Pizza Hut 2010 Annual Report Download - page 54

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9MAR201101381779
Our Named Executive Officers (NEOs) for 2010:
• David C. Novak, Chairman, Chief Executive Officer and President
• Richard T. Carucci, Chief Financial Officer
• Jing-Shyh S. Su, Vice Chairman of the Board and Chairman and CEO—China Division
• Graham D. Allan, Chief Executive Officer—Yum Restaurants International Division (‘‘YRI’’)
• Scott Bergren, Chief Executive Officer—Pizza Hut U.S. and Yum! Innovation
YUM’s Compensation Philosophy
YUM’s compensation philosophy is reviewed annually by the Committee.
Our philosophy is to:
• reward performance
• pay our restaurant general managers and executives like owners
• design pay programs at all levels that align team and individual performance, customer satisfaction
and shareholder return
• emphasize long-term incentive compensation
• require executives to personally invest in Company stock
Objectives of YUM’s Compensation Program
The objectives of our executive compensation program are to:
• attract and retain highly qualified employees through competitive compensation and benefit
programs
• reward our employees for personal contributions that grow the business
• maximize shareholder returns
Proxy Statement
Key Elements of Compensation
The following table lists the key elements that generally comprise our 2010 executive compensation.
Element Purpose Form
Base Salary ............ Provide compensation for performance of Cash
primary roles and responsibilities
Performance-based annual
incentive compensation .... Provide incentive to drive company performance Cash
with payout based on achievement of YUM’s
and its divisions’ short-term goals and strategic
objectives
Long-term incentive
compensation .......... Motivate our executives to help us achieve our Stock Appreciation
long-range performance goals that will enhance Rights/Stock Options
our value and, as a result, enhance our and Performance
shareholders’ returns on their investments Share Units
Retirement benefits ....... Provide tax-advantaged means to accumulate Defined Benefit Plan,
retirement benefits Defined Contribution
Plan
35