Confessions of an IRO Episode 3 Recap: Protecting Credibility When the Plan Meets Reality

Investor relations teams spend months preparing narratives, anticipating questions and aligning leadership ahead of major market moments. Then a CEO resigns the night before results, a rumour begins moving the stock or a shareholder who once seemed supportive starts asking much sharper questions.

That was the focus of the third episode of Confessions of an IRO, where Q4's Jamie Stanton was joined by Irina Zhurba, Director of Investor Relations at Redcare Pharmacy, Isabel Vilela, IR Consultant and Geoff Callow, Head of Investor Relations at Ecora Resources.

Throughout the session, one message remained consistent: when the unexpected happens, credibility depends on getting the facts, understanding the people involved and resisting the pressure to react before you are ready.

The First Move Is to Validate

When unexpected news breaks, the pressure to respond can be immediate. Analysts begin calling, investors want answers and leadership may feel compelled to say something before the full situation is understood.

The panel agreed that the first step is to identify exactly what happened.

Zhurba explained that the response will depend on whether the issue is a market rumour, an error in a sell-side report, an executive departure or a material development that triggers regulatory disclosure. The right internal teams and external advisers can only be brought in once the nature of the event is clear.

Callow reinforced the importance of taking that time, even when the market is demanding an answer.

"The worst thing you can do in that situation, is feel pressured to have a knee-jerk response when you haven't got the full information." - Geoff Callow

An IRO can acknowledge that the company is assessing the situation and commit to returning with more information. A measured response protects credibility far better than speculation that later needs to be corrected.

Vilela also emphasized the value of a crisis management playbook. She recalled having to evacuate a room full of investors and analysts because of a bomb threat during a results presentation. No playbook can predict every scenario, but preparation gives the team a foundation when the plan suddenly changes.

Activist Pressure Often Builds in Plain Sight

Activist situations can appear sudden from the outside, but the panellists described a much longer runway.

Zhurba encouraged IROs to look beyond the activist and pay close attention to the company's existing shareholders. An activist gains influence by bringing other investors on board, particularly those who once supported the company but have become frustrated with its performance or direction.

Those moments require the IRO to look for the question behind the question. What is the investor truly concerned about? Which part of the investment thesis is no longer working for them? If those concerns are repeatedly heard without being addressed, that shareholder may be far more willing to support an activist later.

Callow added that share register analysis can provide another early indicator. When a known activist begins building a position, the IR team can research its previous campaigns and begin preparing. In one situation he experienced, the activist engaged privately with the company for 12 to 18 months before going public.

"It's not necessarily as simple as somebody buying shares and going active the next day. There's normally a big leading period to that, which you can do some preparation and groundwork for as an investor relations team." - Geoff Callow

Zhurba cautioned that the campaign itself may continue for two to three years. During that time, the company needs to keep communicating its progress. Otherwise, the activist may take credit for every improvement, even when the work began well before the campaign.

The practical lesson is to use the available runway by documenting concerns, strengthening shareholder relationships and building the company's narrative before someone else defines the story.

Closing the Valuation Gap Requires Holding Both Truths

One of the most difficult positions for an IRO is standing between a management team focused on long-term potential and a market focused on what can be demonstrated over the next several quarters.

Zhurba argued that there is often truth on both sides. Management may have a clear view of where the business is heading over the next five to ten years, while investors remain unconvinced because the evidence has not yet appeared or their investment horizon is shorter.

For conversations with leadership, Zhurba recommended bringing verbatim feedback from perception studies. Exact comments from investors and analysts can help remove the personal dimension from a difficult discussion. This gives management evidence of how the market currently sees the business.

On the investor side, she stressed the importance of avoiding overpromising.

"One miss destroys more credibility than a year of good calls." - Irina Zhurba

Callow added that the first step is identifying the actual cause of the valuation gap. It may be a misunderstanding, a risk the market has priced differently or a technology investors do not yet appreciate. Once the source is understood, the company can address it through its communications or a larger event such as a capital markets day.

