8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Sep 17, 2008)

Filed September 17, 2008For Securities:WDC

Summary

This 8-K filing from Western Digital Corporation (WDC) primarily reports on adjustments to the compensation of its President and CEO, John F. Coyne. Effective September 22, 2008, Mr. Coyne's annual base salary will increase from $800,000 to $900,000. Additionally, his target bonus percentage under the Incentive Compensation Plan (ICP) is set to rise from 125% to 150% of his semi-annual base salary, applicable to the performance period beginning December 27, 2008. These changes in executive compensation, approved by the Compensation Committee, signal a potential increase in fixed and variable pay for the company's top executive. Investors may view this as a sign of confidence in leadership or as an indicator of anticipated company performance that warrants such adjustments. The filing provides transparency on executive remuneration, a key factor for stakeholders evaluating corporate governance and management incentives.

Key Highlights

  • 1Increase in CEO John F. Coyne's annual base salary from $800,000 to $900,000, effective September 22, 2008.
  • 2Enhancement of CEO's target bonus percentage under the Incentive Compensation Plan (ICP) from 125% to 150% of semi-annual base salary.
  • 3The increased target bonus percentage will be effective for the 6-month performance period starting December 27, 2008.
  • 4Compensation adjustments were approved by the Compensation Committee of the Board of Directors.
  • 5This filing is an 8-K Current Report, indicating a material event for the company.
  • 6Raymond M. Bukaty, Senior Vice President, General Counsel and Secretary, signed the report.

Frequently Asked Questions

The main purpose of this 8-K filing is to report on material changes to the compensation of Western Digital Corporation's President and CEO, John F. Coyne, as approved by the Compensation Committee.

The CEO's annual base salary is increasing by $100,000, from $800,000 to $900,000, effective September 22, 2008.

The target bonus percentage for the CEO under the Incentive Compensation Plan (ICP) is increasing from 125% to 150% of his semi-annual base salary. This change will apply to the performance period beginning December 27, 2008.

While this filing focuses on executive compensation, an increase in salary and bonus targets for the CEO can sometimes be interpreted as a signal of management's or the board's confidence in future company performance. However, the filing itself does not provide direct financial outlook information.