8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Aug 6, 2014)

Filed August 6, 2014For Securities:WDC

Summary

This 8-K filing from Western Digital Corporation (WDC), dated August 5, 2014, primarily details adjustments to executive compensation. The Compensation Committee of the Board of Directors established performance goals for the Incentive Compensation Plan (ICP) for the latter half of 2014. Key financial metrics for bonus eligibility were set as earnings per share (EPS) for the CEO, CFO, and EVP of Strategy & Corporate Development, and operating income for other named executive officers. The ICP allows for cash bonus awards ranging from 0% to 200% of target bonuses, which are themselves based on a percentage of semi-annual base salary (ranging from 85% to 150%). These bonuses are contingent on achieving predetermined financial goals, as well as discretionary factors such as non-financial objectives, strategic initiatives, and overall business performance. Additionally, the filing notes an increase in the annual base salary for James Murphy, President of the WD Subsidiary, from $550,000 to $625,000, effective August 4, 2014.

Key Highlights

  • 1Western Digital (WDC) established performance goals for its Incentive Compensation Plan (ICP) for the six-month period ending January 2, 2015.
  • 2Executive bonus payouts will be determined by achieving specific Earnings Per Share (EPS) or Operating Income targets.
  • 3The ICP allows for bonus payouts ranging from 0% to 200% of the target bonus, based on performance against set goals.
  • 4Discretionary factors, including strategic objectives and business conditions, can also influence bonus awards.
  • 5The annual base salary for James Murphy, President of WD Subsidiary, was increased to $625,000 from $550,000.
  • 6The Compensation Committee retains the ability to adjust bonuses based on individual and business group performance.

Frequently Asked Questions

For the period from June 28, 2014, to January 2, 2015, the key financial performance metrics for executive bonuses are Earnings Per Share (EPS) for the CEO, CFO, and EVP of Strategy & Corporate Development, and Operating Income for other named executive officers.

The ICP allows for bonus payouts ranging from 0% to 200% of the executive's target bonus. The actual payout is determined by the company's performance against the established goals, interpolated between the minimum and maximum, and can be adjusted based on other factors.

Yes, the filing indicates that the annual base salary for James Murphy, President of the WD Subsidiary, was increased from $550,000 to $625,000, effective August 4, 2014.

Bonus awards are also influenced by discretionary factors, including the achievement of non-financial and strategic operating objectives, overall business and industry conditions, and the individual and business group performance of the executive.