8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Apr 1, 2010)

Filed April 1, 2010For Securities:WDC

Summary

This Form 8-K filing from Western Digital Corp. (WDC) on March 31, 2010, reports the departure of its Senior Vice President and Chief Technology Officer, Dr. Hossein M. Moghadam, effective March 31, 2010. Dr. Moghadam, who is retiring after nearly a decade leading the company's advanced technology initiatives, will receive a separation package including a lump sum payment of $820,000, a pro-rata bonus payment of $76,875, and continued COBRA premium payments for 18 months. Additionally, his outstanding stock options will fully vest and remain exercisable for three years post-separation. The company has appointed Dr. William Cain, a senior technologist from Dr. Moghadam's team, to lead future advanced technology efforts. Investors should note that this executive change signifies a transition in technological leadership. The financial implications of Dr. Moghadam's departure are primarily related to his severance package and accelerated stock option vesting, which are detailed in the filing. The company anticipates filing the full Separation Agreement as an exhibit to its upcoming 10-Q report.

Key Highlights

  • 1Dr. Hossein M. Moghadam, Senior Vice President and Chief Technology Officer, is retiring and departing from Western Digital.
  • 2Dr. Moghadam's departure is effective March 31, 2010, after nearly 10 years with the company.
  • 3Dr. Moghadam will receive a separation package totaling $820,000 in lump sum payment and $76,875 as a pro-rata bonus.
  • 4Western Digital will cover Dr. Moghadam's COBRA premiums for 18 months.
  • 5Dr. Moghadam's outstanding stock options will fully vest and remain exercisable for three years following his separation.
  • 6Dr. William Cain, a senior technologist from Dr. Moghadam's team, will assume leadership of advanced technology efforts.
  • 7The full details of the Separation and General Release Agreement are expected to be filed with the company's Form 10-Q for the quarter ended April 2, 2010.

Frequently Asked Questions

This filing is primarily to report the departure of Dr. Hossein M. Moghadam, Senior Vice President and Chief Technology Officer, who is retiring from Western Digital. It details the terms of his separation agreement and the transition of his responsibilities.

Dr. Moghadam is entitled to a lump sum payment of $820,000, a pro-rata bonus payment of $76,875, and has his company-provided medical/dental/vision coverage continued via COBRA payments for up to 18 months. Additionally, all his stock options will vest and become exercisable.

Dr. William Cain, who was a senior technologist on Dr. Moghadam's team, will lead Western Digital's advanced technology efforts moving forward.

Dr. Moghadam's outstanding stock options will automatically vest and become fully exercisable, and will remain exercisable for three years post-separation. This means a significant number of previously unexercisable options will become available to him, which could potentially lead to them being exercised in the future.