Pizza Hut 2008 Annual Report Download - page 92

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benefits available generally to salaried employees, such as distributions under the Company’s 401(k) Plan,
retiree medical benefits, disability benefits and accrued vacation pay.
Due to the number of factors that affect the nature and amount of any benefits provided upon the
events discussed below, any actual amounts paid or distributed may be different. Factors that could affect
these amounts include the timing during the year of any such event, the Company’s stock price and the
executive’s age.
Stock Options and SAR Awards. If one or more named executive officers terminated employment for
any reason other than retirement, death, disability or following a change in control as of December 31,
2008, they could exercise the stock options and SARs that were exercisable on that date as shown at the
Outstanding Equity Awards at Fiscal Year-End table on page 65, otherwise all options and SARs, pursuant
to their terms, would have been forfeited and cancelled after that date. If the named executive had retired,
died or become disabled as of December 31, 2008, exercisable stock options and SARs would remain
exercisable through the term of the award. Except in the case of a change in control, described below, no
stock options or SARs become exercisable on an accelerated basis. Benefits a named executive officer may
receive on a change of control are discussed below.
Deferred Compensation. As described in more detail beginning at page 71, the named executives
participate in the EID Program, which permits the deferral of salary and annual incentive compensation.
The last column of the Nonqualified Deferred Compensation Table on page 73 reports each named
executive’s aggregate balance at December 31, 2008. The named executives are entitled to receive their
vested amount under the EID Program in case of voluntary termination of employment. In the case of
involuntary termination of employment, they are entitled to receive their vested benefit and the amount of
the unvested benefit that corresponds to their deferral. In the case of death, disability or retirement after
age 65, they or their beneficiaries are entitled to their entire account balance as shown in the last column
of the Nonqualified Deferred Compensation table on page 73. The amounts they would have been entitled
to in case of a voluntary or involuntary termination as of December 31, 2008 are as follows:
Voluntary Involuntary
Termination Termination
($) ($)
Proxy Statement
Novak ................................ 64,797,153 64,797,153
Carucci ............................... 4,381,451 5,560,979
Su................................... 3,357,375 3,357,375
Allan ................................. 5,104,620 5,104,620
Creed ................................ 715,459 1,243,539
Payouts to the executive under the EID Program would occur in accordance with the executive’s
elections. In the case of amounts deferred after 2002, such payments deferred until termination of
employment or retirement will not begin prior to six months following the executive’s termination of
employment. Executives may receive their benefit in a lump sum payment or in installment payments for
up to 20 years. Each of the named executive officers has elected to receive payments in a lump sum.
Pension Benefits. The Pension Benefits Table on page 67 describes the general terms of each pension
plan in which the named executives participate, the years of credited service and the present value of the
annuity payable to each named executive assuming termination of employment as of December 31, 2008.
The table on page 69 provides the present value of the lump sum benefit payable to each named executive
when they attain eligibility for Early Retirement (i.e., age 55 with 10 years of service) under the plans.
Life Insurance Benefits. For a description of the supplemental life insurance plans that provide
coverage to the named executives, see the All Other Compensation Table on page 62. If the named
executives had died on December 31, 2008, the survivors of Messrs. Novak, Carucci, Su, Allan and Creed
would have received Company paid life insurance of $3,500,000, $1,283,000, $1,667,000, $1,667,000 and
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