Effective today, Yum Brands CEO David Gibbs will forgo all salary for the balance of 2020, according to an SEC filing made by the company. Gibbs was set to earn a base salary this year of $900,000. The salary will be redirected to general managers and an employee relief fund.
Gibbs is the latest restaurant brand CEO to make such an announcement. Gene Lee, Darden’s CEO, said he was forgoing his salary during the coronavirus crisis. Danny Meyer, CEO of Union Square Hospitality Group, will also forgo his salary.
At Yum, the company will redirect Gibbs’ salary to one-time $1,000 bonuses to the nearly 1,200 restaurant general managers at company-owned KFC, Pizza Hut, Taco Bell and The Habit Burger Grill “to acknowledge their efforts managing teams and business continuity affected by COVID-19.”
The salary will also be redirected to Yum Brands Foundation Global Employee Medical Relief Fund. According to the filing, the fund will “provide financial hardship grants to those directly impacted by COVID-19, including company and franchise restaurant employees with a COVID-19 diagnosis or who are caring for someone with a confirmed diagnosis, as well as other front-line workers and those facing food insecurity. Yum! intends to grow this medical relief fund through voluntary donations.”
This announcement comes a few days after Taco Bell CEO, Mark King announced various initiatives to help employees and the community impacted by COVID-19. These initiatives included donating $1 million to No Kid Hungry, a national campaign to end childhood hunger in America, and donating excess food and produce to local food banks.
Contact Gloria Dawson at [email protected]
Follow her on Twitter: @GloriaDawson
For our most up-to-date coverage, visit the coronavirus homepage.
Update March 30, 2020: The article was updated to clarify that the $1,000 bonus will go to general managers of company-owned stores.