Pizza Hut 2008 Annual Report Download - page 24

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23MAR200920294881
GOVERNANCE OF THE COMPANY
The business and affairs of YUM are managed under the direction of the Board of Directors. The
Board believes that good corporate governance is a critical factor in achieving business success and in
fulfilling the Board’s responsibilities to shareholders. The Board believes that its practices align
management and shareholder interests. Highlights of our corporate governance practices are described
below.
What is the composition of the Board of Directors and how often are members elected?
Our Board of Directors presently consists of 13 directors whose terms expire at this Annual Meeting.
As discussed in more detail later in this section, the Board has determined that 10 of our 13
continuing directors are independent under the rules of the New York Stock Exchange (‘‘NYSE’’).
How often did the Board meet in fiscal 2008?
The Board of Directors met 6 times during fiscal 2008. Each director attended at least 75% of the
meetings of the Board and the committees of which he or she was a member (held during the period he or
she served as a director).
What is the Board’s policy regarding director attendance at the Annual Meeting of Shareholders?
The Board of Directors’ policy is that all directors should attend the Annual Meeting. All directors
attended the Company’s 2008 Annual Meeting of Shareholders.
What are the committees of the Board?
The Board of Directors has standing Audit, Compensation, Nominating and Governance and
Executive/Finance Committees.
Name of Committee Number of Meetings
and Members Functions of the Committee in Fiscal 2008
Proxy Statement
Audit: • Possesses sole authority regarding the selection 9
J. David Grissom, Chair and retention of independent auditors
Robert Holland, Jr. • Reviews and has oversight over the Company’s
Kenneth G. Langone internal audit function
Jonathan S. Linen • Reviews and approves the cost and scope of
Thomas C. Nelson audit and non-audit services provided by the
independent auditors
• Reviews the independence, qualification and
performance of the independent auditors
• Reviews the adequacy of the Company’s
internal systems of accounting and financial
control
• Reviews the annual audited financial statements
and results of the audit with management and
the independent auditors
• Reviews the Company’s accounting and
financial reporting principles and practices
including any significant changes
6