Increased Annual Base Salary for WD’s CEO, and president and COO

Western Digital Corporation published the following SEC filing on August 3, 016:

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Annual Base Salary Adjustment
On August 3, 2016, the compensation committee of the board of directors of Western Digital Corporation approved an increase in the annual base salary levels for Stephen Milligan, the company’s CEO, from $1,050,000 to $1,150,000, and Michael Cordano, the company’s president and COO, from $725,000 to $800,000.

Separation Agreement with Olivier Leonetti

As the company previously announced on July 6, 2016, he will leave his position as CFO, effective as of September 1, 2016, and continue in an advisory capacity with the company through October 1, 2016.

On August 3, 2016, the company and Leonetti entered into a separation and general release agreement pursuant to which he has agreed to comply with certain non-solicitation and cooperation provisions. The separation agreement also provides for a customary general release of claims. Pursuant to the separation agreement and applicable law, he has up to seven days to revoke the separation agreement.

If Leonetti does not revoke the separation agreement and complies with his obligations thereunder, he will be entitled to the following Tier I severance benefits, as set forth in the company’s executive severance plan, a copy of which is filed as Exhibit 10.1 to the company’s quarterly report on Form 10-Q for the fiscal quarter ended January 2, 2015, filed with the SEC on February 10, 2015:

• a lump sum payment of $1,000,000, less applicable taxes and withholding, which represents Leonetti’s monthly base salary multiplied by twenty-four, payable during the thirty-day period commencing on the Separation Date;
• a lump sum payment of $126,027, less applicable taxes and withholding, which represents Leonetti’s pro rata target bonus opportunity under the company’s short-term incentive program for the six-month bonus cycle ending December 30, 2016 (determined based on the number of days in the six-month bonus during which he was employed and assuming 100% of the performance targets subject to the bonus award are met regardless of actual funding by the company), payable during the thirty-day period commencing on the separation date;
• Leonetti’s then-outstanding unvested stock options and restricted stock units that are subject to time-based vesting will vest and become exercisable or payable, as applicable, to the extent such equity awards would have vested and become exercisable or payable, as applicable, if he had remained employed for an additional six months, subject to the terms and conditions of the stock incentive plan and award agreements applicable to such awards;
• Leonetti’s then-outstanding unvested performance stock units granted on August 4, 2015 will vest and become payable at the target number of units pursuant to the terms and conditions of Leonetti’s award agreement applicable to such award;
• a lump sum payment equal of $28,644, less applicable taxes and withholding, which represents an amount equivalent to Leonetti’s COBRA premiums for eighteen months following the separation date, payable during the thirty-day period commencing on the separation date; and
• outplacement services provided by a vendor chosen by Leonetti and approved by the company for up to twelve months following the separation date (with an estimated maximum value of $14,900).

Leonetti will also be entitled to receive a cash retention bonus of $350,000, less applicable taxes and withholding, subject to his continued employment and reasonable satisfactory performance of duties through the separation date.