Pizza Hut 2013 Annual Report Download - page 57

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YUM! BRANDS, INC.-2014Proxy Statement 35
Proxy Statement
EXECUTIVE COMPENSATION
Company. This methodology is a more appropriate method
to determine the award amount as it better reflects the
actual historical holding pattern for SARs granted to our
CEO. Our CEO receives fewer shares under this practice
than if we used the expected term of all SARs granted by
the Company.
Our CEO’s and all other NEO’s target total direct
compensation was above the 75
th
percentile of our Executive
Peer Group for 2013. It is important to emphasize that this
is the competitive positioning of our compensation
opportunities. Realized pay is driven substantially by Company
performance, as discussed on page 30.
Elements of Executive Compensation Program
Our annual executive compensation program has three primary pay components: Base salary, annual performance-based
cash bonuses and long-term equity performance-based incentives. We also offer retirement and additional benefits.
Element Objective Form
Base salary Attract and retain high-caliber talent and provide a fixed level of cash
compensation.
Cash
Annual Performance-Based Cash
Bonuses
Motivate high performance and reward short-term Company, team
and individual performance.
Cash
Long-Term Equity Performance-Based
Incentives
Align the interests of executives with shareholders and emphasize
long-term results.
SAR & PSU
Retirement and Additional Benefits Provide for long-term retirement income and basic health and welfare
coverage.
Various
Details on each program element follow.
Base Salary
We provide base salary to compensate our NEOs for their primary roles and responsibilities and to provide a stable level
of annual compensation. A NEO’s actual salary varies based on the role, level of his responsibility, experience, individual
performance, future potential and market value. Specific salary increases take into account these factors. In addition,
salary increases may be warranted based on a promotion or change in the responsibilities of the NEO. The Committee
reviews the NEOs’ salary and performance annually.
Based on the Committee’s review, the following actions were taken regarding base salary for 2013:
NEO 2013 Base Salary Action Reason
Novak $ 1,450,000 No increase No increase since existing total cash compensation is slightly above our
target philosophy
Grismer $ 650,000 18% increase Based on recent move to CFO position; adjustment aligned his base
salary with our target philosophy
Su $ 1,100,000 No increase No increase since existing base salary is above our target philosophy
Creed $ 750,000 No increase No increase since existing base salary is above our target philosophy
Pant $ 750,000 No increase No increase since existing base salary is slightly above our target philosophy