Yum CEO's Total Pay Drops 29% to $10 Million in 2013

By John Kell 

Total pay for Yum Brands Inc. Chairman and Chief Executive David Novak slid 29% to $10 million in 2013, as the company said his overall performance for the year was below target.

In a filing with the Securities and Exchange Commission, Yum said its 2013 financial results were also "below target," resulting in Mr. Novak receiving 41% of his target bonus.

The restaurant company has been trying to recover from food-safety concerns in China--the company's biggest market--related to KFC chicken suppliers more than a year ago. In November, Yum began an advertising and social-media campaign to assure people that its food is safe, and late last year promised major new initiatives to improve its KFC brand in China during 2014.

Total pay for Sam Su, the head of Yum's business in China, was $10.3 million in 2013, down 38% from a year earlier. Mr. Su's performance was also "below target," as Yum said the China division didn't achieve operating profit or system sales growth targets.

But Yum praised productivity improvement and new store openings that it believes will boost future performance. Mr. Su's performance resulted in him receiving 49% of his target bonus.

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