Executives today face a challenging dilemma: balancing an increased focus on shareholder engagement with the reality of declining shareholder loyalty. Too often, companies fail to understand their shareholders in the same as their customers and cultivate shareholder loyalty, which can undermine corporate strategies and harm the delivery of long-term shareholder returns. Companies can actively conduct shareholder profiling, similar to customer profiling, to better understand investor preferences and develop tailored engagement strategies that build and strengthen shareholder loyalty.
Companies are dedicating increasing attention to investor relations (IR) management to cultivate shareholder loyalty. On average, CEOs allocate 15 days per year to IR activities — a notable commitment given the breadth of their responsibilities. In total, senior management spends 44 days annually on IR, with CFOs contributing the largest share (23 days), while other executives devote an average of six days.
