Western Digital Corporation · NASDAQ:WDC
Western Digital — Shareholder Meeting (September 2017)
19 slides from Western Digital's shareholder meeting presentation, Sep 18, 2017
Slide 1: Stockholder Update Fall 2017
Stockholder Update Fall 2017 ©2017 Western Digital Corporation or its affiliates. All rights reserved.
Slide 2: Forward-looking statements disclaimer
This presentation contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding: market trends, business strategy and growth opportunities; the anticipated benefits of the integration of HGST and SanDisk; our product portfolio and inves
Slide 3: Annual Meeting Voting Recommendations and Executive Summary
At our Annual Meeting on November 2, 2017, the Board is recommending shareholders vote in support of all five ballot items FOR electing 8 director nominees to our Board of Directors FOR highly performance-based named executive officer compensation program ANNUAL frequency of executive compensation a
Slide 4: A Global Storage Solutions Company
A Global Storage Solutions Company City Medical Industrial Autonomous Vehicles Machine Learning Mobile Home Rich base of comprehensive data storage technologies with more than 14,000 active patents worldwide In a strong strategic position to lead global evolution of broad-based and changing storage
Slide 5: Five-Pillar Strategy Capitalizes on Industry Trends
Five-Pillar Strategy Capitalizes on Industry Trends Several years ago, we anticipated meaningful industry shifts that would impact the hard drive industry and our management team established 5 strategic pillars to position WDC for the future Create optimal product mix for both client and enterprise
Slide 6: Our Strategic Evolution
Our Strategic Evolution Our strategic acquisitions and focused execution have positioned Western Digital to take advantage of the growing data storage market 2002-2007 HDD portfolio expansion HDD vertical integration Financial execution 2008-2015 HGST acquisition Customer focused engagement model HD
Slide 7: FY2017 Performance Validates Growth Strategy
FY2017 Performance Validates Growth Strategy Integration of Two Major Acquisitions Achieved ~$350 million of cost of revenue synergies and ~$350 million of operating expense synergies related to HGST integration Remain on track to achieve $800 million of annualized savings from HGST integration by t
Slide 8: Well Positioned for Data Storage Market Growth
Well Positioned for Data Storage Market Growth 4x Significant TAM Revenue Growth by FY20 Client Devices Client Solutions Data Center Devices Data Center Solutions $23B $4B $21B $16B $7B $8B $44B $34B Systems Flash HDD Innovation is enabling rapid data generation, driving demand for data storage, and
Slide 9: Executive Compensation Program Overview
Executive Compensation Program Overview Key Elements1 Performance Link Base Salary Competitive with market and industry norms Reflects individual performance, experience and future contributions Fixed compensation Short-Term Incentive Compensation Provides incentive to drive near-term financial goal
Slide 10: Fiscal 2017 Key Compensation Changes
Fiscal 2017 Key Compensation Changes Summary of Changes Base Salary Increased base salary for four NEOs All increases were in connection with promotions, increased responsibilities with business transformation, or to correct pay positioning Short-Term Incentive Increased target bonus level for one N
Slide 11: Compensation is Closely Aligned with Performance
CEO Pay2 $11.7M $10.5M $17.8M Compensation is Closely Aligned with Performance The high percentage of equity-based compensation to our CEO places a substantial portion of his compensation at risk based on Company and stock price performance CEO Pay vs. Performance 1 For fiscal years ended July 3, 20
Slide 12: Performance Incentive Plan Amendment
Performance Incentive Plan Amendment The Board recommends a vote FOR the Performance Incentive Plan Amendment We are seeking shareholder approval of an amendment to our Performance Incentive Plan Seeking an additional 14,000,000 shares Renewal of 162(m) performance criteria Other technical amendment
Slide 13: Board Composition Reflects our Evolving Business
The Board conducts size and composition evaluations at least annually to ensure it has individuals with the right skills and experience to exercise independent judgement in overseeing our business The Board developed a skills matrix to identify the skills and expertise of our current directors to th
Slide 14: Compensation and Governance Best Practices
Cap maximum payout levels under performance-based and incentive awards Strict executive stock ownership guidelines (5x base salary for CEO) Maintain a clawback policy Provide limited and modest perquisites No tax gross-up payments in connection with severance or change in control No automatic vestin
Slide 15: Appendix
Appendix ©2017 Western Digital Corporation or its affiliates. All rights reserved.
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation See DISCLAIMER on Safe Harbor | Disclaimers Forward-Looking Statements (slide 2) Reference ©2017 Western Digital Corporation or its affiliates. All rights reserved. WESTERN DIGITAL CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in millions, except
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation See DISCLAIMER on Safe Harbor | Disclaimers Forward-Looking Statements (slide 2) Reference ©2017 Western Digital Corporation or its affiliates. All rights reserved. To supplement the financial information presented in accordance with U.S. generally accepted accounting
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation See DISCLAIMER on Safe Harbor | Disclaimers Forward-Looking Statements (slide 2) Reference ©2017 Western Digital Corporation or its affiliates. All rights reserved. Acquisition-related charges. In connection with our business combinations, we incur expenses which we w
Slide 19: Delivering the possibilities of data
Insights Machine Learning Precise Predictions Real-Time Results Protection Automation Anywhere Anytime Analytics Context Aware ©2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential. Delivering the possibilities of data ©2017 Western Digital Corporation or its affilia
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