Summary
Western Digital Corporation (WDC) filed an 8-K on January 26, 2015, reporting on the Compensation Committee's decisions regarding incentive bonus awards for executive officers for the six-month period ended January 2, 2015. The filing confirms that performance goals were assessed and payout rates were determined under the company's Incentive Compensation Plan (ICP). While the plan allowed for bonuses ranging from 0% to 200% of target opportunities, the Compensation Committee made an incremental upward adjustment for Mr. Murphy, resulting in a specific bonus payout.
Key Highlights
- 1The filing relates to incentive compensation payouts for the six-month period ending January 2, 2015.
- 2The Compensation Committee of Western Digital determined the achievement and payout rates for performance goals under the Incentive Compensation Plan (ICP).
- 3Executive officers were eligible for bonuses ranging from 0% to 200% of their target bonus opportunity.
- 4The Compensation Committee approved an upward adjustment to the payout rate for Mr. Murphy.
- 5Mr. Murphy received an ICP bonus of $343,750 for the specified performance period.
- 6The report confirms the discretionary authority of the Compensation Committee to adjust bonus payouts based on individual and business group performance.
Frequently Asked Questions
The main purpose of this 8-K filing is to report on the decisions made by Western Digital's Compensation Committee regarding the incentive bonus awards for its executive officers for the six-month performance period ending January 2, 2015.
Mr. Murphy, an executive officer, received a specific bonus payout of $343,750 for the performance period.
The Incentive Compensation Plan (ICP) is a company plan that allows executive officers to receive bonus awards based on the company's performance during a specified period, measured against pre-established goals. The payout can range from 0% to 200% of the executive's target bonus opportunity and can be adjusted at the Compensation Committee's discretion.
While company performance against pre-established goals was the primary measure, the Compensation Committee also had the discretion to adjust the payout rate upward or downward based on the executive's individual performance and their respective business group's performance. In Mr. Murphy's case, an incremental upward adjustment was approved.