Investor Relations at a BB
Anybody have some insight into investor relations positions at a BB? Is this usually just considered a "middle-office" accounting/reporting type of role, or do you actually help set up investor roadshows and things of that nature?
Any opportunities to lateral into another position at the BB? Exit opps? Thanks!
Investor Relations roles at BB (Originally Posted: 08/19/2013)
Hi All,
Currently working for a BB in London, met somebody today from the IR team. Work sounds interesting and far less modelling intensive than traditional banking.
Does anybody know what an IR role at a BB would involve? Day to day? Also, anyone know what pay and progression is like?
Thanks,
Is this the same as corporate broking business?
Would also be interested in more info about this.
Their primary role is to interface with shareholders of your company's stock or with prospective investors. It could be in the form of Q&A during roadshow meets or via phone and/or email. When your firm's CEO and/or CFO goes on a roadshow to meet important buyside shareholders, IR reps are usually there with them. The role entails not only answering questions or doing presentations, but also preparing the pitchbooks for investors to look at. They are particularly busy after quarterly earnings have been released & after other corproate actions have been announced.
I work in a Corporate IR role (~$2B Tech Company), and the above poster has the gist of it. Spend most of my time answering investor and sell-side phone calls, meeting with investors, hosting lunches, etc...
A very social role, that does require some financial knowledge, as I am also responsible for internal P&L projections, and checking over sell-side models to see where they see us for the quarter. Not to mention answering the questions of analysts/pm's.
Pay varies widely, I am in the #2 spot, 3 years out of a non-target undergrad with a base of ~$90k and a 10% bonus. Not 100% sure what my boss makes, but I assume it is double.
Interesting. How is recruiting for that position? I can't imagine it's a position that is actively recruited for at the undegraduate level. Do you prefer experienced hires? Post-MBA? What is a typical "entry-level" salary, if any?
Correct. IR teams are typically very small, 2-4 people with a couple of admins assisting in booking travel and meetings (which you will do a lot of btw), thus there isn't a whole lot of undergraduate recruiting. Entry level roles (if you can even find one) out of undergrad will probably be all data work, with little in person meetings, so I would guess around $55k. If you can break into an MBA level role without an MBA (I knew the management team from working with them as a consultant), it is a great way to make decent money at a young age without slaving away until 11pm every night.
Another thing to consider, IR's responsibility and influence varies quite a bit between different companies. For some CEO's, IR is an after thought and exists only to satisfy the market. Whereas we have quite a bit of influence, and spend half of our time on the road with the CEO, at roadshows and dinners.
Great exposure to the buy-side and upper management if you are at the right company.
Probably depends on the size & structure of the organization as positions to fill in IR are usually low. If we're talking about HQ of a major firm, there might be a few young peeps who are hired into IR either immediately or after a few years service in the firm. However, if we're talking about the NY office of a major German or Japanese company, for example, then it's probably a 1-5 man shop & you need to be directly connected to the head to get in. They obviously have to deem you as having an advanced understanding of the company's earnings & financial situation (plus interactive skills) before they'll even place you in front of investors. You are, after all, the face of the company (and a salesman) in these situations.
Thanks for the comments, it sounds exactly what I'm after.
A couple more questions if you wouldn't mind:
Thanks
1) I am on a plane two to three times a month, with trips lasting anywhere from 1 night to 4 nights. Typically, we will bounce around once we get to a certain location, IE if I'm in LA, I will also visit SF... I am in New York, so naturally, we have exposure to a lot of investors, without having to go very far. I imagine travel would be increased if you were in a smaller city.
2) Absolutely. I come from a finance background, majored in Finance/Economics, did consulting at a small shop for 2.5 years. And it was definitely helpful getting my gig here. IR at this specific company also assists the Finance department quite a bit. Accounting knowledge is definitely helpful, along with intermediate Finance knowledge. You should know how to build financial models, along with pretty in-depth knowledge of valuation metrics, as every investor you meet seems to ask about different metrics.
3) I would say that IR is definitely more of a focus in the states.
The IR field in my opinion is great, if you get in at the right company. As i mentioned earlier, many firms view the division as an after thought, thus there aren't many internal opportunities. I like that I have consistent contact with the executive team (My office is in the same hallway as theirs), I get to travel, meet interesting people, and the pay is pretty good early on. You'll never make $500k a year in IR, but getting to $150k is reasonable at a young age.
Hope this helps.
@MKM
Thanks for your insight. Would you consider knowledge of financial modelling as crucial for your role, or is it more or less a nice benefit to have on the side?
No problem.
We have our own internal model that we use as a reference to help "guide" the sell-side models. Part of my quarterly responsibilities is to build out/update the model, which is used by a couple of different groups within the company.
Furthermore, I am also responsible for looking over the models that the sell-siders put out. They will typically send me their excel models throughout the quarter, in which case I review for accuracy and such. You'd be surprised how many times we've caught errors in formulas and models, that were throwing off consensus estimates.
In this specific role, modeling was a requirement, though it is only a very small part of my day-to-day.
@MKM
Thanks for the insight. I have sent a PM to you.
Thanks MKM, given you a silver banana for your insights!
Sounds like IR might be a good option to earn some good money early in your career, but what about later on? Where do people who are in IR in their late 20s seem to end up?
Thanks
IR is something you do after you burn out. I have heard of people going from IR to ER etc., but I think that would be less likely than the opposite. I've also heard of IR guys moving up the totem pole within the finance function in the company, but again, probably rare.
I don't know why you'd pursue IR if you're young and already in capital markets.
I think my problem is that moving from corporate finance (even at a bank) into capital markets isn't an easy or obvious move, whereas CF --> IR --> Cap markets is more clear?
bump
Great spot to be at least at my bank. The group is tiny (8 people) and has a couple analysts. The CFO and other seniors know the whole team including juniors by name. The cool thing is that the exit ops within the bank are limitless since the seniors can literally pick up the phone for you and get you placed, as such most juniors have transitioned to FO roles following their stint if that's what they wanted.
Interesting to hear that Quaneaser, may I ask which bank, or at least what size/location?
Investor Relations Analyst Role ? (Originally Posted: 03/23/2015)
Is this a good starting role coming out of undergrad? Exit ops? Skillset?
I guess that really depends on what you want to do. Also who its with and if its in a syndicate group where you are setting up investor roadshows and all that. If so you will get good expose and contacts to the desk but this is such a general question i have no idea
It's for a BB bank " Develop IB skill set & deal with senior management, credit agencies etc."
Investor Relations Careers (Originally Posted: 04/13/2009)
Does anyone have prior experience in investor relations? Where would one look to find such jobs? Any insight is much appreciated, thanks.
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