8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Feb 10, 2014)

Filed February 10, 2014For Securities:WDC

Summary

Western Digital Corporation (WDC) filed an 8-K on February 10, 2014, reporting on the establishment of performance goals for its Incentive Compensation Plan (ICP) for the six-month period from December 28, 2013, to June 27, 2014. This filing is primarily focused on executive compensation and outlines the metrics and targets that will determine cash bonus awards for the company's senior leadership and other key employees. The Compensation Committee has set specific financial performance goals, namely earnings per share (EPS) for the CEO and CFO, and operating income for other named executive officers. The potential bonus payout is tied to the achievement of these goals, with payouts ranging from 0% to 200% of the target bonus, depending on the company's performance. Discretionary factors, including non-financial objectives and market conditions, may also influence the final bonus amounts.

Key Highlights

  • 1Establishment of performance goals for the six-month Incentive Compensation Plan (ICP) period (December 28, 2013 - June 27, 2014).
  • 2CEO and CFO performance goals tied to Earnings Per Share (EPS).
  • 3Other named executive officers' performance goals tied to Operating Income.
  • 4Potential cash bonus payouts range from 0% to 200% of the target bonus.
  • 5Bonus awards are contingent upon achieving pre-established financial goals.
  • 6Discretionary factors, including non-financial objectives and business conditions, can influence bonus amounts.
  • 7Target bonuses for executive officers are set as a percentage of semi-annual base salary, ranging from 85% to 150%.

Frequently Asked Questions

The primary purpose of this 8-K filing is to inform investors about the performance metrics and targets set by Western Digital's Compensation Committee for its executive and employee incentive compensation plan for the period from late 2013 to mid-2014. It outlines how executive bonuses will be determined based on financial and strategic objectives.

For the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), Earnings Per Share (EPS) is the selected financial performance goal. For other named executive officers, Operating Income is the primary financial performance metric.

The potential cash bonus payout under the ICP can range from 0% to 200% of an executive's target bonus, depending on the company's achievement against the established performance goals. The Compensation Committee has the discretion to adjust these payouts based on various factors.

No, while financial performance is a key driver, bonus payouts are also subject to discretionary factors. These include the company's achievement of non-financial and strategic operating objectives, as well as consideration of overall business and industry conditions and individual/business group performance.