8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Jun 15, 2007)

Filed June 15, 2007For Securities:WDC

Summary

This 8-K filing from Western Digital Corporation (WDC) on June 15, 2007, primarily details the establishment of performance goals for its Incentive Compensation Plan (ICP) for the second half of fiscal year 2007 (June 30, 2007 to December 28, 2007). The Compensation Committee has set earnings per share (EPS) as the key financial performance metric, with specific EPS targets linked to bonus payouts ranging from 0% to 200% of the target bonus. For executive officers, target bonuses are set as a percentage of their semi-annual base salary, ranging from 75% to 100%. The actual bonus funding will be determined by the company's EPS performance against these goals, interpolated between the specified targets. Additionally, the Compensation Committee retains discretion to adjust individual bonuses based on non-financial and strategic objectives, business conditions, and individual/business group performance, offering a blend of objective financial targets and subjective performance evaluation.

Key Highlights

  • 1Western Digital established performance goals for its Incentive Compensation Plan (ICP) for the six-month period from June 30, 2007, to December 28, 2007.
  • 2Earnings Per Share (EPS) has been designated as the primary financial performance goal for the ICP.
  • 3Bonus payouts are tied to specific EPS targets, with potential achievement levels ranging from 0% to 200% of the target bonus.
  • 4Executive officers have target bonuses set at 75% to 100% of their semi-annual base salary.
  • 5The Compensation Committee will consider a range of factors beyond EPS, including non-financial and strategic objectives, business conditions, and individual/group performance.
  • 6The Compensation Committee retains discretionary power to adjust executive bonuses based on overall performance.
  • 7The filing was made on June 15, 2007, and concerns events from June 12, 2007.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce the establishment of performance goals for Western Digital's Incentive Compensation Plan (ICP) for the second half of fiscal year 2007, specifically for the period between June 30, 2007, and December 28, 2007. It outlines how executive and employee bonuses will be determined based on company performance.

The key financial metric used to determine executive bonuses under the ICP for this period is Earnings Per Share (EPS). Specific EPS targets have been set, which will dictate the percentage of the target bonus that can be funded, ranging from 0% to 200%.

Yes, while EPS performance is the primary driver, the Compensation Committee has discretion to adjust executive bonuses upward or downward. This adjustment can be based on the achievement of non-financial and strategic operating objectives, changes in business and industry conditions, and the individual executive's and their business group's performance.

For executive officers, the target bonus is expressed as a percentage of their semi-annual base salary. These target bonuses currently range from 75% to 100%.