8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Feb 5, 2010)

Filed February 5, 2010For Securities:WDC

Summary

Western Digital Corporation (WDC) filed an 8-K on February 5, 2010, reporting on the establishment of performance goals for its Incentive Compensation Plan (ICP) for the six-month period from January 2, 2010, to July 2, 2010. The Compensation Committee of the Board of Directors designated Earnings Per Share (EPS) as the primary financial performance metric, with specific EPS targets set to determine bonus payout percentages ranging from 0% to 200%.

Key Highlights

  • 1WDC's Compensation Committee set performance goals for the ICP for a six-month period (January 2, 2010 - July 2, 2010).
  • 2The key financial performance goal for the ICP is Earnings Per Share (EPS).
  • 3Specific EPS targets are linked to bonus payout percentages, ranging from 0% to 200% of the target bonus.
  • 4Executive officers' target bonuses are set as a percentage of their semi-annual base salary, ranging from 75% to 150%.
  • 5Bonus funding can be interpolated between 0% and 200% based on EPS achievement.
  • 6Discretionary factors, including non-financial strategic objectives, business and industry conditions, and individual/business group performance, can also influence bonus awards.
  • 7The Compensation Committee retains discretion to adjust individual executive bonuses based on performance.

Frequently Asked Questions

This 8-K filing announces the establishment of performance goals for Western Digital Corporation's Incentive Compensation Plan (ICP) for the six-month period ending July 2, 2010. It outlines how executive bonuses will be determined based on financial and non-financial performance metrics.

The primary financial metric used to determine executive bonuses under the ICP for this period is Earnings Per Share (EPS). Specific EPS targets have been set to correspond with different bonus payout percentages.

Yes, bonuses can range from 0% to 200% of the target bonus. The actual payout is determined by the company's achievement against the pre-established EPS goals and can be interpolated within this range.

Yes, in addition to EPS achievement, the Compensation Committee will consider non-financial and strategic operating objectives, overall business and industry conditions, and individual and business group performance. The Committee also retains discretion to adjust individual bonuses.