Yum! Brands (YUM) - Get Report, owner of restaurants KFC, Pizza Hut, Taco Bell and Habit Burger Grill, said Monday that CEO David Gibbs will forego his 2020 salary to help fund $1,000 bonuses for the fast food company's roughly 1,200 restaurant general managers and for its employee relief fund for those affected by the coronavirus.
The Louisville, Kentucky-based company said in a regulatory filing that the bonuses were intended to acknowledge the general managers' efforts "managing teams and business continuity affected by COVID-19."
Shares were up slightly Monday to $68.54.
The Yum! Brands Foundation Global Employee Medical Relief Fund will provide financial hardship grants to those directly affected by the coronavirus, including company and franchise restaurant employees who have been diagnosed with the deadly disease or who are caring for someone with a confirmed diagnosis, "as well as other front-line workers and those facing food insecurity."
Yum! said it intends to grow this medical relief fund through voluntary donations.
In 2018, Gibbs, who was named CEO in 2019, made about $5.1 million in total compensation, with $890,769 million in salary, $1.5 million as a bonus, $1.4 million in stock options, and $1.4 million in stock.
In February, the company said that its fiscal first quarter would be “significantly impacted” by the coronavirus in China. Since then shutdowns have hit restaurants throughout the world.
The company said roughly 95% of its restaurants in the country are either "partially or fully open now," as businesses slowly reopen and people go back to work. Closings peaked in February, when 35% of its restaurants in China had shut down due to the coronavirus,.
New, locally generated cases of Covid-19 in China have been on the decline, with most of the new infections attributed to students and others returning from overseas.