8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Jan 25, 2008)

Filed January 25, 2008For Securities:WDC

Summary

Western Digital Corporation (WDC) filed an 8-K on January 25, 2008, reporting on executive bonus awards. The Compensation Committee of the Board of Directors authorized funding for the Incentive Compensation Plan (ICP) at 200% of each executive's target bonus for the six-month period ending December 28, 2007. This decision was based on the company's performance against pre-established earnings per share goals for that period. Furthermore, the Compensation Committee approved additional discretionary bonuses for specific executives in recognition of outstanding contributions. These additional bonuses acknowledge the management team's favorable financial performance, the achievement of key technology milestones, and the early-than-expected accretion of WD Media during the December quarter. These awards reflect strong performance and strategic achievements by the company and its leadership.

Key Highlights

  • 1Western Digital's Compensation Committee authorized maximum funding (200% of target) for the Incentive Compensation Plan (ICP) for the six-month period ending December 28, 2007.
  • 2The bonus payout is based on the company's performance against pre-established earnings per share (EPS) goals.
  • 3Additional discretionary bonuses were awarded to executives Mr. Leyden ($84,375), Mr. Moghadam ($75,000), and Mr. Bukaty ($75,000).
  • 4These additional bonuses recognize favorable financial performance during the period.
  • 5They also acknowledge the achievement of significant technology milestones.
  • 6The early accretion of WD Media during the December quarter, ahead of expectations, was another key factor for the additional bonuses.
  • 7The filing indicates strong management performance and successful execution of strategic objectives.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce the decision of Western Digital's Compensation Committee regarding executive bonus awards for the six-month period ending December 28, 2007, and to disclose additional discretionary bonuses granted to certain officers.

The general bonus awards under the Incentive Compensation Plan (ICP) were determined by the company's performance against pre-established earnings per share (EPS) goals. Additionally, discretionary bonuses were awarded based on overall favorable financial performance, achievement of technology milestones, and the early accretion of WD Media.

The filing states that the Compensation Committee authorized funding at 200% of each executive's target bonus, which is the maximum range provided in the Incentive Compensation Plan. However, individual awards could be subject to upward or downward adjustment based on individual and business group performance, at the discretion of the Committee.

Mr. Leyden, Mr. Moghadam, and Mr. Bukaty received additional bonuses of $84,375, $75,000, and $75,000, respectively. These were awarded in recognition of the management team's favorable financial performance, achievement of significant technology milestones, and WD Media reaching accretion ahead of expectations.