8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Feb 15, 2011)

Filed February 15, 2011For Securities:WDC

Summary

Western Digital Corporation (WDC) filed an 8-K on February 15, 2011, reporting on the establishment of performance goals for its Incentive Compensation Plan (ICP) for the six-month period from January 1, 2011, to July 1, 2011. The Compensation Committee of the Board of Directors has designated earnings per share (EPS) as the primary financial performance metric for this period. The established EPS goals are designed to correspond to bonus payout percentages ranging from 0% to 200% of the target bonus. This filing indicates that WDC is continuing its practice of linking executive and employee compensation to company performance. Target bonuses for executive officers are set as a percentage of their semi-annual base salary, ranging from 75% to 150%. The actual payout will be determined by the ICP's funding percentage, which is based on achieving the EPS targets, alongside other discretionary factors such as strategic operating objectives, business and industry conditions, and individual/business group performance. This approach aims to incentivize management and key employees towards achieving specific financial and strategic outcomes.

Key Highlights

  • 1Establishment of performance goals for the Western Digital Corporation Incentive Compensation Plan (ICP) for the January 1, 2011 - July 1, 2011 period.
  • 2Earnings Per Share (EPS) designated as the key financial performance metric for the ICP.
  • 3Performance goals are tied to bonus payout percentages ranging from 0% to 200% of the target bonus.
  • 4Executive officer target bonuses range from 75% to 150% of their semi-annual base salary.
  • 5Actual bonus payouts will consider ICP funding percentages based on EPS achievement, strategic objectives, and market conditions.
  • 6Discretionary factors, including individual and business group performance, can also influence bonus awards.
  • 7The Compensation Committee has the authority to adjust bonus payouts based on overall performance.

Frequently Asked Questions

The main purpose of this 8-K filing is to inform investors that Western Digital Corporation's Compensation Committee has established the performance goals for executive and employee cash bonus awards under the Incentive Compensation Plan (ICP) for the first six months of 2011.

Earnings Per Share (EPS) is the selected financial performance goal for the six-month period ending July 1, 2011. The company has set specific EPS targets that will correspond to bonus payouts ranging from 0% to 200% of the target bonus.

Executive officers have a target bonus set as a percentage of their semi-annual base salary (75% to 150%). The actual bonus payout will be determined by the ICP's funding percentage (0-200% based on EPS achievement and other factors), multiplied by the executive's target bonus. The Compensation Committee also has discretion to adjust awards based on individual and business group performance.

Yes, while EPS is the primary financial goal, the Compensation Committee also considers non-financial and strategic operating objectives, overall business and industry conditions, and the performance of individual executives and business groups when determining the final bonus payout.