Pizza Hut 2014 Annual Report Download - page 50

Download and view the complete annual report

Please find page 50 of the 2014 Pizza Hut annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 176

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

15MAR201511093851
EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
Introduction
.................................................................................................................................................................................................................................................................................................................................................................................
This Compensation Discussion and Analysis (‘‘CD&A’’) focuses on the compensation of the following Named Executive Officers
(‘‘NEOs’’) for 2014 and describes our executive compensation philosophy and program, the decisions of the Management
Planning and Development Committee (the ‘‘Committee’’) under this program and factors considered in making those decisions.
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 Division
Scott O. Bergren Chief Executive Officer of Pizza Hut Division and Chief Innovation Officer of YUM
We will first provide a brief executive overview, including a discussion of the pay of YUM’s new Chief Executive Officer (‘‘CEO’’),
Greg Creed, which became effective January 1, 2015.
We will then discuss and analyze the following topics:
CEO Pay
How Compensation Decisions Are Made
Elements of Executive Compensation Program
Compensation Policies & Practices
Executive Overview
.................................................................................................................................................................................................................................................................................................................................................................................
In 2014, YUM’s overall performance was below expectations. The KFC division grew same-store sales 3% and
Although we experienced strong earnings growth in the first operating profit 9% through robust international
half of the year, we did not achieve our full-year earnings per performance and an improving US business.
share growth target, as second-half results for our China The Taco Bell division launched breakfast, a new value
division were heavily impacted by adverse supplier publicity. menu, innovative products and mobile ordering, fueling
While these overall results were disappointing, YUM 3% same-store sales growth and 5% operating profit
delivered strong results in the following areas, which built growth.
long-term shareholder value and enhanced shareholder Increased quarterly dividend by 11%, marking the tenth
returns: consecutive year of dividend increases at a double-digit
Opened a record 2,034 new restaurants outside the U.S., percentage rate.
with 80% of this development occurring in high-growth
emerging markets. Over 80% of new restaurants in the
KFC, Pizza Hut and Taco Bell divisions were opened by
franchisees, generating high returns for YUM.
28 YUM! BRANDS, INC. 2015 Proxy Statement
Name Title
•
•
•
•
•
•
•
•
Proxy Statement