Using Social Media in Investor Relations

Did you know that 57 percent of all internet users have an online profile? Social media on the internet such as Facebook, Twitter, and Youtube have changed the way we communicate. As such, it is changing the way we communicate in an investor relations capacity as well.

It is now generally accepted that public corporations should establish social media policies, and not only for IR purposes. When friends read personal messages on social networking sites, it is sometimes easy to gather information pertaining to the writer's employer. In this way information can be disseminated that would otherwise not be. Generally, however, social media is to be viewed in a positive light. Used proactively, social media opens up avenues of information exchange in real time to audiences that can be extremely focused and receptive to your message.

Through social media it is possible to target audiences very precisely and engage in a true dialog in real time. We are only beginning to tap the great potential of these new technologies.

Additionally, It is important to remember to stay within the boundaries of Reg FD and not disclose information that is not available to everyone. This is the inherent danger of social media in IR. Therefore, we recommend using the company website as a central point in all communications. Put everything there first and then use that information as a starting point for dissemination in social media channels.

And above all, content is king. More communications means more noise in an already noisy world. We believe it is important to always prioritize quality over quantity in all IR communications.
For further reading visit our Investor Relations blog.

What's Your Board's Competitive Advantage?

In a Market-Rebound economy, investors are looking for companies with a management team capable of setting an effective growth strategy and being able to deliver. If your company experienced disappointing earnings during the past year, it's critical that you mobilize the best team of C-level professionals within the company and as consultants that you can afford to build and execute the strategy. Then, engage investors with compelling communications showing why things are going to be better in the future.

One source of corporate Competitive Advantage is its Board of Directors. Outside Directors, whose expertise often is grounded in experience from other industries, provide extra expertise to help the Management Team to:

• Identify major discontinuities that could impact on corporate performance.
• Recognize external factors that might affect the company's strategy.
• Assess internal factors such as corporate culture, leadership, structure, strategic implementation.
• Set goals and assess how well they are met.
• Manage tensions among key executives and departments.
• Facilitate effective succession planning.

Each Board Member's goal is value creation - focusing on the substance of the company's business, or the processes by which it seeks to make a profit. He /she should have the courage to remain independent while challenging corporate assumptions, and still possess compassion to help management with coaching, counseling and giving feedback. He should be a good collaborator and be aware of Board dynamics. A passive role is not welcome.

To the extent that your Board and/or Advisory Committees provide your company with a distinct Competitive Advantage, let your investors know how they are helping the management team outperform competitors. To the extent you're not getting it, consider bringing in new members.

For information on how to get the most out of your board of directors, give us a call at 646-290-7664.