The Investor Relations Checklist

by Boris Feldman

The investor relations issues facing a public company are a complicated mixture of legal obligations, practical necessities, and the ever-present danger of shareholder litigation. Below is a list of questions covering some of the most important areas of concern to an investor relations officer & indeed, to company management as a whole. It is important to stress that every company's situation is different and that a company should tailor its investor relations policies to its unique situation.

Context: It's a Dangerous World

Existence — and Documentation — of an I/R Policy

1. Have we reviewed our I/R needs lately?

2. Are our I/R policies set forth clearly and in writing?

3. Are our practices consistent with the policy?

Chain of Command and Information Flow

4. Who can talk to the Street?

5. Is everyone singing from the same hymnal?

6. Is our information up-to-date?

Review of Analyst Reports

7. Should we review draft analyst reports?





8. On what issues should we comment?

Distribution of Analyst Reports

9. Should we send out copies of analyst reports?

The Investment Bank's Ethical Wall

10. What should we expect of our bankers?

The Earnings Release Conference Call

11. Should we hold a post-earnings release conference call?

12. How should we structure the conference call?

Forms of Guidance

13. What are the consequences of guiding the Street?

14. How much guidance do we want to give?





15. What method of guidance should we use?

16. How should we formulate the guidance?

17. What about "buy-side" analysts?

The Quiet Period

18. Should we adopt a quiet period?

19. How should we implement a quiet period?

* * *

 

Boris Feldman is a partner in the litigation department of Wilson, Sonsini, Goodrich & Rosati.