8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Dec 6, 2010)

Filed December 6, 2010For Securities:WDC

Summary

This 8-K filing from Western Digital Corporation (WDC), dated December 6, 2010, reports the departure of Martin Finkbeiner, Executive Vice President of Operations. The filing details the terms of his separation agreement, which includes a significant severance package. This event represents a change in key executive leadership within the company's operations division. Investors should note the financial implications of Mr. Finkbeiner's separation, including lump-sum payments, salary continuation, pro-rata bonus, continued health benefits, accelerated vesting of stock options and RSUs, and outplacement services. The total cost of these benefits, while disclosed, will impact the company's short-term expenses. The company has also secured non-solicitation and cooperation provisions from Mr. Finkbeiner, which are standard in such agreements.

Key Highlights

  • 1Western Digital Corporation (WDC) announced the departure of Martin Finkbeiner, Executive Vice President of Operations, effective December 1, 2010.
  • 2Mr. Finkbeiner entered into a Separation and General Release Agreement with the company.
  • 3The separation agreement includes a lump sum payment of $114,231.
  • 4Salary continuation of $37,500 per month for 24 months will be provided, contingent on no other employment.
  • 5A pro-rata bonus payment of $159,898 for the six-month bonus cycle ending December 31, 2010, is included.
  • 6Company-paid COBRA premiums for medical, dental, and vision coverage will extend for up to 18 months.
  • 7Outstanding stock options and restricted stock units held by Mr. Finkbeiner will vest as if he remained employed through June 1, 2011.
  • 8Western Digital will cover outplacement services up to a maximum cost of $25,000.

Frequently Asked Questions

The filing indicates that Martin Finkbeiner's employment as Executive Vice President, Operations, terminated effective December 1, 2010, under a Separation and General Release Agreement. The specific reasons for the departure are not detailed beyond the agreement terms.

Mr. Finkbeiner will receive a lump sum payment of $114,231, monthly salary continuation of $37,500 for 24 months (if unemployed), a pro-rata bonus of $159,898, continued COBRA payments for up to 18 months, accelerated vesting of equity awards, and outplacement services up to $25,000.

No, he will receive a pro-rata portion of his target bonus opportunity for the six-month bonus cycle ending December 31, 2010, amounting to $159,898, less standard withholdings.

The separation agreement involves significant payments and benefits for Mr. Finkbeiner, including salary continuation, bonus, and accelerated equity vesting. These costs will be reflected in the company's financial statements. The filing does not provide a total dollar amount for all separation costs but outlines the components.