Pizza Hut 2011 Annual Report Download - page 54

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30MAR201215222893
16MAR201218540977
30MAR201215223047
Significant Majority of NEOs’ Pay Tied to Performance
Our annual compensation program has three primary elements: base salary, annual cash bonuses and
long-term equity performance-based incentives. As the graph below shows, the performance-based
incentives constitute by far the largest portion of target compensation for our NEOs:
CEO Target Pay Mix—2011
Salary %, 14%
Annual Bonus %, 23%
Long-Term Equity %, 63%
Salary %
Annual Bonus %
Long-Term Equity %
All Other NEOs Target Pay Mix—2011
Proxy Statement
Salary %, 26%
Salary %
Annual Bonus %
Long-Term Equity %
Annual Bonus %, 27%
Long-Term Equity %, 47%
2011 Compensation Program/Decisions
For 2011, we highlighted four major growth strategies as drivers for earnings growth. The Company
has communicated these same strategies to investors for several years. These strategies are:
• Build Leading Brands in China in Every Significant Category
• Drive Aggressive International Expansion and Build Strong Brands Everywhere
• Dramatically Improve U.S. Brand Positions, Consistency and Returns
• Drive Industry-Leading Long-Term Shareholder and Franchisee Value
Our compensation program is designed to support these strategies. For our annual bonus program,
the Committee sets performance measures and targets that it believes will help the Company continue to
execute against these strategies. The Company’s 2011 results measured against the 2011 targets are used by
the Committee when evaluating our NEOs’ performance and determining the NEOs’ annual bonus (the
performance measures, targets and results are discussed beginning at page 44).
The Company believes this compensation program, which as noted above has been in place for many
years, is an important factor in driving our NEOs’ performance to achieve long-term EPS growth and total
36