, and graphic) skills and the ability to develop and maintain business relationships. A strong understanding of financial reports, analytic methods, and financial data tools is often required. Due to the large amounts of data to be processed and presented, applicants should have intermediate-high proficiency with the MS Office Suite, particularly Word, Excel, Access, and PowerPoint, as well as the ERP software of choice used by the company.

Compensation and Career Development in Investor Relations

Compensation for IR professionals varies depending on industry and company size. Generally, mid-size companies offer lower compensation than large private equity firms. Entry-level IR analysts can expect to earn a salary between that of a public relations specialist and a financial analyst, with salaries ranging from moderate to high. Experienced IR professionals can earn salaries similar to those of top executives in other areas of the company. IR managers in large organizations are among the highest-paid professionals, with compensation levels reflecting their significant responsibilities and the level of experience and expertise required for this role.

Investor Relations Career Profile (2024)

FAQs

What is an investor relations job description? ›

A head of investor relations is a high-level professional in finance who helps companies maintain profitable investments and positive shareholder relationships. Their job can involve high volumes of research, as they often research new investments and current market trends.

What is the career of investor relations? ›

Working in Investor Relations

IR works to relay what the investor community may see as assets and flaws, what they want to be changed, what they don't understand, and what will drive the value of shares based on current and predicted investor demands.

Is investor relations a high paying job? ›

As of Aug 19, 2024, the average annual pay for an Investors Relations in the United States is $117,419 a year. Just in case you need a simple salary calculator, that works out to be approximately $56.45 an hour. This is the equivalent of $2,258/week or $9,784/month.

How to land an investor relations job? ›

How to become an investor relations manager
  1. Earn a bachelor's or more advanced degree. ...
  2. Find an internship or a part-time position. ...
  3. Develop your experience in investor relations. ...
  4. Network with industry professionals. ...
  5. Join a professional organization. ...
  6. Consider pursuing a certification.
Jun 27, 2024

How much does VP of investor relations make? ›

While ZipRecruiter is seeing annual salaries as high as $231,500 and as low as $33,000, the majority of Vp Investor Relations salaries currently range between $82,500 (25th percentile) to $153,000 (75th percentile) with top earners (90th percentile) making $175,000 annually across the United States.

How much do VC investor relations people make? ›

$80,000 - $120,000

Develop and implement investor relations strategies and initiatives.

Is investor relations stressful? ›

Investor Relations Analysts often face intense periods of work during earnings release cycles. The preparation, dissemination, and follow-up of financial results can lead to extended hours and significant stress, as accuracy and timeliness are paramount.

How much does a Goldman Sachs investor relations analyst make? ›

The estimated total pay range for a Investor Relations Analyst at Goldman Sachs is $97K–$127K per year, which includes base salary and additional pay.

How much does an investor relations analyst at JP Morgan make? ›

The estimated total pay range for a Investor Relations at J.P. Morgan is £67K–£73K per year, which includes base salary and additional pay. The average Investor Relations base salary at J.P. Morgan is £70K per year.

How to get into investor relations with no experience? ›

Most firms do not recruit candidates right out of university for IR roles. You normally need a few years of experience in another field of finance, such as IB, ER, CF, or fundraising, to do the job effectively.

Why do people go into investor relations? ›

IR professionals can make or break the way investors and potential investors perceive information about your company before, during, and after the IPO or SPAC. It is critical to vet and select the right people for this important task.

What education do you need for investor relations? ›

Investor relations specialists need a minimum of a bachelor's degree in finance, accounting, business, marketing, public relations, or a related field. Many IR professionals have a master's degree in one of these aforementioned majors.

How much do investor relations associates make? ›

Investor Relations Associate Salary in Los Angeles, CA
Annual SalaryHourly Wage
Top Earners$189,641$91
75th Percentile$144,900$70
Average$101,048$49
25th Percentile$66,800$32

What is another name for investor relations? ›

In some companies, investor relations is managed by the public relations or corporate communications departments, and can also be referred to as "financial public relations" or "financial communications." In smaller companies, the IR function is often outsourced to independent investor relations firms.

What is included in investor relations? ›

Investor relations (IR) is a strategic responsibility whereby organizations manage communications between their executive leadership and the financial community. IR provides an accurate account of company affairs to investors, which helps them to make informed decisions about whether to invest in the company.

How much do fund investor relations people make? ›

The estimated total pay for a Investor Relations is $228,385 per year, with an average salary of $127,833 per year.

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