If you are the CEO of a company, communication is or is going to be a permanent big time priority for

you. Why? Because the value of your company now depends on how well

investors understand your business and its potential.

Communicating with investors isn’t easy. First you have to get their

attention. And you’re competing with 27,000-plus public companies in

the United States, all seeking to get close to a relatively small

number of institutions, which are the investors that count these days.

So it’s clear that you’ll need help–very special and specific help.

Where do you get it?

Creating an investor relations office (that’s what we’re talking

about) within headquarters staff is realistic only for fairly hefty

enterprises. So the alternative is probably an agency.

Here are a few points to remember as you evaluate those charming,

smiling, smart-talking folks who will compete for your account:

A. Make certain you know who’s working for you at the agency. The

impressive men and women who finally get your nod may be the

agency’s “closers.” The actual work may end up being done by some

bright youngster out of the mail room or the secretarial pool who’s

learning the craft at your expense.

B. Make certain the person on your account had direct Wall Street

experience. IR isn’t quite like PR: the rules, the audiences, and

the message are all different. Your account executive has to know

how to talk to investors and how to feed back investor concerns to

you. That comes only for down and direct acquaintance with

investment people and the investment process.

C. Keep in mind that in IR, you, the CEO, are directly part of the

team. In marketing terms, you’re the product manager in charge of

selling one of your company’s principal products, its investment

value.

D. One more point in selecting an agency: bear in mind that in making

such a choice, you may be the classic uninformed buyer. There’s

probably nothing in your background that prepares you to make the

right decision here. So take your time, check referrals, talk with

finalists again.