January 3, 2013
ISS Burn Rate Caps for 2013
– Broc Romanek, CompensationStandards.com
In his blog, Ed Hauder of Exequity describes the new burn rate caps – and he includes this PowerPoint comparing the rates over the past five years. Here is an excerpt from the blog:
Interestingly, there are no instances for Russell 3000 GICS groups where the ISS 2 percentage point governor limited an increase/decrease from last year’s ISS burn rate caps. This is the first time since the governor was introduced that this happened. Note though that the governor did apply to a few Non-Russell 3000 company GICS groups.
Also, on an aggregate basis, the burn rate caps didn’t change all that much and remained flat (aggregate total -0.76% decline in burn rate caps for 2013 versus a 6.21% aggregate increase in 2012, a 29.74% aggregate increase in 2011, and a -15.53% aggregate decline in 2010).