8-KEarnings & ResultsLeadership ChangesRegulation FD+1

WESTERN DIGITAL CORP 8-K Report, Financial Results (Jul 6, 2016)

Filed July 6, 2016For Securities:WDC

Summary

Western Digital Corporation (WDC) filed an 8-K on July 6, 2016, primarily to announce a significant change in its Chief Financial Officer role and to provide preliminary financial results for the fourth fiscal quarter ended July 1, 2016. Olivier Leonetti will be departing as CFO effective September 1, 2016, after a transition period. Mark Long, currently the Executive Vice President and Chief Strategy Officer, has been appointed as the new CFO and Chief Strategy Officer, effective September 1, 2016. He will assume an interim role as EVP, Finance and Chief Strategy Officer immediately to ensure a smooth handover. This executive transition comes with adjustments to Mr. Long's compensation package, including a base salary increase, a higher target annual bonus, and significant long-term incentive equity awards. The filing also incorporates by reference a press release containing preliminary financial results for the fourth quarter, which investors should review for an early indication of the company's recent performance. It's important to note that the financial results and the press release are not considered "filed" under Section 18 of the Exchange Act.

Key Highlights

  • 1Chief Financial Officer Transition: Olivier Leonetti is departing as CFO on September 1, 2016, after assisting with the transition.
  • 2New CFO Appointment: Mark Long, currently EVP and Chief Strategy Officer, will become the new CFO and Chief Strategy Officer effective September 1, 2016.
  • 3Interim Role for New CFO: Mark Long takes on the title of EVP, Finance and Chief Strategy Officer immediately (July 6, 2016) to facilitate the transition.
  • 4Executive Compensation Adjustment: Mark Long's compensation package has been revised to include a higher base salary, increased bonus target, and substantial long-term equity awards.
  • 5Preliminary Q4 Fiscal 2016 Results: The company issued preliminary financial results for the fourth fiscal quarter ended July 1, 2016, via an attached press release.
  • 6No Material Related-Party Transactions: The appointment of Mark Long involves no disclosed material direct or indirect interest in related-party transactions.

Frequently Asked Questions

The 8-K filing states that Olivier Leonetti will leave his position as Chief Financial Officer effective September 1, 2016. While the filing announces his departure, it does not provide specific reasons for his exit.

Mark Long has a strong background in strategy, corporate development, and finance, having served as EVP, Chief Strategy Officer since August 2015 and previously in various strategic roles, including at HGST. His compensation package has been adjusted to reflect his new CFO role, including an increase in his annual base salary to $625,000, a target annual bonus opportunity of 110% of base salary, and significant long-term incentive equity awards valued at approximately $4.5 million in fiscal year 2017.

The preliminary financial results for the fourth fiscal quarter ended July 1, 2016, were announced in a press release issued on July 6, 2016. This press release is attached as Exhibit 99.1 to the 8-K filing and is incorporated by reference.

No, in accordance with General Instruction B.2 of Form 8-K, the information concerning the preliminary financial results (Item 2.02) and the press release (Item 7.01) are not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor are they subject to the liabilities of that section, unless expressly incorporated by reference into a registration statement or other filing.