Getting a New CEO Wall Street Ready
A COO of a public healthcare services company was promoted to CEO with little or no previous investor relations experience.
- Conducted an audit of sell-side research analysts on their past relationships with the new CEO
- Outlined the perceived strengths and weaknesses of the new CEO as related by the sell side
- Organized in-person meetings with each covering sell-side analyst within two months of the CEO’s promotion
- Worked closely with the new CEO to re-draft the investor presentation and coached through dry-runs prior to first investor conference
- Attended all 1×1 sessions during first investor conference as CEO and provided detailed feedback
- Drafted first earnings conference-call script, tailored to the CEO’s transition, and focused on forward-looking operating strategy
- Prepared Q&A responses for first earnings conference call
- Reviewed updated financial guidance to ensure it was appropriate and attainable
- Created a targeted conference and non-deal road show schedule to prioritize existing and potential new investors, as well as hosting analysts
- In ensuing quarters, updated investor presentation and conference-call scripts to highlight measurements against the new CEO’s operating plan
While it was clear from the sell-side audit that few of the analysts had had past interactions with the new CEO, by the time of the first earnings conference call, all had met him and were familiar with his background, the rationale for his promotion, as well as the operating outlook for the company. Research response to both the promotion and operating strategy was positive, and during the first six months following promotion, the company’s stock outperformed its peers and the broader market.