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YUM! BRANDS, INC.-2014Proxy Statement28
Proxy Statement
EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
Introduction
This Compensation Discussion and Analysis (“CD&A”) describes our executive compensation philosophy and program, the
decisions the Management Planning and Development Committee (the “Committee”) has made under this program and factors
considered in making those decisions� This CD&A focuses on the compensation of the following Named Executive Officers
(“NEOs”) for 2013:
Name Title(1)
David C. Novak Chairman of the Board and Chief Executive Officer of YUM
Patrick J. Grismer Chief Financial Officer of YUM
Jing-Shyh S. Su Vice Chairman of the Board of YUM and Chairman and Chief Executive Officer of
YUM Restaurants China
Greg Creed Chief Executive Officer of Taco Bell
Muktesh Pant Chief Executive Officer of Yum Restaurants International
(1) Title as of 12/31/13
We will first provide a brief executive overview. We will then discuss and analyze the following topics:
•Chief Executive Officer Pay
•How Compensation Decisions Are Made
•Elements of Executive Compensation Program
•Compensation Policies & Practices
Executive Overview
The power of YUM persists even during what was undoubtedly
a difficult year. Our EPS decline of 9%
(1)
and worldwide operating
profit decline of 10%
(2)
was disappointing and below our
expectations. Yet, despite our challenges, in 2013 we continued
to provide value to our shareholders with an increase of 16% in
total shareholder return. We maintain a long-term view of our
business, making decisions that put us in a position of strength.
And in 2013, YUM delivered some major accomplishments
through our global portfolio of leading brands including:
•
Opening 1,952 new restaurants outside of the U.S. with
82% of this development occurring in high growth emerging
markets.
•
Growing worldwide system sales by 2%, prior to foreign
currency translation, including 5% growth at Yum!
Restaurants International (YRI) and 1% growth in the U.S.
System; system sales declined 4% in China.
•
Growing operating profit by 10%(2) at YRI, driven by same-
store sales growth and net new unit development, and
3%
in the U.S, with Taco Bell U.S. leading the way by
delivering restaurant level margins of 19%.
(1) Prior to Special Items
(2) Prior to foreign currency translations