Yum China Holdings, Inc. (NYSE:YUMC) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On August 28, 2017, the Board of Directors (the “Board”) of Yum China Holdings, Inc. (the “Company”) appointed Jacky Lo, who currently serves as the Company’s Interim Chief Financial Officer, to the position of Chief Financial Officer, effective September 1, 2017.

Mr. Lo, age 40, has been serving as Interim Chief Financial Officer and Treasurer of the Company since June 2017 and as Vice President, Controller and Principal Accounting Officer of the Company since March 2017, and he will continue to serve as Treasurer, Controller and Principal Accounting Officer while serving as the Company’s Chief Financial Officer. Mr. Lo joined Yum! Restaurants China, a division of Yum! Brands, Inc. (“YUM”), in August 2016 as Vice President, Finance. Prior to joining YUM, Mr. Lo worked for Ernst & Young for 15 years, including most recently as Partner and the Deputy Director in the Asia Pacific Capital Markets Center of Ernst & Young’s Professional Practice Group, specializing in U.S. generally accepted accounting principles, SEC reporting and Sarbanes Oxley compliance requirements. Mr. Lo is a certified public accountant in Texas and a member of both the American Institute of Certified Public Accountants and the Hong Kong Institute of Certified Public Accountants.

In connection with the appointment, the Compensation Committee of the Board approved an increase in Mr. Lo’s annual base salary from HK$ 2,571,600 to HK$ 4,524,000, and an increase in his annual performance-based bonus target from 50% to 70% of his annual base salary. to the Company’s long-term incentive program, in 2018, Mr. Lo will also be eligible to receive stock appreciation rights (“SARs”) with a grant date face value of US$ 2,000,000. The SARs willhave a ten-year term and vest in equal annual installments on each of the first four anniversaries of the date of grant, subject to Mr. Lo’s continued employment through the applicable vesting date.

From the effective date of the appointment, Mr. Lo will be responsible for his China individual income tax and tax of other countries if applicable. The additional cash payment of HK$ 78,000 per month to Mr. Lo while acting as the Company’s interim Chief Financial Officer will cease from the effective date of the appointment.

A copy of the press release announcing the appointment described in Item 5.02 is attached as Exhibit 99.1 to this Current Report on Form 8-K.

The following exhibits are furnished with this report:

Yum China Holdings, Inc. ExhibitEX-10.1 2 yumc-ex101_6.htm EX-10.1 yumc-ex101_6.htm   Exhibit 10.1 August 28,…To view the full exhibit click here
About Yum China Holdings, Inc. (NYSE:YUMC)
Yum China Holdings, Inc. is a restaurant company with approximately 7,200 restaurants. The Company’s restaurant base consists of restaurant brands, including KFC, Pizza Hut Casual Dining, Pizza Hut Home Service, East Dawning and Little Sheep. The Company’s segments are KFC, Pizza Hut Casual Dining and All Other Segments, which include Pizza Hut Home Service, East Dawning and Little Sheep. KFC is the Quick-Service Restaurant (QSR) brand in China. In addition to original recipe chicken, KFC in China has a menu featuring pork, beef, seafood, rice dishes, fresh vegetables, soups, breakfast, desserts, and many other products, including coffee. Pizza Hut Casual Dining is the Casual Dining Restaurant (CDR) brand. Little Sheep is a casual-dining brand. Little Sheep specializes in Hot Pot cooking. East Dawning is a Chinese food quick-service restaurant brand, primarily located in coastal cities. As of December 31, 2015, KFC operates over 5,000 restaurants in over 1,100 cities across China.