Wall Street analysts are becoming increasingly aware of nonverbal cues gleaned from senior executives during conference calls and face-to-face meetings, says a Denver management psychologist who will discuss the topic today.
Peter Spanberger, a Ph.D. psychologist and Denver management consultant, says investment firms are beginning to train analysts to recognize and interpret different “nonverbal” forms of communication.
Some firms have even hired former FBI psychologists to help train analysts, he said.
As a result, executive teams must polish their presentation skills to avoid appearing untrustworthy, disorganized or combative when meeting with analysts and potential clients.
“Executives reveal a lot more than they realize,” said Spanberger, 61, head of PGS Partners.
Spanberger will discuss that during a luncheon hosted by the Rocky Mountain Chapter of the National Investor Relations Institute, or NIRI. It is scheduled for 11:30 a.m. at the Westin Tabor Center, 1672 Lawrence St.
According to Spanberger, common missteps include:
A chief executive fielding an operational or tactical question that would be more appropriately answered by the head of a division. That indicates to analysts that the CEO lacks confidence in the company’s executive team.
Chief financial officers “getting on a roll” and dominating the conversation with analysts.
Executives taking an overly friendly or combative tone instead of being collaborative.
Executives becoming nervous or upset with analysts’ questions about a relatively small part of the company’s business.
“Analysts are hungry to find holes in a company,” said Joanna Starek, a management psychologist for the Denver office of RHR International. “The way you say something is almost as important as what you say.”
Click here for information about the event – www.rockyniri.org.
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com.
