Yum! Brands announced Monday that CEO David Gibbs will forego his salary and donate the money in the form of bonuses for managers and to an employee relief fund.
Gibbs’ salary will assist with funding one-time $1,000 bonuses to 1,200 general managers at company-owned KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill locations. The remaining cash will go toward the Yum! Brands Foundation Global Employee Medical Relief Fund, which will provide financial assistance to those impacted by COVID-19. The company will continue to grow the fund through voluntary donations.
Gibbs, who has worked at the company for 30 years, took over the CEO reins to start the year, replacing Greg Creed. Before, he worked as chief operating officer and chief financial officer.
According to filings, as CEO, Creed made $13,985,690 in total compensation in fiscal 2018. Of this total, $1,244,615 was received as a salary, $3,144,531 as a bonus, $4,450,009 as stock options, $4,450,008 as stock, and $696,527 came from other types of compensation. Gibbs, who was CFO and president at the time, made $5,126,993 in total compensation that year. Of that, $890,769 was salary, $1,467,113 bonus, $1,375,009 stock options, $1,375,001 as stock, and $19,101 came from other types of compensation.
The move follows Texas Roadhouse CEO Kent Taylor, who announced last week that he was forgoing his salary and incentive bonus to help hourly front-line employees. Darden CEO Gene Lee said during his company’s recent earnings call that he would not take a salary, as well.
In the U.S., Yum! is allowing franchisees—who operate 98 percent of locations—to defer all 2020 capital obligations for remodels and new unit development through the end of the year. The company also drew down $525 million on its credit facility, which provided the company with more than $1 billion in cash. At company-owned restaurants in the U.S., Yum! Is paying employees who are required to stay home, or work at a restaurant that is closed, and encouraging franchisees to do the same.
The company previously announced that KFC is assisting charity partner Blessings in a Backpack to feed 100,000 children affected by closures. It's also delivering food to healthcare workers and hospitals. Pizza Hut is also providing food to healthcare workers, in addition to partnering with First Book to donate books to families and children in need.
Taco Bell is using its Taco Truck to feed healthcare workers and and donating to local food banks. The Habit Burger Grill is providing free meals to the medical community, first responders, and volunteers through its food trucks and the Second Harvest Food Bank.
The restaurants are offering low contact through delivery, drive-thru, or curbside pick-up where available.
Yum! announced earlier that it closed roughly 7,000 of its global restaurants, including more than 1,000 domestic Pizza Hut express and 900-plus KFC's in the U.K. The company operates a total of 50,000 units worldwide.