Big boost to CFO reporting lines as senior management increase IR focus

CFOs are taking on increasing responsibility for the investor relations program, with new research showing that 75 percent of IR teams now report to the chief financial officer globally – a figure that is up from 66 percent just a year ago.

That’s according to the latest Global Investor Relations Practice Report from IR Magazine, which covers everything from senior management involvement in IR to team sizes, salaries and IR budgets. It explores these factors globally as well as diving into the figures from Europe and North America separately.

This year’s report shows that CFOs are increasingly stepping up when it comes to their involvement in IR, not only heading up the reporting line but also dedicating an increasing number of days to IR activities – particularly at North American firms.

Studio 54 (days on IR)

‘North American senior managers spent an average of 54 days in total on IR in the past year, significantly higher than both the global average and the figure for the region recorded in 2023, when North American senior managers dedicated 45 days to their company’s IR function,’ writes report author and IR Magazine editor Laurie Havelock. ‘This brings the time allotted to IR by North American senior managers back to above their pre-pandemic level of 46 days in 2019.

‘This increase has been driven by CFOs, who added four days year on year, and other members of management, who added five, while CEOs allotted the same number as in 2023.’

Globally, Havelock notes that while CFOs continue to dedicate the highest number of days to IR, other members of the management team dedicated a growing proportion of time to IR this past year.

‘Senior managers globally spent nine more days on their company’s IR efforts in 2024 than in the previous year, reversing a trend last year that saw their involvement lessen,’ he explains, adding that, across most cap sizes, the ‘largest increase has consistently come from members of management other than the CEO or CFO’. 

This implies that ‘IR teams are enjoying more buy-in from other department heads, perhaps as they increasingly use the wider expertise within their company to communicate with stakeholders,’ he suggests.

Inside the minds of CFOs

This year, IR Magazine launched a new profile series featuring in-depth interviews with finance chiefs around the world, across different cap sizes and sectors. Most recently in The CFO we heard from Gord Nelson of Cineplex, who talked about where IR has really proved its worth to the company and what he, with 20 years in the CFO seat, looks for from Mahsa Rejali, Cineplex’s vice president of IR and corporate development.

Back in January 2024, the interview series kicked off with Kurt Barton, CFO of Tractor Supply Company, who shared his thoughts on everything from how the company measures the success of its IR program to the ways the company gets city analysts into the rural lifestyle mindset.

Mary Winn Pilkington, Tractor Supply Company’s senior vice president of IR and PR who works closely with Barton, shared her thoughts for this year’s Global Investor Relations Practice Report – including on how to ‘sell’ IR to other teams internally.

‘Across my career with three Fortune 500 companies, the IR function has always reported to the CFO,’ explained Pilkington. ‘I think this makes a lot of sense as IR can benefit from the financial acumen and strategic insight of the finance chief. Reporting to the CFO helps ensure consistency in messaging with the company’s financial strategy and goals and, in turn, helps build trust and management credibility with the investment community. The CFO can also help with resource allocation to ensure the IR department can reach its goals.’

Pilkington also shared her thoughts on being your own internal PR machine. ‘We try to give senior management indications of the effectiveness of targeted activities,’ she explained. ‘For instance, at the end of all investor meetings or conferences, we try to rate the quality of the interactions. We then track the subsequent follow-through by investors. We can then pivot as we plan the calendar for upcoming activities. Be proactive in managing your internal ‘public relations’ for investor relations.’

As well as featuring comments from Pilkington across a range of findings, the report also features insights from fellow IR Magazine editorial board member Adam Borgatti, senior vice president, corporate development and IR at Aecon, and Stefan Marin, head of IR at Frequentis.

Click here to download the IR Magazine Global Investor Relations Practice Report 2024 – North America, or the IR Magazine Global Investor Relations Practice Report 2024 – Europe.