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YUM! BRANDS, INC.-2016Proxy Statement50
Proxy Statement
EXECUTIVE COMPENSATION
Other NEO 2015 Total Direct Compensation
Patrick J. Grismer
Chief Financial Ofcer
2015 Performance Summary
The Committee determined that Mr.Grismer’s performance
as the Chief Financial Officer was on target and approved a
100 individual performance factor. Despite below target
financial performance, the Committee determined that
Mr.Grismer positively impacted the Company’s long-term
opportunities by driving Company-wide strategic growth
priorities and Division initiatives, and also by his leadership in
the review of strategic options that led to the Company’s
announcement to separate the Company into two independent
publicly-traded companies. Mr.Grismer’s individual performance
factor, combined with a team factor of 53, resulted in him
receiving 53% of his target bonus.
2015 Committee Decisions
•Base salary was increased 12% percent for 2015.
•
Annual cash bonus target was increased to 105% of base
salary.
•Target grant value of equity award was increased 18%.
The Committee approved the foregoing increases in
Mr.Grismer’s compensation in recognition of his sustained
performance and several years in the role of CFO. These
increases brought Mr.Grismer’s total direct compensation
to between the 50th and 75th percentile of the Executive
Peer Group for his position.
On December 5, 2015, Mr.Grismer notified the Company
that he intended to resign from the Company on February19,
2016. The Company and Mr. Grismer executed a letter of
understanding at that time in which the Company agreed
to accelerate a portion of Mr.Grismer’s unvested SARs
having an intrinsic fair value of $500,000 on February 19,
2016, Mr.Grismer’s departure date from the Company.
The table below summarizes how the annual performance-
based incentive award was calculated based on the formula
described above at page 46 for Mr.Grismer:
2015 BONUS AWARD
Base Salary $800,000
X
Target Bonus % 105%
X
Team Performance Factor 53%
X
Individual Performance Factor 100%
=
2015 Bonus Award $445,200
The graphic below illustrates Mr.Grismer’s 2015 direct
compensation:
2015 TOTAL DIRECT COMPENSATION
Base Salary
$790,192
Performance
Shares
$420,070
Stock Appreciation
Rights
$1,680,012
Annual
Incentive Award
$445,200
Variable
Compensation
Fixed
Compensation
Total
Long-Term
Equity
Compensation
Total Annual Cash
Compensation