He also warned against cutting off a negative analyst. A well-known bear who changes their position can carry more weight than someone who was already positive. The voices that challenge the company may be the ones most worth engaging.

Build an Executive Voice Before You Need It

Social media can give companies a direct way to reach investors during periods of uncertainty, but the panel agreed that it only works when credibility has already been established.

If a CEO or CFO has never posted, commented or spoken publicly, appearing online for the first time during an activist campaign can feel defensive. Their voice needs to be established well before a crisis begins.

Zhurba recommended working with corporate communications to define the topics each executive can credibly own, then creating an ongoing pipeline of LinkedIn posts, interviews, articles and podcasts. Over time, that presence can become an important communication asset.

Callow agreed that authenticity is essential. He also stressed that formal disclosure must come first. Once regulatory requirements have been met, established social channels can extend those messages to an audience that is already listening.

Preparation Cannot Prevent Every Surprise

The panellists' stories showed how quickly a carefully prepared narrative can unravel.

Zhurba recalled a CEO informing the supervisory board the night before full-year results that he was stepping down. When the resignation and results were announced almost simultaneously, the market immediately questioned whether an accounting issue or problem with the numbers had triggered the departure. The share price fell sharply and the IR team spent days trying to contain the reaction.

Looking back, she would have organized a roundtable with sell-side analysts and key investors sooner. Those relationships can create a channel for correcting a misunderstanding before it spreads further.

Vilela shared an experience with a company facing financial challenges. During a meeting with its largest shareholder, the CEO focused on the next generation of its technology while the investor wanted to discuss immediate concerns about cash. The conversation deteriorated quickly. It reinforced for her how important it is to prepare management for difficult meetings and ensure the message addresses the concerns investors are bringing into the room.

Callow described an analyst trip that ended successfully, only for the company to announce a profit warning the following morning. Analysts who had spent the evening writing positive notes felt blindsided and the company's credibility suffered.

Across each example, the market's reaction was shaped by the sequence of events and the expectations created beforehand.

Credibility Includes Knowing When to Say “I Don't Know”

The closing confessions focused on the lessons the panellists continue to carry with them.

Zhurba advised teams adjusting guidance to “cut it once and cut it well.” Repeated downward revisions can prolong uncertainty and make credibility much harder to rebuild. She also warned against holding a capital markets day when a guidance adjustment may be approaching, based on an experience that took years to recover from.

Vilela reflected on a period early in her career when she reduced investor engagement because the company was struggling. She would now do the opposite. Difficult periods require continued communication and a willingness to have uncomfortable conversations. They also require IROs to manage the expectations of the CEO and CFO while recognizing the pressure those leaders may be under.

Callow's lesson came from giving a journalist the wrong figure early in his financial communications career. Under pressure to answer quickly, he confused the company's market capitalization with the amount raised in an IPO.

"If you don't know something, don't be afraid to say, 'I don't know.'" - Geoff Callow

An IRO is expected to understand the business, its strategy and its key financial drivers. For a specific historical figure, checking the source is the better choice. Saying that you will confirm the number and follow up demonstrates sound judgment. Giving the wrong answer can damage the trust that makes future conversations possible.

Looking Ahead

The strongest teams prepare before volatility arrives. They understand their shareholder base, watch for changes in tone and behaviour, bring market evidence into executive conversations and establish communication channels long before a crisis.

Technology can strengthen that preparation. AI and connected intelligence can bring ownership data, analyst feedback, engagement trends and other market signals together more quickly, reducing the time spent manually assembling information when the pressure is highest. That gives IROs more time to focus on the work that still depends on human judgment: understanding the question behind the question, advising leadership and maintaining the relationships that shape market confidence.

As Stanton summarized at the close of the session, the goal is to get the facts before forming an opinion, hold both management's and the market's truths until the gap closes and guard credibility as the one asset an IRO cannot afford to lose.

If you missed the session, watch Confessions of an IRO: Episode 3 to hear the full conversation and the real stories behind these lessons