Form 4: Monster Beverage CEO's Indirect Holdings Update

Sentiment:

Insider Ownership Report 16 December 2025 5:54 PM

Monster Beverage Vice Chairman and CEO Hilton H. Schlosberg updated his beneficial ownership, reflecting indirect share sales by affiliated partnerships and detailing extensive stock and option holdings.

Summary

Hilton H. Schlosberg, Vice Chairman and CEO of Monster Beverage Corp (MNST), filed a Form 4 reporting his beneficial ownership of common stock and derivative securities as of December 12, 2025.
Schlosberg directly owns 2,338,500 shares of Monster Beverage Common Stock.
He indirectly owns 70,988,309 shares of Common Stock through various limited partnerships: Brandon Limited Partnership No. 1 (11,291,136 shares), Brandon Limited Partnership No. 2 (58,773,888 shares), Hilrod Holdings XV, L.P. (276,109 shares), Hilrod Holdings XVIII, L.P. (360,948 shares), Hilrod Holdings XXIII, L.P. (0 shares), and Hilrod Holdings XXVI, L.P. (286,228 shares).
On December 12, 2025, other general partners of Hilrod Holdings XVIII, L.P., Hilrod Holdings XXIII, L.P., and Hilrod Holdings XXVI, L.P. sold shares held by these entities, resulting in updated aggregate holdings.
Schlosberg holds employee stock options to buy a total of 3,167,100 shares of Common Stock, with exercise prices ranging from $23.14 to $60.30 and expiration dates extending up to March 14, 2035.
A significant portion of these employee stock options are currently vested, while others have vesting schedules extending to March 14, 2028.
He also holds 125,901 Restricted Stock Units (RSUs) granted under the Monster Beverage Corporation 2020 Omnibus Incentive Plan, which represent a contingent right to receive one share of common stock per unit upon vesting.
These RSUs have vesting schedules with installments occurring on March 14, 2026, March 14, 2027, and March 14, 2028.
Schlosberg disclaims beneficial ownership of the indirectly held securities except to the extent of his pecuniary interest therein.

Sentiment

Score: 6

Explanation: The filing is largely neutral, reporting routine insider holdings and a past transaction. The indirect sales by affiliated partnerships could be seen as a slight negative, but the overall significant executive ownership remains a positive for alignment.

Positives

The Vice Chairman and CEO maintains significant direct and indirect equity holdings, aligning his interests with those of shareholders.
A substantial number of employee stock options are already vested, indicating potential future exercise and continued executive commitment to the company.
Ongoing vesting schedules for a large number of options and Restricted Stock Units provide long-term incentives for management performance and retention.

Negatives

Indirect sales of shares by other general partners of affiliated partnerships (Hilrod Holdings XVIII, L.P., Hilrod Holdings XXIII, L.P., and Hilrod Holdings XXVI, L.P.) on December 12, 2025, resulted in a reduction of aggregate holdings in these entities.

Risks

The reporting person disclaims beneficial ownership of indirectly held securities except to the extent of his pecuniary interest, which could imply less direct control or influence over those specific holdings.
Future sales by other general partners of the limited partnerships could further reduce the total indirect holdings associated with the executive.

Future Outlook

This Form 4 filing is a routine disclosure of insider transactions and holdings and does not contain forward-looking statements or guidance regarding the company's future operational or financial performance.

Industry Context

This Form 4 filing is a standard regulatory disclosure for executives of publicly traded companies, reflecting an executive's personal investment and compensation structure within the beverage industry. It provides insight into the executive's alignment with the company's performance but does not offer broader industry trends or competitive analysis.

Comparison to Industry Standards

This Form 4 filing is a standard disclosure of insider beneficial ownership, common across publicly traded companies. It does not provide specific data for direct comparison to industry peers or global benchmarks within the beverage sector. However, the significant level of executive ownership (both direct and indirect) is generally viewed positively as it aligns management's interests with shareholders, a common benchmark for good corporate governance.

Related Party Transactions

Sales of shares by other general partners of Hilrod Holdings XVIII, L.P., Hilrod Holdings XXIII, L.P., and Hilrod Holdings XXVI, L.P. on December 12, 2025. These are entities where the reporting person is also a general partner, making them related party dealings in the context of beneficial ownership.

Stakeholder Impact

Shareholders: The significant direct and indirect equity holdings by a key executive generally align management's interests with shareholders. The indirect sales by affiliated partnerships might be viewed with slight caution, but the overall ownership remains substantial.
Employees: The existence of employee stock options and restricted stock units indicates a compensation structure designed to incentivize long-term performance and retention.

Next Steps

Continued vesting of employee stock options and restricted stock units on specified future dates.
Potential future exercises of vested stock options by the reporting person.

Key Dates

Date	Description
12/12/2025	Date of earliest transaction; sales of shares by other general partners of Hilrod Holdings XVIII, L.P., Hilrod Holdings XXIII, L.P., and Hilrod Holdings XXVI, L.P. occurred, and the aggregate holdings of these entities were updated.
12/16/2025	Signature date of the Form 4 filing by Paul J. Dechary, attorney-in-fact.
03/14/2026	Vesting date for remaining 61,000 shares of $50.82 employee stock options, 51,167 shares of $60.30 employee stock options, one-third of $55.09 employee stock options, 22,534 Restricted Stock Units, 19,333 units of 38,667 Restricted Stock Units, and 21,567 units of 64,700 Restricted Stock Units.
03/14/2027	Vesting date for remaining 51,166 shares of $60.30 employee stock options, one-third of $55.09 employee stock options, 19,334 units of 38,667 Restricted Stock Units, and 21,567 units of 64,700 Restricted Stock Units. Also, expiration date for employee stock options with an exercise price of $23.14.
03/14/2028	Vesting date for the final one-third of $55.09 employee stock options and 21,566 units of 64,700 Restricted Stock Units. Also, expiration date for employee stock options with an exercise price of $29.37.
03/14/2029	Expiration date for employee stock options with an exercise price of $29.84.
03/13/2030	Expiration date for employee stock options with an exercise price of $31.20.
03/12/2031	Expiration date for employee stock options with an exercise price of $44.47.
03/14/2032	Expiration date for employee stock options with an exercise price of $36.62.
03/14/2033	Expiration date for employee stock options with an exercise price of $50.82.
03/14/2034	Expiration date for employee stock options with an exercise price of $60.30.
03/14/2035	Expiration date for employee stock options with an exercise price of $55.09.

Recommendation

hold

This Form 4 filing primarily details the beneficial ownership of Monster Beverage's Vice Chairman and CEO, Hilton H. Schlosberg, including direct shares, indirect holdings through partnerships, and various derivative securities. While there were indirect sales by other general partners of affiliated entities, the executive's overall substantial equity and option holdings demonstrate significant alignment with shareholder interests. The filing does not contain new operational or financial performance data to warrant a change in investment thesis, thus a 'hold' recommendation is appropriate, maintaining current positions based on broader company fundamentals.

Keywords

Monster Beverage, MNST, SEC Form 4, Insider Ownership, Beneficial Ownership, Stock Options, Restricted Stock Units, Executive Compensation, Hilton H. Schlosberg, Corporate Governance

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