Pizza Hut 2014 Annual Report Download - page 69

(representing his December 31, 2012 estimated lump amount under PEP). Mr. Novak now receives a market rate of interest on his LRP account plus an annual
benefit allocation equal to 9.5% of his salary plus target bonus.
For Mr. Su, amounts in this column reflect the aggregate increase in actuarial present value of age 62 accrued benefits under the Yum International Retirement
Plan (‘‘YIRP’’) during the 2014 fiscal year. See the Pension Benefits Table at page 53 for a detailed discussion of the Company’s pension benefits. Mr. Grismer
was hired after September 30, 2001, and is ineligible for the Company’s Retirement Plan. Mr. Creed and Mr. Bergren are not active participants in the Retirement
Plan but each maintains a balance in the Retirement Plan from the two years (2002 and 2003) and six years (1992-1998) respectively during which he was a
participant.
For Messrs. Grismer, Creed and Bergren, amounts in this column also represent the above market earnings as established pursuant to SEC rules which have
accrued under each of their accounts under the LRP for Messrs. Grismer and Bergren and the Third Country National Plan (‘‘TCN’’) for Mr. Creed, which is
described in more detail beginning at page 55 under the heading ‘‘Nonqualified Deferred Compensation’’.
(6) Amounts in this column are explained in the All Other Compensation Table and footnotes to that table, which follows.
(7) No amounts are reported for Mr. Creed for 2012 since he was not a NEO for that year.
(8) Mr. Bergren became a NEO in 2014. No amounts are reported for Mr. Bergren for 2012 and 2013 since he was not a NEO for those years.
All Other Compensation Table
The following table contains a breakdown of the compensation and benefits included under All Other Compensation in the
Summary Compensation Table above for 2014.
Novak 300,032 — 27,108 358,150 3,738 689,028
Grismer — 991 5,273 135,850 — 142,114
Su 221,139 4,762,222 21,286 — 31,064 5,035,711
Creed 68,813 13,469 9,708 225,000 28,078 345,068
Bergren — — 22,872 406,000 — 428,872
(1) Amounts in this column include for Mr. Novak and Mr. Creed: incremental cost for the personal use of Company aircraft ($300,032 and $68,813 respectively) —
we calculate the incremental cost to the Company of any personal use of Company aircraft based on the cost of fuel, trip-related maintenance, crew travel, on
board catering, landing and license fees, ‘‘dead head’’ costs of flying planes to and from locations for personal use, and contract labor; and for Mr. Su: expatriate
spendables/housing allowance ($221,139).
(2) Amounts in this column reflect payments to the executive of tax reimbursements. For Mr. Su, as explained at page 42, this amount represents the Company-
provided tax reimbursement for China income taxes incurred on deferred income distributions and stock option exercises which exceed the marginal Hong Kong
tax rate and a tax equalization settlement amount related to income for 2012. For Mr. Grismer, this amount represents the adjustment and equalization of foreign
tax payments incurred with respect to income recognized in 2014 that was attributable to a previous international assignment. For Mr. Creed, this amount
represents Company-provided tax reimbursement for his relocation to Company headquarters in preparation of his new position as CEO effective January 1,
2015.
(3) These amounts reflect the income each executive was deemed to receive from IRS tables related to Company-provided life insurance in excess of $50,000. The
Company provides every salaried employee with life insurance coverage up to one times the employee’s salary plus target bonus.
(4) For Messrs. Novak, Grismer and Bergren, this column represents Company’s annual allocations to the LRP, an unfunded, unsecured account based retirement
plan. For Mr. Creed, this column represents the Company’s annual allocation to the TCN, an unfunded, unsecured account based retirement plan.
(5) This column reports the total amount of other benefits provided, none of which individually exceeded the greater of $25,000 or 10% of the total amount of these
benefits and the perquisites and other personal benefits shown in column (b) for each NEO. These other benefits include: home security expense, home leave
expenses, personal use of Company aircraft, tax preparation assistance and relocation.
2015 Proxy Statement YUM! BRANDS, INC. 47
Perquisites and
other personal Tax Insurance LRP/TCN
benefits Reimbursements premiums Contributions Other Total
Name ($)(1) ($)(2) ($)(3) ($)(4) ($)(5) ($)
(a) (b) (c) (d) (e) (f) (g)
EXECUTIVE COMPENSATION
Proxy Statement