Now that many senior IROs have attained a ‘seat at the table’, they face fresh challenges, including navigating the triumphs – and trials – of a far closer working relationship with the CEO. John Paul Macdonald, Senior Vice President, Public Affairs at Bombardier Inc., says that all of the CEOs he has worked with have been extremely smart. “More often than not, though, really brilliant people lack people skills,” he says, and the stresses of the job can make CEOs irascible. His advice? Know your stuff, gain the financial literacy necessary to be credible, and present your views honestly but respectfully.

Although IROs can take steps to foster a better working relationship with the CEO, sometimes the chemistry is so flawed that it makes the job nearly impossible. Janet Craig, Vice President, Investor Relations, at Nortel Networks Corp., says that her only not-so-positive relationship with the six CEOs she has worked under foundered because of “philosophical and personal” differences. “I did the work I needed to do, but ultimately I wasn't as effective because honestly, I think that the CEO didn't like me that much,” says Craig. After a while, she found a new position. “I probably would have been fired if I hadn't left,” she adds.

The Right Chemistry
Naturally, every IRO identifies different make-or-break issues for working with a chief executive. “Before I go into a company, I always have a heart-to-heart talk with the CEO to determine if we have the same views of disclosure,” says Naomi Nemeth, Vice President,

Investor Relations, at Homeland Energy. She advocates a “very straightforward discussion of specific scenarios” because she wants to know whether the CEO plays by the book (her philosophy), or likes to push the disclosure envelope. Nemeth has turned down jobs because she didn't agree with the CEO on this critical point.

The initial interview presents a terrific opportunity to gauge whether the IRO/CEO relationship has the potential to work. How much time the CEO spends with a candidate is often an indication of the amount of access you'll later enjoy. Karen Attwell, who founded Attwell Communications in Calgary after a 10-year career in IR, puts it this way: “If the organization doesn't feel it's important for you to meet the CEO, it may not be the senior job they're presenting.” Having the right chemistry with the CEO isn't the same as being friends, maintains Macdonald. On the contrary, he believes that a good IRO needs the detachment to listen to analysts, investors, and journalists – and then explain their various points of view to management.

Macdonald advises new IROs to develop a thick skin. “If the CEO reads something he doesn't like and then lays into you, you have to have the patience and empathy to realize where it's coming from,” he says. Instead of feeling defenseless when tempers flare, IROs should consider the pressures CEOs face and “put on flak vests when things are going to be flying,” he jokes.