Support for two shareholder proposals at Monster Beverage

Norges Bank Investment Management will vote in favour of shareholder proposals related to proxy access and sustainability reporting at the annual general meeting of Monster Beverage Corporation.

16 June 2017

Proxy access

We will support the shareholder resolution asking for adoption of a proxy access right.

Our rationale

We support proxy access rights at US listed companies when applied with reasonable thresholds that enable shareholders to utilise the rights effectively.

We support the introduction of holding periods of up to three years and holding requirements of up to three percent, and we will accept a limit on the number of board seats to be affected by proxy access candidates if at least two seats or 20 percent of the board can be filled by such candidates.

We consider that proxy access provides shareholders with a reasonable right to propose board candidates, provides greater director and board accountability and can provide a safeguard if boards fail.

Sustainability reporting

We will support the shareholder resolution asking for a report on sustainability, including water risks.

Our rationale

We believe that companies should disclose their water management strategy, challenges, and opportunities, reflecting both short-term and long-term investor concerns.

We believe that companies should, when relevant, develop a framework to monitor and set relevant benchmarks, key performance indicators and targets, for direct and indirect company water consumption, conservation and reuse, waste water discharge, and environmental quality. They should report on progress against such targets.

We believe that companies should also report relevant physical, regulatory or reputational water risks and responses to these, at the appropriate level of detail.

Where material risks and opportunities exist, companies should strive to report the above data for supply chains and products and services.

Monster Beverage Corporation resolutions

 NUMBER PROPOSAL MANAGEMENT RECOMMENDATION VOTING INTENTION
Management proposals
 NUMBER1.1PROPOSALElect Director Rodney C. SacksMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.2PROPOSALElect Director Hilton H. SchlosbergMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.3PROPOSALElect Director Mark J. HallMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.4PROPOSALElect Director Norman C. EpsteinMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.5PROPOSALElect Director Gary P. FayardMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.6PROPOSALElect Director Benjamin M. PolkMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.7PROPOSALElect Director Sydney SelatiMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.8PROPOSALElect Director Harold C. Taber, Jr.MANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.9PROPOSALElect Director Kathy N. WallerMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.10PROPOSALElect Director Mark S. VidergauzMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER2PROPOSALRatify Deloitte & Touche LLP as AuditorsMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER3PROPOSALApprove Non-Employee Director Omnibus Stock PlanMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER4PROPOSALAdvisory Vote to Ratify Named Executive Officers CompensationMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER5PROPOSALAdvisory Vote on Say on Pay FrequencyMANAGEMENT RECOMMENDATIONOne YearVOTING INTENTIONOne Year
Shareholder proposals
 NUMBER6PROPOSALAdopt Proxy Access RightMANAGEMENT RECOMMENDATIONAgainstVOTING INTENTIONFor
 NUMBER7PROPOSALReport on Sustainability, Including Water RisksMANAGEMENT RECOMMENDATIONAgainstVOTING INTENTIONFor

Important legal notice

Norges Bank Investment Management’s approach to responsible investing includes disclosing our voting decisions, in some cases in advance of the relevant meeting. This is only intended to provide information and is not solicitation or encouragement as to how others should vote. This disclosure is not investment research, advice or recommendation. Norges Bank Investment Management’s voting intention is an internal decision and has not been agreed with other shareholders. This disclosure reflects Norges Bank Investment Management’s intention as at the date of publication but such intention is subject to change at our discretion. Norges Bank Investment Management is not subject to any prohibition on dealing after the publication of this disclosure. Norges Bank Investment Management’s holdings available for voting from time to time may differ from those set out in lists of holdings as of year-end.