Summary
Workday, Inc. (WDAY) filed an 8-K on March 16, 2020, disclosing a decision by its Board of Directors to approve a one-time cash bonus for its employees. This bonus is intended to support active employees during the unprecedented challenges posed by the COVID-19 outbreak. The bonus is equivalent to two weeks of pay for most employees, excluding vice presidents and above, as well as certain senior individual contributors. This initiative is expected to impact Workday's financial performance by adding approximately $80 million to expenses in the first fiscal quarter ending April 30, 2020, and for the full fiscal year 2021. This expense was not included in the company's previously issued guidance on February 27, 2020. Investors should note this additional expense when evaluating the company's near-term financial outlook.
Key Highlights
- 1Workday approved a one-time cash bonus for employees in response to the COVID-19 outbreak.
- 2The bonus is equivalent to two weeks of pay for eligible employees.
- 3Certain senior employees (VP and above, senior individual contributors) are excluded from the bonus.
- 4The bonus is expected to be paid during the first fiscal quarter ending April 30, 2020.
- 5The total estimated cost of the bonus program is approximately $80 million.
- 6This $80 million expense was not factored into previous company guidance issued on February 27, 2020.
- 7The information is provided under Regulation FD Disclosure and is not deemed 'filed' for Section 18 purposes.