8-KMaterial Agreements

WESTERN DIGITAL CORP 8-K Report, Material Agreement (Sep 20, 2006)

Filed September 20, 2006For Securities:WDC

Summary

Western Digital Corporation (WDC) filed an 8-K report on September 20, 2006, detailing the establishment of performance goals for a long-term target cash award granted to CEO John Coyne. This award, originally granted on May 11, 2006, has its payment contingent on the company achieving specific financial operating metrics over a defined Measurement Period from July 1, 2006, to June 27, 2008. The potential payout for this award can range from 0% to 200% of the $600,000 target amount, depending on Western Digital's performance against these predetermined goals. Investors should note that this filing clarifies the performance conditions and potential financial implications tied to executive compensation, highlighting a direct link between company performance and senior leadership incentives.

Key Highlights

  • 1Establishment of performance goals for a $600,000 long-term target cash award for CEO John Coyne.
  • 2The award payment is contingent on meeting predetermined financial operating metrics.
  • 3The performance measurement period is set from July 1, 2006, to June 27, 2008.
  • 4Payout can range from 0% to 200% of the target award based on performance achievement.
  • 5The award is subject to the terms and conditions of the executive award agreements.
  • 6This filing provides transparency on executive compensation linked to company performance.

Frequently Asked Questions

The main purpose of this filing is to inform investors about the specific performance goals that have been set for a significant long-term cash award granted to CEO John Coyne, and the conditions under which this award will be paid.

The potential financial impact depends on the company's performance. If the predetermined performance goals are met, the company could pay out up to 200% of the $600,000 target award, which is a maximum of $1.2 million. Conversely, if performance goals are not met, no portion of the award may be paid.

The company's performance will be evaluated over a Measurement Period that begins on July 1, 2006, and concludes on June 27, 2008. Payouts, if any, will occur after this period.

The performance goals were established by the Compensation Committee of Western Digital Corporation's Board of Directors.