8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Aug 12, 2008)

Filed August 12, 2008For Securities:WDC

Summary

This 8-K filing from Western Digital Corporation (WDC) on August 11, 2008, primarily details adjustments to the company's executive compensation structure. The Compensation Committee established specific performance goals for the Incentive Compensation Plan (ICP) for the latter half of 2008, focusing on earnings per share (EPS) as the key financial metric. This plan allows for bonus payouts ranging from 0% to 200% of target bonuses, based on EPS achievement and other strategic objectives. Furthermore, the filing announces a significant increase in the annual base salary for Timothy M. Leyden, the Executive Vice President and Chief Financial Officer, from $450,000 to $550,000, effective August 11, 2008. These changes indicate a focus on aligning executive incentives with financial performance and retaining key leadership during this period.

Key Highlights

  • 1Western Digital established performance goals for its Incentive Compensation Plan (ICP) for the six-month period ending December 26, 2008.
  • 2Earnings per share (EPS) is the primary financial performance goal for the ICP, with payouts ranging from 0% to 200% of target bonuses.
  • 3Bonus payouts will also consider non-financial and strategic operating objectives, industry conditions, and individual/business group performance.
  • 4Target bonuses for executive officers range from 75% to 125% of their semi-annual base salary.
  • 5The Compensation Committee approved a base salary increase for EVP and CFO Timothy M. Leyden.
  • 6Timothy M. Leyden's annual base salary increased from $450,000 to $550,000, effective August 11, 2008.

Frequently Asked Questions

The main purpose of this 8-K filing is to inform investors about the establishment of performance goals for Western Digital's executive bonus program and a specific salary increase for the Chief Financial Officer.

Executive bonuses will be determined based on the company's achievement of specific earnings per share (EPS) targets, with potential payouts ranging from 0% to 200% of the target bonus. Other factors like strategic objectives, industry conditions, and individual performance will also be considered.

The salary increase for the CFO, Timothy M. Leyden, to $550,000 annually, effective August 11, 2008, signals the company's commitment to retaining key executive talent and may reflect increased responsibilities or market adjustments for executive compensation.

No, this particular filing, under Item 5.02, specifically addresses the establishment of performance goals and a salary adjustment, not departures or new appointments of directors or officers.