8-KLeadership Changes

WESTERN DIGITAL CORP 8-K Report, Executive Changes (Feb 5, 2015)

Filed February 5, 2015For Securities:WDC

Summary

This 8-K filing from Western Digital Corporation, dated February 5, 2015, primarily addresses the establishment of performance goals for executive incentive compensation. The Compensation Committee of the Board of Directors set specific financial targets for the six-month period ending July 3, 2015, under the Incentive Compensation Plan (ICP). For the CEO, CFO, and EVP of Strategy & Corporate Development, the primary financial metric is earnings per share (EPS). For other named executive officers, operating income is the selected financial performance goal. The established goals correspond to bonus payouts ranging from 0% to 200% of the target bonus, with the final payout also subject to discretionary factors, including non-financial strategic objectives and overall company performance.

Key Highlights

  • 1Western Digital Corporation (WDC) filed an 8-K on February 5, 2015.
  • 2The filing details the establishment of performance goals for the Incentive Compensation Plan (ICP) for the period January 3, 2015, to July 3, 2015.
  • 3The Compensation Committee of the Board of Directors set these performance goals.
  • 4Earnings per share (EPS) is the financial goal for the CEO, CFO, and Executive Vice President, Strategy & Corporate Development.
  • 5Operating income is the financial goal for other named executive officers.
  • 6Performance goals are structured to allow for bonus payouts ranging from 0% to 200% of the target bonus.
  • 7Actual bonus payouts are also influenced by discretionary factors, including non-financial strategic objectives and overall business/industry conditions.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose the performance goals set by Western Digital's Compensation Committee for its executive officers and certain other employees under the company's Incentive Compensation Plan (ICP) for the six-month period ending July 3, 2015.

For the CEO, CFO, and EVP of Strategy & Corporate Development, the bonus will be primarily based on achieving specific earnings per share (EPS) targets. For other named executive officers, the bonus will be tied to achieving specific operating income targets.

The potential bonus payout under the ICP can range from 0% to 200% of each executive's target bonus, depending on the company's performance against the established financial goals and other discretionary factors.

Yes, the Compensation Committee can also consider discretionary factors such as non-financial and strategic operating objectives, overall company performance, individual performance, business group performance, and changes in business or industry conditions when determining the final bonus payout.