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YUM! BRANDS, INC.-2016Proxy Statement 53
Proxy Statement
EXECUTIVE COMPENSATION
Brian Niccol
Chief Executive Ofcer of Taco Bell Division
2015 Performance Summary
The Committee determined Mr.Niccol’s performance as
the Chief Executive Officer, Taco Bell Division, was significantly
above target and approved a 150 individual performance
factor. Under Mr.Niccol’s leadership, Taco Bell Division’s
operating performance was very strong with 5% same-store
sales growth and operating profit growth of 12%. Mr.Niccol’s
individual performance factor, combined with a team factor
of 160 (discussed at page 47), resulted in him receiving
240% of his target bonus.
2015 Committee Decisions
Mr.Niccol was promoted to CEO of the Taco Bell Division,
effective, January 1, 2015. In recognition of this promotion,
the Committee made the following changes to Mr.Niccol’s
target compensation for 2015:
• Base salary was increased 17% percent for 2015.
•
Annual cash bonus target was increased to 90% of base
salary.
•
Target grant value of long-term incentive equity awards
was increased by 80%.
•
Received CEO Award for superlative long term performance
at Taco Bell and in recognition of promotion to Taco Bell
CEO (grant date fair market value of award was
$1,091,491).
These increases brought Mr.Niccol’s total direct
compensation to between the 50th and 75th percentile of
the Executive Peer Group for his position.
The table below summarizes how the annual performance-
based incentive award was calculated based on the formula
described above at page 46 for Mr.Niccol:
2015 BONUS AWARD
Base Salary $700,000
X
Target Bonus % 90%
X
Team Performance Factor 160%
X
Individual Performance Factor 150%
=
2015 Bonus Award $1,512,000
The graphic below illustrates Mr.Niccol’s 2015 direct
compensation:
2015 TOTAL DIRECT COMPENSATION
Base Salary
$697,688
Performance
Shares
$250,031
Stock Appreciation
Rights
$2,091,503
Annual
Incentive Award
$1,512,000
Variable
Compensation
Fixed
Compensation
Total
Long-Term
Equity
Compensation
Total Annual Cash
Compensation