Pizza Hut 2012 Annual Report Download - page 75

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YUM! BRANDS, INC.-2013Proxy Statement 57
Proxy Statement
EXECUTIVE COMPENSATION
If a change in control had occurred as of December31,2012, the following payments, or other benefi ts would have been made.
Novak
$
Grismer
$
Su
$
Carucci
$
Pant
$
Severance Payment $ 11,982,800 $ 1,982,180 $ 8,410,000 $ 4,932,000 $ 3,720,076
Annual Incentive 4,584,320 760,760 2,039,813 1,846,785 1,620,000
Accelerated Vesting of Stock Options and SARs 22,865,360 3,231,648 14,702,490 12,190,085 9,793,696
Accelerated Vesting of RSUs — 614,319 11,931,947 — —
Acceleration of PSU Performance/Vesting 1,250,912 — 546,784 390,748 302,920
Outplacement 25,000 25,000 25,000 25,000 25,000
Forfeiture due to Modifi ed Cap — (62,357) — — —
Excise Tax and Gross-Up — —(1) — — 1,933,480
TOTAL 40,708,392 6,551,550 37,656,034 19,384,618 17,395,172
(1) Mr.Grismer would not be subject to an excise tax since his total severance payment does not exceed the threshold for which excise tax is payable by more than 10%.
In accordance with the Company’s change in control severance agreements, Mr.Grismer’s severance payment would be reduced by the “Forfeiture due to Modified
Cap” amount to the threshold amount.
Effective March15,2013, the Company eliminated excise tax
gross-ups and implemented a best net after-tax method. See the
Company’s Compensation Discussion and Analysis on page 30
for more detail. In addition, effective for equity awards made in
2013 and beyond, outstanding awards will fully and immediately
vest if the executive is employed on the date of the change in
control of the Company and is is involuntarily terminated (other
than by the Company for cause) on or within two years following
the change in control (“double trigger” vesting).