Pizza Hut 2014 Annual Report Download - page 59

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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 other benefits.
Base salary Attract and retain high-caliber talent and provide a fixed level of Cash
cash compensation.
Annual Performance-Based Cash Bonuses Motivate high performance and reward short-term Company, Cash
team and individual performance.
Long-Term Equity Performance-Based Align the interests of executives with shareholders and SARs/Options & PSUs
Incentives emphasize long-term results.
Retirement and Additional Benefits Provide for long-term retirement income and basic health and Various
welfare coverage.
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 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 2014:
Novak $1,450,000 No change No change since existing total cash compensation is at our target philosophy
Grismer $ 715,000 10% increase Adjustment aligns base salary more closely with our target philosophy
Su $1,100,000 No change No change since existing base salary is above our target philosophy
Creed $ 750,000 No change No change since existing base salary is above our target philosophy
Bergren $ 725,000 No change No change since existing base salary is above our target philosophy
Annual Performance-Based Cash Bonuses
.................................................................................................................................................................................................................................................................................................................................................................................
Our performance-based annual bonus program, the Yum Leaders’ Bonus Program, is a cash-based plan. The principal purpose
of the Yum Leaders’ Bonus Program is to motivate and reward team and individual performance that drives shareholder value.
The formula for calculating the performance-based annual bonus under the Yum Leaders’ Bonus Program is:
Target Bonus Team Performance Individual Performance Bonus Payout
Base Salary ⳯⳯ ⳯ ⳱
Percentage (0 – 200%) (0 – 150%) (0 – 300%)
2015 Proxy Statement YUM! BRANDS, INC. 37
Element Objective Form
2014
NEO Base Salary Action Reason
EXECUTIVE COMPENSATION
Proxy Statement