Pizza Hut 2013 Annual Report Download - page 60

YUM! BRANDS, INC.-2014Proxy Statement38
Proxy Statement
EXECUTIVE COMPENSATION
Individual Performance
Our Board, under the leadership of the Committee Chair,
approved Mr. Novak’s written goals at the beginning of the
year and conducted a mid-year and year-end evaluation of
his performance. These evaluations included a review of
his leadership pertaining to the achievement of his written
goals that included business results, leadership in the
development and implementation of Company strategies,
and development of Company culture and talent.
The Committee determined that Mr. Novak’s overall
performance for 2013 was below target, as Yum’s financial
results were below target, and awarded him an individual
performance factor of 90. This individual performance factor,
combined with YUM’s team factor of 45, resulted in him
receiving 41% of his target bonus. This determination was
based on the Committee’s assessment of Mr. Novak’s
performance against his written goals including (without
assigning a weight to any particular item):
•Not achieving EPS growth target of 10%; EPS declined
by 9%(1);
•
System same-store sales were flat or declined in every
division except Taco Bell and YRI;
•
YRI opened a record 1,055 new restaurants last year and
China exceeded their development plan;
•
Grew 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 with
restaurant level margins of 19%;
•
Development of strong leaders and fostering the customer-
focused employee culture in the Company; and
•
His continued commitment to corporate social responsibility
through the World Food Programme and other hunger-
related organizations.
Individual performance of the NEOs (other than the CEO)
is based upon the Committee’s subjective assessment of
each NEO’s performance for the year, including consideration
of specific objective individual performance goals set at the
beginning of the year. The CEO provides the Committee
with his evaluation of each of the NEO’s performance and
recommends an individual performance rating tothe
Committee.
For Mr. Grismer, the Committee determined his performance
as the Chief Financial Officer was below target and approved
a 95 individual performance factor. This was based upon
below target Company financial performance. The Committee
also determined that Mr. Grismer positively impacted the
Company’s long-term opportunities by driving Company-
wide strategic growth priorities and division initiatives.
Mr.Grismer’s individual performance factor, combined with
a team factor of 45, resulted in him receiving 43% of his
target bonus.
For Mr. Su, the Committee determined his overall individual
performance for 2013 was below target and approved a
90 individual performance factor. This was based upon the
China Division not achieving operating profit or system sales
growth targets. The Committee also determined China
Division’s productivity improvement and new store builds
were important achievements in 2013 that will aid future
performance. Mr. Su’s individual performance factor,
combined with a team factor of 54, resulted in him receiving
49% of his target bonus.
For Mr. Creed, the Committee determined his overall individual
performance for 2013 was significantly above target and
approved a 145 individual performance factor. This
determination was based upon his overall leadership of
Taco Bell: exceeding operating profit, restaurant development
and restaurant margin plans, driving product innovation
and promoting brand differentiation through a focus on
digital media. Mr. Creed’s individual performance factor,
combined with a team factor of 139, resulted in him receiving
202% of his target bonus.
For Mr. Pant, the Committee determined his overall individual
performance for 2013 was on target and approved a
115individual performance factor. This was based upon
YRI significantly exceeding its development and customer
satisfaction targets, essentially meeting its operating profit
target, while achieving near-plan system sales growth.
Mr.Pant’s individual performance factor, combined with a
team factor of 91, resulted in him receiving 105% of his
target bonus.
(1) Prior to Special Items
(2) Prior to foreign currency translations