8-KLeadership ChangesRegulation FDExhibits & Filings

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Aug 17, 2010)

Filed August 17, 2010For Securities:WDC

Summary

Western Digital Corporation (WDC) filed an 8-K report on August 17, 2010, detailing significant executive leadership changes. The company announced the appointment of Timothy M. Leyden as Chief Operating Officer (COO) and Wolfgang U. Nickl as Senior Vice President and Chief Financial Officer (CFO), both effective August 16, 2010. Mr. Leyden, previously the CFO, has a long history with WDC, returning to a key operational role. Mr. Nickl, promoted from VP of Finance, brings continuity to the financial leadership. These appointments reflect an internal promotion strategy, aiming to leverage experienced personnel for critical executive functions. The report also outlines the establishment of performance goals for the first half of fiscal year 2011, focusing on earnings per share (EPS) as the primary financial metric for incentive compensation. This signals a continued emphasis on financial performance and operational efficiency for the company's leadership.

Key Highlights

  • 1Timothy M. Leyden appointed Chief Operating Officer (COO), effective August 16, 2010.
  • 2Wolfgang U. Nickl appointed Senior Vice President and Chief Financial Officer (CFO), effective August 16, 2010.
  • 3Mr. Leyden's compensation includes a $600,000 base salary and a target annual bonus of 100% of base salary.
  • 4Mr. Nickl's compensation includes a $350,000 base salary and a target annual bonus of 75% of base salary.
  • 5Performance goals for the first half of FY2011 Incentive Compensation Plan were established.
  • 6Earnings Per Share (EPS) is the primary financial performance goal for the FY2011 incentive compensation.
  • 7The press release announcing these appointments is attached as Exhibit 99.1.
  • 8No undisclosed related-party transactions or disqualifying events for the new officers were noted.

Frequently Asked Questions

Western Digital announced the appointment of Timothy M. Leyden as Chief Operating Officer and Wolfgang U. Nickl as Senior Vice President and Chief Financial Officer, both effective August 16, 2010. This represents a shift in leadership roles within the company's senior management.

Timothy M. Leyden, as COO, will receive an annual base salary of $600,000 and a target annual bonus of 100% of his base salary. Wolfgang U. Nickl, as CFO, will receive an annual base salary of $350,000 and a target annual bonus of 75% of his base salary.

For the first half of FY2011 (July 3, 2010, to December 31, 2010), the incentive compensation plan performance goals have been set. The primary financial performance goal is Earnings Per Share (EPS), with specific EPS targets corresponding to bonus achievement percentages ranging from 0% to 200%. Discretionary factors, non-financial objectives, and business conditions will also be considered.

The filing states that there are no arrangements or understandings with other persons related to their appointments, no family relationships with other directors or officers, and no material direct or indirect interest in any transactions that need to be disclosed under Regulation S-K. This suggests a clean appointment process.