Summary
Western Digital Corporation (WDC) filed an 8-K on February 24, 2012, to report on the establishment of performance goals for its Incentive Compensation Plan (ICP) for the six-month period from December 31, 2011, to June 29, 2012. The Compensation Committee has set earnings per share (EPS) as the primary financial performance metric, with specific EPS targets corresponding to bonus payout percentages ranging from 0% to 200%.
Key Highlights
- 1Establishment of performance goals for the Western Digital Corporation Incentive Compensation Plan (ICP) for the period December 31, 2011, to June 29, 2012.
- 2Earnings per share (EPS) selected as the sole financial performance goal for cash bonus awards.
- 3Specific EPS targets established, correlating to bonus payouts between 0% and 200% of the target award.
- 4Executive officers' target bonuses are set as a percentage of their semi-annual base salary, ranging from 75% to 150%.
- 5The actual bonus payout will be based on the company's achievement against EPS goals, interpolated between defined targets.
- 6Discretionary factors, including non-financial objectives, strategic operating goals, and business/industry conditions, will also be considered by the Compensation Committee.
- 7Individual and business group performance may further adjust the final bonus amount for each executive.
Frequently Asked Questions
The primary purpose of this filing is to inform investors about the performance metrics and bonus structure set by Western Digital's Compensation Committee for its executive officers and certain other employees under the Incentive Compensation Plan (ICP) for a specific six-month period.
Earnings per share (EPS) has been designated as the key financial performance metric for determining executive bonuses during the specified performance period. The company's achievement against set EPS targets will directly influence the bonus payout.
Yes, while EPS is the primary financial goal, the Compensation Committee will also consider discretionary factors. These include the achievement of non-financial and strategic operating objectives, overall business and industry conditions, and the individual and business group performance of the executives.
The potential bonus payout can range from 0% to 200% of the executive's target bonus, which itself is a percentage of their semi-annual base salary (ranging from 75% to 150%). The final amount is subject to interpolation based on EPS achievement and further discretionary adjustments.