8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Jan 25, 2013)

Filed January 25, 2013For Securities:WDC

Summary

This 8-K filing from Western Digital Corp (WDC) on January 25, 2013, details the bonus payouts for its executive officers for the six-month period ending December 28, 2012. The Compensation Committee determined bonus payouts based on pre-established earnings per share and operating income goals, with payout rates generally ranging from 65% to 67.5% of target opportunities. In addition to the performance-based bonuses, the Compensation Committee approved supplemental bonus amounts for each of the named executive officers. This decision acknowledges the company's performance under challenging market conditions, its competitive standing, and progress on key initiatives related to cost reduction and product focus. Investors should note these payouts reflect management's performance during a specific period and are part of the executive compensation structure.

Key Highlights

  • 1Executive bonus payouts for the six-month period ending December 28, 2012, were determined.
  • 2Payout rates under the Incentive Compensation Plan (ICP) were 65% of target for Messrs. Milligan, Nickl, and Leyden.
  • 3Mr. Cordano received a payout rate of 67.5% of target under the ICP.
  • 4The Compensation Committee approved additional discretionary bonus amounts for each executive officer.
  • 5These additional amounts recognize the company's performance, competitive position, and strategic initiatives in a difficult market.
  • 6The filing specifies the individual additional bonus amounts for CEO Milligan ($125,000), CFO Nickl ($47,813), and Messrs. Leyden ($96,250) and Cordano ($82,500).

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose the bonus payouts to Western Digital Corporation's executive officers for the six-month period ending December 28, 2012. It details both the performance-based bonuses determined by company goals and additional discretionary amounts approved by the Compensation Committee.

Bonuses were calculated based on pre-established performance goals, specifically earnings per share (EPS) for the CEO and CFO, and operating income for other executive officers. The Compensation Committee determined achievement rates against these goals, leading to payout rates of 65% to 67.5% of target bonuses. Additionally, discretionary amounts were awarded to recognize overall company performance and strategic achievements.

The Compensation Committee approved additional bonus amounts to recognize the company's performance amidst challenging market conditions, its relative competitive standing, and the successful execution of key initiatives aimed at improving operating costs and streamlining product focus. These additional payments are separate from the performance-based ICP payouts.

The filing indicates that executive officers were eligible for bonuses under the Company's Incentive Compensation Plan (ICP) based on performance. The specific payout rates and the additional discretionary amounts reflect the Compensation Committee's assessment of performance for this particular six-month period and are part of the executive compensation structure.