Pizza Hut 2009 Annual Report Download - page 51

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at that time) for this peer group was $16.1 billion. Data for each individual job was regressed based on the
estimated revenue size of the division that the NEO was responsible for in 2008, specifically $16.3 billion
for Messrs. Novak and Carucci, $5.3 billion for Mr. Allan, and $3.1 billion for Mr. Su and Mr. Creed.
Companies included in the Peer Group
For the benchmarking done in late 2008, the peer group for all NEOs was made up of nondurable
consumer product companies. The Committee established this peer group for the CEO and other NEO’s
compensation in 2008. Periodically the Committee, with Hewitt’s assistance, reviews the composition of the
peer group to ensure the companies are relevant for comparative purposes. The Committee added six
companies and deleted ten companies for 2009. We believe this reconstituted group of companies is
reflective of nondurable consumer goods sector in which we operate. The group was chosen because each
of the company’s relative leadership position in their sector, relative size as measured by revenues, relative
complexity of the business, and in some cases because of their global reach. The companies deleted from
the survey group represented companies whose data was not as readily available, had been acquired or
because of acquisitions were no longer a good match for the group. The companies comprising this
nondurable consumer products group used for the benchmarking done at the end of 2008 were:
2007 Sales/ 2007 Sales/
Revenues Revenues
Company Name ($billions) Company Name ($billions)
Lowe’s Companies, Inc. ........... 48.3 Colgate-Palmolive Company ........ 13.8
Walgreen Co. .................. 44.8 Marriott International, Inc. ........ 13.0
PepsiCo, Inc. .................. 39.5 General Mills, Inc. .............. 12.4
Kraft Foods, Inc. ............... 37.2 Kellogg Company ............... 11.8
The Coca-Cola Company .......... 28.9 Avon Products, Inc. ............. 9.9
Macy’s, Inc. ................... 26.3 Dollar General Corporation ........ 9.2
McDonald’s Corporation .......... 22.8 OfficeMax Incorporated ........... 9.1
J. C. Penney Company, Inc. ........ 19.9 Campbell Soup Company .......... 7.9
Staples, Inc. ................... 19.4 AutoZone, Inc. ................. 6.2
Starwood Hotels & Resorts
Proxy Statement
Kimberly-Clark Corporation ........ 18.3 Worldwide, Inc. ............... 6.2
Anheuser-Busch Companies, Inc. .... 16.7 Mattel Corporation .............. 6.0
Kohl’s Corporation .............. 16.5 Darden Restaurants, Inc. .......... 5.6
The Gap, Inc. .................. 15.8 The Hershey Company ........... 4.9
Mars, Incorporated .............. (1)
Median ....................... 16.1
YUM(2) ...................... 16.3
(1) Data Not Publicly Available
(2) Projected 2008 company sales + 25% of franchisee and licensee sales
Targeting Compensation
For the NEOs, other than our CEO, we target the elements of our compensation program as follows:
• Base salary—because NEOs are expected to make significant contributions in current and future
positions and would be considered a critical loss if they left the Company, we target the
75th percentile for base salary
• Performance-based annual incentive compensation—75th percentile to emphasize superior pay for
superior performance
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