February 7, 2023
ISS: More Updates to “Equity Compensation Plan” FAQs
Last week, ISS further updated its “Equity Compensation Plans” FAQs – to provide more info about their burn rate calculation. Question 15 now includes this additional color:
The VABR calculation values grants in each fiscal year separately, based on the applicable QDD date and associated QDD data in that fiscal year. In calculating grant valuations in a specific fiscal year, the “stock price” in the formula above (both in the numerator and the denominator) refers to the 200-day average stock price as of the applicable QDD date in that fiscal year. The option valuation inputs are similarly as of the applicable QDD date in that fiscal year.
This new document adds to the FAQs that John blogged about last month. The updated ISS FAQs document highlights all year-over-year changes. We’ll be posting it in our “Proxy Advisors” Practice Area.
– Liz Dunshee