8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Aug 21, 2012)

Filed August 21, 2012For Securities:WDC

Summary

This 8-K filing from Western Digital Corporation (WDC), dated August 21, 2012, reports on the establishment of performance goals for cash bonus awards under the company's Incentive Compensation Plan (ICP) for the six-month period ending January 1, 2013. The Compensation Committee has set specific earnings per share (EPS) targets for the CEO, President, and CFO, and operating income targets for other named executive officers. These goals, along with non-financial and strategic objectives, will determine bonus payouts ranging from 0% to 200% of target awards.

Key Highlights

  • 1Western Digital established performance goals for executive cash bonuses under the Incentive Compensation Plan (ICP) for the six-month period ending January 1, 2013.
  • 2The Compensation Committee set specific financial performance metrics for executive officers.
  • 3CEO, President, and CFO performance will be measured against Earnings Per Share (EPS) goals.
  • 4Other named executive officers' performance will be measured against Operating Income goals.
  • 5Bonus payout percentages can range from 0% to 200% based on achievement of these goals.
  • 6Non-financial, strategic, and individual performance factors will also be considered in bonus determinations.
  • 7Target bonus percentages for executives range from 85% to 150% of their semi-annual base salary.

Frequently Asked Questions

The primary purpose of this 8-K filing is to inform investors about the performance goals set by Western Digital's Compensation Committee for executive cash bonus awards under the Incentive Compensation Plan for the six-month period ending January 1, 2013.

Executive bonuses will be determined based on the company's achievement of specific financial performance goals (EPS for top executives, Operating Income for others), as well as non-financial and strategic operating objectives, business and industry conditions, and individual/business group performance. The payout can range from 0% to 200% of target bonus.

The Chief Executive Officer, President, and Chief Financial Officer's bonuses will be tied to Earnings Per Share (EPS) goals. Other named executive officers' bonuses will be linked to Operating Income goals.

The performance period for these cash bonus awards covers six months, beginning June 30, 2012, and ending January 1, 2013.