New 2014 Burn Rate Calculator Posted

Since ISS released its updated Burn Rate Caps table for 2014 on December 19, 2013, I have updated the Burn Rate Calculator to reflect the caps for 2014.  The calculator will enable you to calculate your ISS burn rate and traditional run rate for 2014 with just a few inputs.  The Burn Rate Calculator is kept under Reference Materials / Excel Tools and can be accessed at:

http://edwardhauder.com/reference-materials/excel-tools/brc2014/

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2013 ISS Burn Rate Calculator Posted

I have just posted my 2013 ISS Burn Rate Calculator.  You simply have to add n a few details about your company, its equity grants and weighted average common shares outstanding for the past 3 years and it will calculate your ISS Burn Rate for 2013.  You will also need to know your volatility and 4-digit GICS code to get valid information about the ISS Burn Rate Cap that applies to your company for 2013.

Right click the link below and save the file to your computer and then enter the requested data and the 2013 ISS Burn Rate will be calculated.

2013 Burn Rate Calculator

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ISS Burn Rate Caps for 2013

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).

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ISS Issues 2012 Burn Rate Caps

ISS recently released its 2012 Burn Rate Caps as part of its 2012 U.S. Proxy Voting Summary Guidelines (December 19, 2011), p. 44, available at http://www.issgovernance.com/files/2012USSummaryGuidelines.pdf

The presentation below includes these burn rate caps as well as a chart looking at how the caps have changed from 2009 through 2012.

 Update: After posting this, I discovered that with its December 1, 2011 quarterly download, ISS Research is now using a 3-year observation period for stock price volatility in both the Shareholder Value Transfer (SVT) and burn rate tests. The 200-day annualized volatility is no longer being used.

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