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Last update: 23/03/2023
Over the course of the year, companies that are listed on the stock exchange hold several events aimed at their investors. One that has gathered momentum in recent years is an Investor Day. Perhaps you've already heard of it, however do you know exactly what it entails, why it is held and why it is important?
The main events that publicly traded companies hold for their shareholders and investors are the Annual General Meeting, Earnings Presentation, and Investor Day. An Investor Day is an event where the company's senior management (chairman, chief executive officer and chief financial officer) meets with its main investors. It is attended by protagonists such as fixed income investors, variable income investors, rating agencies and analysts.
The company's objectives and strategic plans for the coming years are announced at the event. These types of events are becoming increasingly important for companies listed on the stock exchange as they reinforce communication and strengthen the relationship with shareholders and investors.
An Investor Day is also ideal for fostering ESG criteria – particularly in relation to the last letter in the acronym, 'G', which represents 'good governance'. By offering an improved knowledge of the company, it helps build investor confidence and allows them to make informed decisions.
Investor Day different to a Annual General Meeting?
They are both key events in a publicly traded company’s agenda, but they are very different. An Investor Day is geared towards providing investors and shareholders with information on strategic matters for the company. The Annual General Meeting is the company's supreme decision-making body and it has the power to adopt any type of agreement in relation to the company.
Among others, the Annual General Meeting has the power to: approve the annual financial statements and management report, allocate profits from the previous financial year, appoint, reelect or ratify the members of the board of directors, and modify bylaws. Plus, the Ordinary General Shareholders' Meeting is held with at least some guaranteed regularity as it must be held within the first six months of each financial year.
An Investor Day, on the other hand, isn't held with any set frequency. This means that the company is able to decide when it wants to host the event based on market etiquette.