Setting KPIs in Investor Relations
A practical framework for defining goals and measuring what matters
This article is the third in a five-part series that explores key aspects of the investor relations function, including hosting earnings calls, investor targeting and outreach, IR websites, setting goals, and navigating ESG topics. The aim of this series is to offer practical insights into how various aspects of investor relations are managed across the globe, with some innovative ideas that go beyond the basics.
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I remember my first (and only) interview for a head of investor relations role. At the end of the final meeting, I asked the CFO what his expectations were. Without hesitation, he smiled and said, “Double the share price, of course — isn’t that the point of investor relations?”
It’s a line that stayed with me after the interview. I was twenty-five at the time and spent days wondering how I was meant to “double the share price”, and how little of that I could actually influence despite my best efforts.
Years later, I listened to a presentation by the IR officer of a large pharma company who explained how her team set goals. Every behaviour, conference attendance, investor calls, targeting, disclosure, presentation format, was planned meticulously in advance, executed, and reviewed in what seemed to be a continuous feedback loop. This internal DNA of continuous experimentation and improvement is one of the best arguments for having clear KPIs.
KPIs in investor relations are fundamentally about alignment with management and the board. They connect the day-to-day work of the IR team with the broader goals set by management, whether that’s expanding international ownership, improving valuation, strengthening liquidity, or deepening relationships with long-term shareholders. They also provide a map that shows where progress is being made and where attention is needed. Finally, they also bring accountability: they show whether resources such as time, budget, travel, and management attention are being spent effectively.
In practice, many IR teams operate without formal KPIs, and that’s understandable. Setting them is hard, largely because of several structural challenges. Key outcomes such as share price, sell-side coverage, or trading liquidity often depend on factors the IR team cannot control. Many aspects of performance, credibility, narrative clarity, and relationship quality, are qualitative and difficult to quantify. The time horizon adds another layer of complexity: changes in shareholder base quality or valuation re-rating can take years to materialise, yet most KPIs are set on an annual basis. Finally, reliable data on investor engagement, perception, or ownership is often fragmented, delayed, or incomplete, making consistent measurement even harder.
Still, the process of defining KPIs, even imperfect ones, forces focus, discipline, and internal discussions that otherwise might not have happened.
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A Framework for Thinking About IR KPIs
I have recently surveyed company IR departments and found that KPIs in our field tend to fall into four broad categories: market engagement, shareholder base development, perception and communication, and internal effectiveness.
1. Market Engagement
These metrics measure how actively the IR team builds and expands investor engagement. Examples include:
Proactive KPIs (IR-driven effort)
• Number of investor meetings initiated directly by IR (vs broker-led).
• Conversion rate: percentage of targeted or met investors who became shareholders.
• Shareholder and peerholder outreach coverage (% of relevant universe engaged).
Reactive KPIs (market-driven engagement)
• Total number of investor meetings (by region, investor type, AUM tier).
• Ratio of new vs repeat investors.
• Number of inbound meeting requests.
Sell-side KPIs
• Number of active analysts and changes in recommendation or rating.
• Participation in broker conferences, NDRs, and virtual events.
2. Shareholder Base Development
These metrics assess how the shareholder base is evolving and whether IR efforts are influencing it. Examples include:
Structure and Composition
• Institutional vs retail ownership (% and trend).
• Active vs passive split.
• Top-20 shareholder concentration and diversification range.
Behaviour and Stability
• Shareholder turnover (% change quarter-to-quarter).
• Percentage of long-term holders (holding period >12 months).
• Volatility of top-holder positions (quarterly churn).
• Conversion or increased holdings among engaged investors.
Quality and Strategic Fit
• Peerholder representation.
• Alignment with the company’s strategic profile.
• Geographic and investor-type mix (HF, LO, Quant, etc.).
3. Perception and Communication
These metrics assess how well the IR team communicates and processes feedback from the market.
Market Understanding & Sentiment
“Is our investment case well understood?”
• Investor perception survey results — quantitative ratings and qualitative feedback.
• Sentiment trends over time (improving, stable, declining).
Communication Reach & Engagement
“How effectively do we communicate our story?”
• IR website performance: visitors, time per visit, downloads.
• Open and click-through rates from investor mailings.
• Engagement during earnings calls (questions, analyst participation, follow-ups).
• Topics discussed in meetings (changes QoQ, YoY).
4. Internal Effectiveness
These metrics measure how efficiently the IR function operates and creates value both internally and externally.
Internal (managing up)
• Timeliness and quality of internal reporting (management satisfaction score).
• Number of strategic recommendations delivered to management based on investor insight.
• Adherence to reporting timelines for board updates and roadshow summaries.
External
• Responsiveness: average time to reply to investor or analyst queries.
• Use of AI tools to improve productivity or insight quality.
• Timeliness of results publication and updates.
There are, of course, other KPIs that fall outside these main categories. I’ve come across several in surveys and conversations, such as how IR teams use AI, the pursuit of awards, or inclusion in key indices.
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Some Parting Reflections
I recently had the opportunity to take part in a KPI panel with TUYID, where we explored how different companies approach this topic in practice. The discussion concluded with a few wise reminders:
• Focus on quality, not quantity. For instance, consider what matters isn’t how many analysts cover you, but how many actually publish thoughtful research.
• Start small. If there are no KPIs in place, begin with just a few meaningful measures (“less is more” mentality) that reflect your priorities. Build consistency first, then expand as you learn what really drives results.
• Let KPIs evolve. Markets, disclosure standards, and corporate priorities change over time. Refresh and adapt your metrics regularly to keep them relevant.
• Don’t forget to celebrate progress. Helin from Yapi Kredi reminded us that numbers are only one side of the story. Recognise achievements, both individual and collective, they sustain energy, pride, and motivation within the team.
Reference Presentation:
Setting KPIS for IR Teams. TUYID presentation, 6 November 2025