Analysis of an International Organization: Yum! Brands Inc.
Kimberly A. Waters
Professor Dianna Anderson
May 9, 2014
With over 40,000 locations in more than 125 countries that span across six continents, Yum! Brands Inc. is the world’s largest restaurant operator in terms of the number of locations it owns. Yum! Brands, based in Louisville, Kentucky is ranked #201 on the FORTUNE 500 list with revenues of more than $13 billion. It was named among 100 Best Corporate Citizens by Corporate Responsibility Magazine in 2013. The restaurant brands - KFC, Pizza Hut and Taco Bell are leaders of the chicken, pizza and Mexican-style food categories globally (Yum! Brands Inc., 2014). With ...view middle of the document...
Below you see a chart that gives us detail on what the executives received for the 2013 fiscal year. The numbers are outstanding.
YUM BRANDS INC
Compensation by Company
For its 2013 fiscal year, YUM BRANDS INC, listed the following executives on its annual proxy statement to the SEC
Name/Title | Total Cash | Equity | Other | Total Compensation |
David C. Novak
Chairman and Chief Executive Officer of YUM | $2,389,600 | $6,824,174 | $776,268 | $9,990,042 |
Jing-Shyh S. Su
Vice Chairman of the Board of YUM Chairman and Chief Executive Officer of YUM Restaurants China | $1,714,790 | $2,107,417 | $5,768,264 | $9,590,471 |
Chief Executive Officer of Taco Bell | $2,261,625 | $1,527,574 | $238,737 | $4,027,936 |
Chief Executive Officer of Yum! Restaurants International | $1,534,875 | $1,527,574 | $309,198 | $3,371,647 |
Patrick J. Grismer
Chief Financial Officer of YUM | $916,337 | $1,879,236 | $179,480 | $2,975,053 |
There have also been reports that show Yum being accused of violating minimum-wage rules in China. The minimum wage paid in China can be as low as the equivalent of less than one U.S. dollar per hour. Due to these allegations and others Yum's chains were targeted in 2012 by U.S. fast-food workers. In November, the group named Fast Food Forward set up rallies and walkouts at different chain locations in New York City. The point was to their express support for higher wages and unionization, focusing on the demand for increased wages. This movement gained a great amount of support from the Service Employees International Union and spread to other cities like St. Louis, Seattle, Kansas City, Milwaukee, Detroit and Chicago. Focusing on a demand for an increase in industry wages to $15 an hour, the walkout movement, with substantial support from the Service Employees International Union, spread to other cities such as Chicago, St. Louis, Detroit, Seattle, Milwaukee and Kansas City. All of this led to the national day of strikes on August 29, 2013.
Above: New York City Council Speaker and mayoral candidate Christine Quinn (center) joins protest organizers outside the McDonald's restaurant on Fifth Avenue.
Just as any business, high turn-over looks bad on the annual reports. Some have more turn-over than others and you have to wonder why that is? Chipotle is one fast-food restaurant that does not have a major issue with turn-over. Chipotle owns and operates each of its stores which allows them to build on quality management from within. They believe in encouraging and empowering their employees and see the value of promoting the committed workers rather than hire from the outside. Chipotle has relied on internal promotions to staff about 85% of its salaried management and about 96% of its hourly management. They encourages a culture based on advancement through teamwork. This provides a clear direction of where the employees can go on the ladder of success and creates loyalty and minimizes...