Support for two shareholder proposals at Monster Beverage

16 June 2017

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.

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
1.1 Elect Director Rodney C. Sacks For For
1.2 Elect Director Hilton H. Schlosberg For For
1.3 Elect Director Mark J. Hall For For
1.4 Elect Director Norman C. Epstein For For
1.5 Elect Director Gary P. Fayard For For
1.6 Elect Director Benjamin M. Polk For For
1.7 Elect Director Sydney Selati For For
1.8 Elect Director Harold C. Taber, Jr. For For
1.9 Elect Director Kathy N. Waller For For
1.10 Elect Director Mark S. Vidergauz For For
2 Ratify Deloitte & Touche LLP as Auditors For For
3 Approve Non-Employee Director Omnibus Stock Plan For For
4 Advisory Vote to Ratify Named Executive Officers Compensation For For
5 Advisory Vote on Say on Pay Frequency One Year One Year
Shareholder proposals
6 Adopt Proxy Access Right Against For
7 Report on Sustainability, Including Water Risks Against For
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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.