Pizza Hut 2014 Annual Report Download - page 62

15MAR201511093851
Individual Performance his evaluation of each of the NEO’s performance and
recommends an individual performance rating to the
Our Board, under the leadership of the Committee Chair, Committee.
approved Mr. Novak’s goals at the beginning of the year and
conducted a mid-year and year-end evaluation of his For Mr. Grismer, the Committee determined his performance
performance. These evaluations included a review of his as the Chief Financial Officer was on target and approved a
leadership pertaining to the achievement of his goals that 110 individual performance factor. Despite below target
included business results, leadership in the development and Company financial performance, the Committee determined
implementation of Company strategies, and development of that Mr. Grismer positively impacted the Company’s long-
Company culture and talent. term opportunities by driving Company-wide strategic growth
priorities and division initiatives and also successfully
The Committee determined that Mr. Novak’s overall executing the Company’s financial strategies. Mr. Grismer’s
performance for 2014 was below target, as YUM’s financial individual performance factor, combined with a team factor of
results were below target, and awarded him an individual 34, resulted in him receiving 37% of his target bonus.
performance factor of 65. This individual performance factor,
combined with YUM’s team factor of 34, resulted in Mr. Novak For Mr. Su, the Committee determined his overall individual
receiving 22% of his target bonus. This determination was performance for 2014 was below target and approved a 65
based on the Committee’s subjective assessment of individual performance factor. This was based upon the
Mr. Novak’s performance against his goals including (without China Division not achieving operating profit and system
assigning a weight to any particular item): sales growth targets, driven by adverse publicity of an
improper food handling incident by a former supplier and
Not achieving EPS growth target of 20%; EPS increased poor performance of the China Division’s Little Sheep
by 4%(1)
business. The Committee also recognized that China
China Division’s below target sales and profit results, Division’s productivity improvements and new store builds
including the poor performance of Little Sheep, a were important achievements in 2014 that will aid future
subsidiary of the China Division performance. Mr. Su’s individual performance factor,
combined with a team factor of 46, resulted in him receiving
All divisions failed to make their operating profit plans for 30% of his target bonus.
the year
For Mr. Creed, the Committee determined his overall
KFC and Taco Bell increased system sales by 6% and individual performance for 2014 was above target and
4% and operating profit by 13% and 5% respectively, approved a 130 individual performance factor. This
despite strong commodity headwinds(2)
determination was based upon his overall leadership of
Over 2,000 new builds outside the US and increased Taco Bell: growing US same-store sales 3% for the year
development in the US driven primarily by Taco Bell’s 180 driven in part by breakfast sales, new product innovation
net new builds and promoting brand differentiation through a focus on
digital media. Mr. Creed’s individual performance factor,
YUM’s continued improvements in one system
combined with a team factor of 97, resulted in him receiving
operational excellence with continued focus on
126% of his target bonus.
compliance and customer satisfaction metrics
For Mr. Bergren, the Committee determined his overall
Development of strong leaders and fostering the
individual performance for 2014 was below target and
customer-focused employee culture in the Company
approved a 90 individual performance factor. This
Continued commitment to corporate social responsibility determination was based on the Pizza Hut division not
through the World Food Programme and other hunger achieving operating profit or system same-store sales growth
relief organizations. targets. Mr. Bergren’s individual performance factor,
Individual performance of the NEOs (other than the CEO) is combined with a team factor of 37, resulted in him receiving
based upon the Committee’s subjective assessment of each 33% of his target bonus.
NEO’s performance for the year, including consideration of
specific objective individual performance goals set at the (1) Prior to Special Items
beginning of the year. The CEO provides the Committee with (2) Prior to foreign currency translations
Summary of Earned Annual Incentives for 2014
The table below summarizes how the formula was applied and the actual amounts earned for 2014 performance.
Novak $1,450,000 ⳯160% ⳯34% ⳯65% ⳱$512,720
Grismer $ 715,000 ⳯100% ⳯34% ⳯110% ⳱$267,410
Su $1,100,000 ⳯115% ⳯46% ⳯65% ⳱$378,235
Creed $ 750,000 ⳯100% ⳯97% ⳯130% ⳱$945,750
Bergren $ 725,000 ⳯100% ⳯37% ⳯90% ⳱$241,425
40 YUM! BRANDS, INC. 2015 Proxy Statement
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Base Salary Target Bonus Team Individual Bonus Paid for
NEO Year End 2014 Percentage Performance Performance 2014 Performance
EXECUTIVE COMPENSATION
Proxy Statement