Capital Markets / Investor Relations in Two Minutes or Less
The Art of War and Communications

Recently, I had a discussion about shareholder activism.

Management teams facing activism seemingly wait or ignore help from those that can solve the problem.

The Art of Communication

The art of communication can be difficult for executives and investors.

Investors ask direct and difficult questions; the tone or topic can be off putting.

The Art of Delivering Bad News

Throughout my IR career, I have had to deliver bad news to management teams regularly.

I do not know of an optimal or easy way to bring bad news to successful people that do not wish to hear that message.

Nevertheless, a best-in-class Investor Relations Officer must be able to credibly say no to an executive.

So What?

Management teams benefit from listening to the negative messages they dislike.

If the Investor disliked you, the Investor would just ignore you.

Caesars Entertainment: A Case Study

I had the privilege of leading Investor Relations for nearly a year in 2019. The experience taught me a lot about myself and, more importantly, the art of communication.

What I Learned?

1. Lack of Control: Nothing I did, or did not do, was going to change the outcome. The business needed change and a new philosophy for it to grow.

2. Culture: I learned quickly cultural fit matters. I was Rodney Dangerfield at Bushwood Country Club, but worked to achieve the best outcomes for the company, the executives, and investors.

3. Experience: I would repeat the experience in a heartbeat, and not change anything. I met many incredible people and am grateful for the experience.

I wish Caesars nothing but success and have no ill will toward my experience there.

Yet, I still encounter interviewers that say to me, “Caesars thinks you are trash, why should we hire you?”

Nevertheless, I accomplished a lot!

1. Financial Expectations Management: I optimized financial expectations through communication with the sell-side, despite limited information.

2. Meet / Beating Guidance: We met or beat guidance in each of the three quarters I led the IR program, resulting in a 30% higher acquisition price.

3. Credibility: I did nearly 20x investor interactions a week. I talked to everyone. Our narrative was solid and gave us credibility.

Key Learnings for Public Executives

1. Negative Messages: Be open to negative messages from the IRO, as such messages are meant to improve your performance and lengthen your tenure!

2. Difficult Personalities: Recognize that seemingly difficult investors actually respect you, otherwise they would just ignore you.

3. Communication: Always communicate with your investors, and those people that can make your life easier!

When Investor Relations is too tough for you, its just right for me!