Financial Crisis IR: Doing More With Less
IR Magazine (04/09) Stewart, Neil
A new survey from the National Investor Relations Institute (NIRI) finds that the economic downturn is cutting into investor relations (IR) spending. Among corporate NIRI members, 58 percent said they have cut their IR budgets, though only one in three of the largest companies said they have made cuts and another 20 percent said they have increased their IR budgets. But vendors are feeling the pain--half of IR counselors said their business has declined and 71 percent of small companies said their business is down by more than 25 percent. Still, 80 percent of corporate respondents said the time management spends on IR has increased or stayed the same, and 89 percent of IR officers said their contact with top management has likewise increased or remained steady. Smaller companies are the most affected because of their need to cut costs, says NIRI President and CEO Jeff Morgan, but he adds that cutting an IR budget is “shortsighted” because a company must "continually" stay connected to investors. "We continue to have to show the value of IR to companies that are smaller and newer,” he says.
