Investor Relations is in the DNA of Fidelio Partners and so I was delighted to see an article in the FT espousing Investor Relations Directors as a source of Non-Executive Directors.
I approach this topic with insight based on many years’ IR experience. This arises from my previous roles as head of the global IR function in two leading European companies; my growing board portfolio, which covers Asia, Europe and the US and as a co-founder of Fidelio, a Search and Development consultancy specialising in this field. I have spoken at various events and we have written extensively in a range of publications on the career trajectory of an IR Officer (IRO), as well as the topic of IR to the Board.
But, as highlighted in the FT article, while a handful of IR Directors do move into Non-Executive roles, the numbers remain small and most Chairmen do not look to IR as an obvious source of future Board Directors.
Many Chairmen question whether the IR function provides the breadth necessary to contribute at Board level. Those who have headed a global IR function may bridle at the inference that the role is too narrow. However, it is right to recognise that many IROs are not in strategic roles and some behave like technicians rather than business leaders.
The Road to the ‘Top Table’
Therefore, IR Directors who aim for a seat on the Board have to contend with perception as well as reality. And this is where Fidelio recognises that a more strategic response than simply flagging that IROs represent a good pool of future Board directors is required. This is our analysis of what needs to be done:
- We need to address the challenge that most Chairmen do not consider IR Directors to have the breadth of experience to be able to contribute at Board level.
- The industry and IR professionals must act collectively and individually to demonstrate that an IR Director has much to add to the Board room discussion.
- IR industry bodies such as NIRI and the IR Society must take up the torch and create a pathway for their members.
- Individual IR Directors must take their own careers in hand. They must ensure that they both add value in what is a critical role for the company but also that the value is understood and appreciated. Importantly IR Directors must continue to grow and develop as business leaders and be recognised as such.
We recognise that this can be a major challenge and difficult for an IR Director to tackle in isolation. Fidelio’s strategic response to the IR glass ceiling is a targeted development programme “A Seat at the Table” the first of which is being held at the Royal Military Academy Sandhurst on 8th- 9th September 2015.
This is the inaugural Programme in a series and responds to the criticism expressed in the Davies Report that most companies do not have a sufficiently strong pipeline of female executives to become the next generation of Chairmen and CEOs. Technical skills are a given and we focus on the personal and professional development of Senior Female Executives as a preparation for the critical transition to the most senior Executive and Non-Executive roles within an organisation.
In a nutshell, we provide each participant, including senior IR Directors, with a framework for understanding her own leadership style; a mirror for personal presence; and a road map taking account of internal and external stakeholders with practical steps to navigate the transition to Senior Executive and Non-Executive roles. Additionally we explore resilience and leadership “at the sharp end” or under extreme pressure.
Should you have further questions on any aspect of this article or Fidelio’s IR Search and Development capability, please do not hesitate to get in touch.
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