ISS has released updated Burn Rate Caps as part of its policy updates. The new Burn Rate Caps appear in the revised Setting the Bar presentation circulated by ISS Corporate Services for 2013. These Burn Rate Caps will apply to all shareholder meetings on or after February 1, 2013 and ISS will update them in late 2013 for meetings after February 1, 2014.
The presentation below includes these burn rate caps as well as a chart looking at how the caps have changed from 2009 through 2013.
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).