Understanding best-practice IR.
Best practice IR goes beyond compliance. It’s about proactive, transparent, and scalable communication that builds trust, improves market outcomes, and strengthens relationships with all investors - not just a select few.
Investor relations has always been a critical function for public companies. But as markets evolve and investors become more self-directed, IR must evolve too.
Today, best practice IR goes beyond compliance. It means building direct relationships with shareholders, engaging consistently and transparently, and shaping market perception at scale.
Why best practice IR matters.
Best practice IR helps companies:
- Build long-term trust and loyalty among shareholders
- Improve liquidity and reduce price volatility
- Strengthen communication during capital raises
- Maintain control of the market narrative
- Increase engagement from both institutional and retail investors
In other words, it directly contributes to stronger market outcomes including better trading behaviour, valuation stability, and shareholder confidence.
And importantly, the best-performing public companies are already doing it. Berkshire Hathaway, for example, is renowned for its long-form investor letters, annual meetings, and direct-to-investor communication style.
As IR becomes a source of competitive advantage, companies that don’t evolve risk falling behind those who do.
What defines best practice IR?
Best practice investor relations is proactive, scalable, and grounded in transparency. It typically includes:
- Clear and consistent messaging
The best IR teams explain company performance, strategy, and updates in a way that is understandable for all investors - not just analysts and institutions.
- Proactive investor engagement
Instead of relying solely on earnings seasons or roadshows, best practice IR involves planned, ongoing communication throughout the year.
- Access for all investors
Best practice IR doesn't stop with the top 20 shareholders. It includes retail and self-directed investors, recognising their influence on liquidity and trading volume.
- Two-way communication
Good IR isn’t just broadcast - it’s a conversation. Best practice includes answering investor questions, gathering feedback, and being responsive to concerns.
- Insight-led decision making
The best IR teams measure and analyse investor behaviour to shape strategy - tracking engagement, sentiment, and trading reactions to announcements.
What drives best practice IR?
Most IR teams already engage their key investors one-on-one. Best practice IR is about scaling that same quality of engagement across the entire shareholder base, without adding more time or headcount.
It’s a shift in mindset - from managing relationships manually to building systems and processes that engage every investor efficiently and consistently.
Best practice IR helps public companies go beyond the basics. It’s not just about reporting results - it’s about educating, engaging, and building trust with all investors.
Companies that embrace best practice IR are better positioned to manage perception, respond to market dynamics, and create lasting shareholder value.