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YUM! BRANDS, INC.-2016Proxy Statement 39
Proxy Statement
SECTION16(a) BENEFICIAL OWNERSHIP
REPORTINGCOMPLIANCE
Section16(a) of the Securities Exchange Act of 1934, as amended, requires our directors, executive officers and persons
who own more than 10% of the outstanding shares of YUM common stock to file with the SEC reports of their ownership
and changes in their ownership of YUM common stock. Directors, executive officers and greater-than-ten percent
shareholders are also required to furnish YUM with copies of all ownership reports they file with the SEC. To our knowledge,
based solely on a review of the copies of such reports furnished to YUM and representations that no other reports were
required, all of our directors and executive officers complied with all Section16(a) filing requirements during fiscal 2015,
except that the Form 4 filed on October 9, 2015 by Mr.Novak reported one late transaction.
EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
This Compensation Discussion and Analysis (“CD&A”) describes our executive compensation philosophy and program,
the compensation decisions of the Management Planning and Development Committee (the “Committee”), and factors
considered in making those decisions.
Table of Contents
I. Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
A. Yum 2015 Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
B. Named Executive Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
II. Compensation Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
A. Compensation Philosophy and Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
B. Compensation Changes for 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
C. Relationship between Company Pay and Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
III. Elements of Executive Compensation Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
A. Base Salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
B. Annual Performance-Based Cash Bonuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
C. Long-Term Equity Performance-Based Incentives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
IV. 2015 Named Executive Officer Total Direct Compensation and Performance Summary . . . . 49
V. Retirement and Other Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
VI. How Compensation Decisions Are Made . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
VII. Compensation Policies and Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58