Industry News | April 8, 2007
Yum Executives Combined Pay Nearly $15M
David Novak, chairman and CEO of the parent company of fast food mainstays Taco Bell, Pizza Hut, KFC, Long John Silver's, and A&W, pocketed a base salary of $1.2 million and another $3 million in bonuses, $4 million in stock shares and nearly $900,000 in additional compensation, among other benefits.
The company’s 2006 recently released proxy statement reveals that at least four other Yum Brands executives each received at least $1 million in salary, stocks ranging in value from $250,000 and up, and other compensation of between $100,000 and $200,000.
Yum’s net income rose from $762 million in 2005 to $824 million in 2006. Its revenue increased by two percent to $9.35 billion, anchored primarily by a booming international market that increased by three percent in the fourth quarter of 2006.
But the company saw domestic profits curbed after customers of several New England states Taco Bells became ill, likely from E. coli in bad lettuce. The company changed suppliers late last year.
Novak spent 20 years rising through the ranks of Yum Brands Inc., and in the 1990s sat at the helm of Pizza Hut and KFC operations. He became CEO of Yum Brands in 2000 and chairman in 2001.
Part of his $900,000 in additional compensation also included $145,000 for use of the company airplane in 2004 and 2005 – as required by company security policy, according to the proxy statement.
Emil J. Brolick, president of Taco Bell, earned a $535,000 base salary and a $1.1 million bonus. Gregg Dedrick, president of KFC, earned a base salary of $438,000, an $886,000 bonus and $164,000 in additional compensation.
Christian L. Campbell, senior vice president and general counsel, earned $509,000, a $582,000 bonus, and $139,000 in other compensation while Graham Allan, president of Yum Foods International, earned a $457,000 salary, a $569,000 bonus and $200,000 in other compensation.
All received various stock options.
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