Investor relations (IR) is a unique role in the finance department of public and sometimes private companies, however most people don’t know how to get a job in investor relations. It can be a highly rewarding career for individuals who have a background in finance, corporate law, or communications.
The job market for skilled and experienced IROs can be quite competitive. In many cases, there is more demand for Investor Relations officers than there are practitioners. As a result some companies may find themselves in the position of promoting and training internal candidates.
This article will outline the skills required to succeed in investor relations, professional certifications to help land a role, earning potential for investor relations, as well as tips for how you can make investor relations the next step up on the corporate ladder.
Skills Required to Succeed in Investor Relations
Due to the complex legal and financial regulations of the industry, most investor relations officers (IROs) hold at least a Bachelors degree. The most common areas of study are in accounting, communication, economics, law, and finance. An MBA is not a requirement to work in investor relations, but it is certainly an asset.
Typically, an investor relations officer already has a few years of work experience, usually from the finance or accounting department, but occasionally IROs have a background in law, sales, or public relations. Many IROs have held other positions in corporate finance or capital markets. Accountants, sell side analysts, investment bankers, corporate consultants, and global economists represent some of the most common precursors to employment in IR.
Certifications and Professional Associations
Because investor relations is a niche within the finance industry, it’s always possible that there’s only one IR professional in a company. As such, it makes sense to join professional associations to keep abreast of best practices and to network with others in the industry. Some professional certifications of note include:
Earning Potential For Investor Relations Professionals
A 2021 study conducted by IR Magazine found that the median salary for IROs globally ranged between $75,000 to $99,999 USD. Additionally, up to 85% reported taking home some kind of bonus pay. It is important to note that salaries and compensation can vary wildly across markets, with North American IROs reporting 2-3x higher salaries than their peers in Asia.
Similarly, salaries and compensation plans will vary alongside the size of a company, normally scaling upwards with market cap.
Career Trajectory For Investor Relations
Investor relations officers generally have good opportunities for career development. Their proximity to key executives puts IROs on the path to advance into higher positions under the CFO or CEO with the potential to eventually earn a seat on the C-Suite. IROs with a strong background in corporate finance and an analytical mindset are well equipped to move up the corporate ladder.
Conclusion
To succeed in investor relations, you need a good balance of mathematical and soft skills. With the right education and experience, investor relations can be a highly lucrative career with good potential for promotion. Now that you know how to get a job in investor relations, you may be interested in future trends for the IR profession.