Summary
Western Digital Corp. (WDC) filed an 8-K on August 16, 2020, detailing the departure of Michael D. Cordano, formerly President and Chief Operating Officer. Mr. Cordano's employment terminated on August 14, 2020, following a management reorganization previously announced in April 2020. The company has entered into a Separation and General Release Agreement with Mr. Cordano, outlining the terms of his exit. This filing primarily focuses on the severance package provided to Mr. Cordano, which includes a substantial cash payment of $1.6 million, a pro-rata bonus, accelerated vesting of certain restricted stock units and performance stock units, and coverage for COBRA premiums. Investors should note that these payments are contingent upon Mr. Cordano's adherence to non-solicitation and cooperation provisions and his agreement not to revoke the separation agreement. The filing provides specific details on the timing and nature of these payments and equity awards.
Key Highlights
- 1Termination of Michael D. Cordano, former President and COO, effective August 14, 2020.
- 2Mr. Cordano's departure follows a management structure reorganization announced earlier in 2020.
- 3A Separation and General Release Agreement has been executed between WDC and Mr. Cordano.
- 4Severance package includes a $1.6 million lump sum payment.
- 5Pro-rata bonus payment of $115,384.62 is included.
- 6Accelerated and pro-rata vesting of outstanding unvested restricted stock units and performance stock units.
- 7Company will cover COBRA premiums for 18 months and provide outplacement services.