The Securities and Exchange Commission has ruled that PepsiCo Inc. shareholders will get to vote on a resolution critical of the company's recycling policies, rebuffing the soft-drink giant's attempt to block the vote.
Pepsi argued the resolution was misleading, but the SEC ruled Feb. 21 that it should stand, if shareholders provide some additional documentation of their claims. Ken Scott, research analyst for one of the shareholders, Walden Asset Management in Boston, said negotiations continue, but the resolution is likely to be on the ballot at Pepsi's annual meeting.
The resolution asks the Purchase, N.Y.-based company to use 25 percent recycled PET in its bottles and to work to boost container recycling to 80 percent.
A similar resolution filed with Coca-Cola Co. also is probably going to be voted on by shareholders, Scott said. But, unlike Pepsi, he said Coke has come forward with two substantive proposals that he declined to specify.
"Coke is definitely ahead of Pepsi ... in terms of its willingness and openness to alternative solutions for container recycling," Scott said.
Coke and Pepsi officials could not be reached for comment.