EP32: Peter Reynolds: How to Succeed in IR - Lessons from a 30-Year Career

09/18/24 • 36 min

While investor relations may have evolved over the past 30 years, some things remain consistent – the value of building great relationships with investors has always been fundamental to building a successful career in IR. As someone with an impressive 30-year career across corporate finance, equity research, and investor relations, Peter Reynolds, Director of IR at Whitbread, joins this episode of Enquire, the Investor Relations Podcast, to share insights and advice gained from IR roles in multiple industries.
How Persistence, Being Proactive, and Getting Direct Feedback Are Key to Succeeding in IR
Peter takes us on a journey through his diverse roles, including his time at Rank Group and PartyGaming, where he built an IR programme from scratch and balanced regulatory affairs with investor communications. He offers his perspective on the evolution of IR over the past two decades, emphasising how the role has become more challenging yet more valued by senior management. Peter shares his approach to staying on top of current information from results days and industry changes and how he uses that knowledge to be proactive in his communications with company boards.
We explore the complex truth around measuring success in IR, with Peter arguing that conventional metrics like share price performance may not always reflect the true value of IR efforts. For Peter, persistence and open communication with investors (sometimes over years) are key to seeing success and tangible results.
In This Episode

Peter takes us through his career journey and what has driven him to pursue IR
What it was like managing regulatory affairs in the gaming industry
Peter explains the learning curve he had when his role involved political lobbying
How IR has evolved over the last 20 years
Tips for keeping on top of information so you can be proactive with investors
A typical day in managing IR at Whitbread
How to measure success in IR
The value of direct investor feedback
Peter’s experience of presenting to the board
Whitbread’s typical roadshow schedule
Why IR teams need to stay on top of ESG matters
How a digital-first approach has impacted IR
Peter’s advice for anyone looking to start a career in IR

Quotes:

"Being in a meeting and just watching that light bulb go on in an investor's head is a magical moment and one that I never get tired of pursuing."
"IR is relatively easy when everything is going well. But when things are in a downturn or business is perhaps not performing well, it's when IR really comes into its own and we have to work the hardest."
“Conventional success metrics are not always what you would think in IR because in many ways you just have to keep going and keep having those meetings and keep banging on the door and then you never know, at the right moment, the investor will pull the trigger.”

Resources:
Connect with Peter Reynolds

Peter takes us through his career journey and what has driven him to pursue IR
What it was like managing regulatory affairs in the gaming industry
Peter explains the learning curve he had when his role involved political lobbying
How IR has evolved over the last 20 years
Tips for keeping on top of information so you can be proactive with investors
A typical day in managing IR at Whitbread
How to measure success in IR
The value of direct investor feedback
Peter’s experience of presenting to the board
Whitbread’s typical roadshow schedule
Why IR teams need to stay on top of ESG matters
How a digital-first approach has impacted IR
Peter’s advice for anyone looking to start a career in IR

Quotes:

"Being in a meeting and just watching that light bulb go on in an investor's head is a magical moment and one that I never get tired of pursuing."
"IR is relatively easy when everything is going well. But when things are in a downturn or business is perhaps not performing well, it's when IR really comes into its own and we have to work the hardest."
“Conventional success metrics are not always what you would think in IR because in many ways you just have to keep going and keep having those meetings and keep banging on the door and then you never know, at the right moment, the investor will pull the trigger.”

Resources:
Connect with Peter Reynolds

Previous Episode

EP31: Isabel Green: Why Relationship Building & Curiosity Are Must - Have Traits in IR

Have you ever wondered what truly sets successful investor relations professionals apart? In this episode of Enquire, the Investor Relations podcast, we explore how the power of curiosity and relationship-building have helped Isabel Green, Former EVP & Head of Investor Relations at Rolls-Royce and now IR Director at HBX Group, lead a successful IR career.

Relationships Are at the Heart of IR

Isabel shares her journey through various sectors and highlights the importance of diving into new roles and learning as much as possible. For Isabel, being curious and committed to learning is essential for IR, as is the ability to develop great working relationships with investors and colleagues.

We hear her take on how to enhance your messaging for investors, using a mixture of content resources and effective communication that puts the audience’s needs front and centre. She explains how this helps to drive results and build lasting relationships with potential investors.

Throughout the conversation, Isabel also reflects on her experiences managing investor relations during challenging times, including corporate transformations and market fluctuations.

In This Episode:

Isabel takes us through her career moves and why she found her passion for IR
The top lessons she learned in IR
How to strike a balance between transparency with shareholders and company protection
How to create effective messaging strategies for investors
The most useful traits and skills IR professionals need
How IR has evolved throughout Isabel’s career
Different ways IR teams can track performance
Rolls-Royce’s approach to IR
The top trends in IR tech including CRM software and AI
Advice for starting your IR career
The biggest challenges Isabel has faced in her career

Quotes:

“If you don't know what's going on in the business, you're not much use to the investors. If you don't know what's going on in the market, you're not much use to your board and your executive team.”

“Being curious, I think is the most important. You've got to love learning. You've got to love understanding new things.”

“If someone ultimately is investing hundreds of millions in your company, they want to look you in the eye. They don't want to be asking a chatbot.”

Resources:

Connect with Isabel Green

Next Episode

EP 33: Maria Elena Drew - How IR Professionals Can Integrate ESG into Investment Decisions

ESG matters have become a major focus in investment portfolios over the past decade. What was considered a more niche branch of investing has taken centre stage in the world of investor relations. In this episode of Enquire - The Investor Relations Podcast, we sit down with Maria Elena Drew, Director of Research for Responsible Investing at T. Rowe Price, to learn more about how IR teams can approach ESG.

Balancing Responsible Investing with Financial Performance

Maria shares her fascinating journey from equity investor to ESG specialist, recounting her experiences with high-profile cases like Enron and Yukos. She offers a unique perspective on how these experiences shaped her approach to incorporating ESG factors into investment decisions.

Maria takes us through T. Rowe Price's proprietary ESG rating system, known as the Responsible Investing Indicator Model (RIIM). She explains how this system covers over 15,000 corporate issuers and combines data from various sources with their own fundamental analysis. Maria also discusses the collaborative approach between the responsible investing team and portfolio managers, highlighting how they work together on company engagements and portfolio reviews.

The conversation then shifts to the specifics of analysing companies through an ESG lens. Maria breaks down how T. Rowe Price examines environmental and social metrics, considering both a company's operations and its end products. She emphasises the importance of tailoring the analysis to different industries and geographies, showcasing the nuanced approach required in responsible investing. Throughout the episode, Maria's insights provide a valuable glimpse into the evolving world of ESG integration in investment decision-making.

In This Episode:

Maria takes us through her career history
How she began to learn more about ESG issues
What investors want to know about ESG
How her team operates
The challenges of ESG
Metrics her team looks at when assessing high-risk companies
How T. Rowe Price measures environmental impact
Why ESG exclusions could be harming sustainability goals
Engagement between companies and PMs
The current trends in ESG benchmarks and investing

Quotes:

“What's interesting about ESG is it grew so fast in the industry, you know, it went from being pretty much irrelevant, except to really niche group of investors, to becoming a table stakes requirement.”

“The number one trend we're seeing right now is looking at a relatively new metric, which would be net zero status.”

Resources: