Pizza Hut 2008 Annual Report Download - page 103

23MAR200920295069
Exhibit A
YUM! BRANDS, INC.
EXECUTIVE INCENTIVE COMPENSATION PLAN
SECTION 1
GENERAL
1.1. Purpose. The purpose of the Yum! Brands, Inc. Executive Incentive Plan (the ‘‘Plan’’) is to
promote the interests of Yum! Brands, Inc. (the ‘‘Company’’ or ‘‘Yum’’) and its shareholders by
(i) motivating executives, by means of performance-related incentives, to achieve financial goals;
(ii) attracting and retaining executives of outstanding ability; (iii) strengthening the Company’s capability
to develop, maintain and direct a competent executive staff; (iv) providing annual incentive compensation
opportunities which are competitive with those of other major corporations; and (v) enabling executives to
participate in the growth and financial success of the Company.
1.2. Participation. Subject to the terms and conditions of the Plan, the Committee shall determine
and designate, from time to time, from among the Eligible Employees, those persons who will be granted
one or more Awards under the Plan, and thereby become ‘‘Participants’’ in the Plan.
1.3. Definitions. Capitalized terms in the Plan shall be defined as set forth in the Plan (including
the definition provisions of Section 7 of the Plan).
SECTION 2
AWARDS
2.1. Grant of Awards.
(a) For any Performance Period, the Committee shall determine and designate those Eligible
Employees (if any) who shall be granted Awards for the period, and shall establish, with respect to each
Award, (i) a Target Amount, expressed as a percentage of the recipient’s base salary for such Performance
Period; (ii) the performance goal(s) for the Performance Period with respect to the Award; (iii) the
Proxy Statement
payments to be earned with respect to various levels of achievement of the performance goal(s) for the
Performance Period; and (iv) whether the Award is intended to satisfy the requirements for Performance-
Based Compensation. For any Performance Period for which Awards are granted, the Committee shall
create the Award Schedule, and the determinations required for Awards intended to be Performance-
Compensation shall be made at the time necessary to comply with such requirements. The grant of an
Award to any Eligible Employee for any Performance Period shall not bestow upon such Eligible
Employee the right to receive an Award for any other Performance Period.
(b) The performance goal(s) to be established with respect to the grant of any Awards shall be based
upon on any one or more of the following measures: cash flow, earnings per share, return on operating
assets, return on equity, operating profit, net income, revenue growth, Company or system sales,
shareholder return, gross margin management, market share improvement, market value added, restaurant
development, customer satisfaction or economic value added. Such goals may be particular to a line of
business, Subsidiary, or other unit or may be based on the Company or franchise system generally.
2.2. Determination of Award Amount. Payment with respect to Awards for each Participant for a
Performance Period shall be determined in accordance with the Award Schedule established by the
Committee, subject to the following:
(a) Prior to the payment with respect to any Award designated as intended to satisfy the
requirements for Performance-Based Compensation, the Committee shall certify the attainment of
the performance goal(s) and any other material terms.
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