8-KLeadership ChangesOther Events

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Dec 1, 2006)

Filed December 1, 2006For Securities:WDC

Summary

This Form 8-K filing from Western Digital Corporation (WDC) on December 1, 2006, primarily details executive compensation arrangements approved on November 27, 2006. The Compensation Committee granted stock options, restricted stock units, and long-term performance cash awards to key named executive officers, including the CFO, CTO, and General Counsel. These awards are designed to incentivize and retain top talent, with vesting schedules and performance metrics tied to the company's financial objectives. The stock options have an exercise price equal to the fair market value on the grant date, with a four-year vesting schedule. Restricted stock units vest 100% on the third anniversary of the grant date. The long-term performance cash awards have a performance period ending in June 2008, with payouts ranging from 0% to 200% of the target amount based on achieving specified financial operating metrics. Additionally, the company announced its 2006 Annual Meeting of Stockholders will be held on February 6, 2007.

Key Highlights

  • 1Western Digital Corp (WDC) approved executive compensation packages including stock options, restricted stock units, and performance-based cash awards for key officers on November 27, 2006.
  • 2Named executive officers receiving awards include Stephen D. Milligan (CFO), Hossein M. Moghadam (CTO), and Raymond M. Bukaty (General Counsel).
  • 3Stock options have an exercise price equal to the fair market value on the grant date and vest over four years.
  • 4Restricted stock units vest entirely on the third anniversary of the grant date.
  • 5Long-term performance cash awards are tied to specific financial metrics over a period ending June 27, 2008, with potential payouts between 0% and 200% of the target.
  • 6The company announced its 2006 Annual Meeting of Stockholders is scheduled for February 6, 2007.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose the approval of new stock options, restricted stock units, and long-term performance cash awards for key executive officers of Western Digital Corporation, as determined by the Compensation Committee.

The stock options granted to the named executive officers have an exercise price equal to the fair market value of the company's common stock on November 27, 2006. They vest over a period of four years, with 25% vesting on the first anniversary of the grant date and the remainder vesting in equal quarterly installments over the subsequent three years.

The long-term performance cash awards are contingent upon the achievement of specific financial operating metrics over a performance period from July 1, 2006, to June 27, 2008. Payouts can range from 0% to 200% of the target award amount, based on the company's performance against these predetermined goals.

Western Digital Corporation's 2006 Annual Meeting of Stockholders is scheduled to be held on February 6, 2007.