In January, Bevin Wirzba joined ARC Resources, Ltd. as Senior Vice President of Business Development and Capital Markets – a little more than six months before well-known IRO David Carey was scheduled to retire. Carey was such an iconic figure in the IR field that his name is used to illustrate how to search the member directory on the CIRI website.
Fortunately, Wirzba, who worked most recently in investment banking at RBC Capital Markets and in that capacity traveled with ARC’s CEO Myron Stadnyk to meet investors, had forged some of the necessary relationships to step into Carey’s admittedly large shoes. “David and I both have a similar DNA,” says Wirzba. “We both had a capital markets background and a technical background, too, with a deep knowledge of the industry.” He continues: “And when investors connect with either of us, they had someone who sits at the senior leadership table.”
“It was like a Swiss watch, how David ran things. I want all that to continue,” says Wirzba. Above all, he plans to follow in Carey’s footsteps by emphasizing transparent communications and by sharing insights into the business with analysts and investors.
Carey’s retirement was just one of the seismic changes that recently hit Canadian IR departments. This included the late April retirement of Rudy Sankovic, Senior Vice President for Investor Relations at TD Bank Group; his successor is Gillian Manning. Meanwhile, Greg Waller, Vice President of Investor Relations at Teck Resources, Ltd., announced his plans to retire in May 2017, and the company is in the process of locating a replacement.
Although succeeding a legend may be a daunting prospect, the potential rewards are great, says Kelly Blair, Senior Partner at the Toronto office of Caldwell Partners, a North American recruitment agency. “This is a huge opportunity to leverage existing relationships and be successful. I think it’s a really great scenario for the right candidate.”
Building Relationships
Blair says that IR professionals who are at the top tier in their organizations often have close ties to the CEO and Board, as well as to the sell-side and institutional and retail investors. Thus, she maintains, when finding a successor for a highly regarded IRO, “the biggest challenge would be how to replace all those relationships. If you are going to be the step-up candidate, it’s important to demonstrate relationship-building skills.”
Relationships are, of course, generally easier to build for an IRO who is promoted from within an organization. That was the case for Paul Butcher, Vice President of Investor Relations at CN since late July, who assumed the reins from two IR paragons: Robert Noorigian and Janet Drysdale.
After spending seven years in CN’s IR department and working first under Noorigian and then Drysdale (who is now CN’s Vice President of Corporate Development), Butcher has a unique perspective. “Bob was a legend and I learned many good things from him,” says Butcher. “Janet did a tremendous job of bringing some different things from an IR perspective, and I learned from her, too.”
Specifically, Butcher notes that after Noorigian retired, Drysdale began visiting Europe each year and courting investors there. “European investors won’t buy into the stock right away. It takes a bit of back and forth for a few years, and we’re now seeing that pay off.” He also points out that Drysdale had to contend with increased competition from CP (Canadian Pacific Railway), which has been undergoing a turnaround. “Both companies are trying to attract investors that are very similar. So we’ve got to bring in new blood, new shareholders, and we have to retain our existing shareholders,” he says.
Butcher is also applying his own priorities to the job: “I know how people from the outside see the company, and so number one for me is being as responsive as I can to investor requests or concerns.”
For Wirzba, who came from outside ARC, the challenges are slightly different. He knows many of ARC’s investors from his six years at RBC, but IR is a new discipline for him.
Wirzba says that the six month overlap with Carey helped him foster strong IR relationships: “They saw both David and me traveling on the road together and meeting investors.” Wirzba is convinced that this was “a great way of doing the hand-off.”
While Wirzba wants to make sure that ARC’s Swiss watch of an IR department continues to run smoothly, he also plans to build on and enhance Carey’s legacy. One goal is “to make our messaging as clear and useful as possible,” he says, noting that the recently completed CSR report is an example of how ARC will continue to strengthen communications over time.
Putting Your Stamp on the Role
When asked how a departing IRO might smooth the way for a successor, Shirley Chenier, who was Senior Director of Investor Relations at Bombardier, Inc. before her retirement in October 2015, said that continuity is important. “I left a team, including Yan Lapointe [Manager of Investor Relations] and so the memory stayed,” she says.
From what Chenier hears, her replacement – Patrick Ghoche – is making a raft of changes. Taking a very different course, she says, “is one way of filling the place for someone well liked like I was.” Chenier continues: “It’s no longer my department and I do understand that he probably wants to break away from what used to be to put his stamp on everything.”
Although the question of how dramatically to change course may depend upon the organization and the individuals involved, some departure from the past is probably wise.
“When you’re succeeding an icon, you have to continue that legacy, but also bring something else to the table,” says Caldwell’s Blair. “Practices might have been great for the day, but it may be important to bring in social media expertise or other ways of communicating,” she says. “I tell candidates: ‘We’re not talking about John’s job here. You want to find out what’s the mandate for the future. What do I need to do to be vice president of IR today and going forward?’”
Wirzba is also intent on doing more than replicating the glories of the past. “David was a consummate professional. Am I trying to fill his shoes? No,” he concludes. “I’m going to continue the journey, or run the rest of the marathon, now that he’s passed the baton.”