8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Jul 23, 2013)

Filed July 23, 2013For Securities:WDC

Summary

This 8-K filing from Western Digital Corporation, dated July 23, 2013, announces key adjustments to executive compensation. Specifically, the Compensation Committee of the Board of Directors approved salary increases for Wolfgang Nickl, EVP and CFO, and Michael Cordano, President of HGST Subsidiary. Mr. Nickl's annual base salary was raised from $450,000 to $500,000, while Mr. Cordano's increased from $600,000 to $700,000. Furthermore, the filing details bonus payouts under the Company's Incentive Compensation Plan (ICP) for the six-month period ending June 28, 2013. Both Mr. Nickl and Mr. Cordano received upward adjustments to their bonus payouts in recognition of their performance during this period. Mr. Nickl was awarded a bonus of $313,788, and Mr. Cordano received a bonus of $500,000. These adjustments reflect the company's recognition of their contributions and performance.

Key Highlights

  • 1Western Digital Corporation's Compensation Committee approved salary increases for two key executives.
  • 2Wolfgang Nickl, EVP and CFO, received a base salary increase from $450,000 to $500,000.
  • 3Michael Cordano, President of HGST Subsidiary, had his base salary increased from $600,000 to $700,000.
  • 4Bonus payments under the Incentive Compensation Plan (ICP) for the period ending June 28, 2013, were finalized.
  • 5Wolfgang Nickl received an ICP bonus of $313,788.
  • 6Michael Cordano received an ICP bonus of $500,000.
  • 7The bonus amounts reflect upward adjustments due to performance recognition.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose material changes in executive compensation, specifically salary adjustments and bonus payouts for two key executives, Wolfgang Nickl and Michael Cordano.

The filing states that the Compensation Committee of the Board of Directors approved the increases. While specific reasons beyond recognition of their roles are not detailed, such adjustments are typically made to ensure competitive compensation, reflect increased responsibilities, or acknowledge strong performance.

The ICP is the company's bonus program for executive officers. The bonus payout for the six-month period ending June 28, 2013, was based on pre-established company performance goals, with potential for upward or downward adjustments based on individual and business group performance. The Compensation Committee approved upward adjustments for both Mr. Nickl and Mr. Cordano, recognizing their performance during the period.

For Wolfgang Nickl, the bonus of $313,788 represents approximately 63% of his new annual base salary of $500,000. For Michael Cordano, the bonus of $500,000 represents approximately 71% of his new annual base salary of $700,000. These percentages indicate a substantial portion of their total potential compensation comes from performance-based incentives.