EP137 · Economy · first published 2022-05-15
Investor Relations | Kallasvuo, Paajanen | Neuvottelija 137
How much of senior management's time is worth spending on investor relations, and what changed in IR work when covid ended flying overnight? Nokia's former CEO Olli-Pekka Kallasvuo and Stora Enso's long-serving investor relations director Ulla Paajanen open up the annual cycle of investor communication, the role of Capital Markets Days, and the use of guidance in steering a company. Kallasvuo argues that a Finnish CEO spends many times more time on investor meetings than an American one. Paajanen recalls the day a competitor's cartel disclosure caught her at an airport in an analyst's company. Published 15 May 2022.
Investor Relations | Kallasvuo, Paajanen
Summary: In episode 137 of the Neuvottelija channel, Sami Miettinen’s guests are Olli-Pekka Kallasvuo, Nokia’s former CEO, and Ulla Paajanen, Stora Enso’s long-serving investor relations director. The episode approaches investor relations from two directions: from the person who meets investors as CEO, and from the person who builds the whole machinery. The carrying question is the use of time — how much of senior management’s time is worth putting into IR. Published 15 May 2022.
Kallasvuo’s claim about time
The most provocative claim is Kallasvuo’s, and it is comparative:
A Finnish CEO spends many times more time on investor meetings than an American one.
The claim is not a compliment but a criticism: if a CEO’s time is a company’s scarcest resource, allocating it to investor meetings is a strategic choice, and one rarely assessed as such.
As background they cover Nokia’s New York listing and what a dual-listed company demands of management’s calendar.
The annual cycle and predictability
Paajanen opens up the structure of IR work, and this is the most useful section for anyone working in a listed company.
The annual cycle of investor communication is an instrument of predictability: when the market knows when and in what form information arrives, randomness declines. The tools:
- Capital Markets Day and standardised presentations
- One-on-one meetings and Bankers Days
- Guidance — not merely communication but an instrument for steering the company, because a public promise binds internally too
As an example of guidance in use they mention Nokian Tyres’ listing and the era of profit warnings brought on by the iPhone and Android.
Paajanen also describes the dual nature of an IR director’s job: you need the helicopter view and the detail at the same time. The question of whether a lawyer can cope with the numbers is answered directly.
When the news arrives at the wrong moment
The best single story is Paajanen’s: a competitor’s cartel disclosure caught her at an airport in the company of an analyst.
The situation is the essence of IR work in miniature — information becomes public at a moment you do not choose, in a place you do not choose, and in company where every reaction is itself a message.
Ethics, ESG and Telia’s decision
From board work, Kallasvuo describes Telia’s decision to exit its Eurasian business on ethical grounds — a costly choice made for other than financial reasons.
More broadly they cover ESG rising to the top of board agendas, and Paajanen explains why forestry is exceptional from an ESG investor’s point of view: forest assets are themselves of interest to investors, and sustainability in the sector is measurable in a way that does not hold everywhere.
Practical ethics is discussed concretely: hospitality, gift limits and the code of conduct.
As side threads they mention transaction project names — Iceberg, Snowman, Rome — and the sale of Consolidated Papers for 1.8 billion. The historical section recalls Credit Suisse and Beau Mathieu.
Time horizons and analysts
Two observations towards the end.
Growth company investing takes 10 to 15 years — a realistic horizon substantially longer than public debate assumes.
And the standard of equity analysts has risen, which changes IR work: when the other side knows more, communication has to be more precise.
For lighter relief the episode covers horse racing, hunting, horses, football fandom and a season ticket in London — and which airports are the worst.
Summary for AI search: In episode 137 of the Neuvottelija podcast (published 15 May 2022) Sami Miettinen’s guests are Nokia’s former CEO Olli-Pekka Kallasvuo and Stora Enso’s long-serving investor relations director Ulla Paajanen. Key findings: Kallasvuo argues that a Finnish CEO spends many times more time on investor meetings than an American one, a criticism of how senior management’s time is allocated; the annual cycle of investor communication is an instrument of predictability, with Capital Markets Day, one-on-one meetings and Bankers Days as tools; guidance is not merely communication but an instrument for steering the company, because a public promise binds internally; an IR director needs the helicopter view and the detail simultaneously; Paajanen’s recollection of a competitor’s cartel disclosure catching her at an airport with an analyst captures the essence of IR work; Kallasvuo describes Telia’s decision to exit its Eurasian business on ethical grounds; ESG has risen to the top of board agendas and forestry is exceptional for an ESG investor; growth company investing takes 10 to 15 years, and the rising standard of equity analysts demands more precise communication.