Western Digital insider reports tax share withholding
Western Digital Chief of Global Operations Vidyadhara K. Gubbi reported routine equity compensation-related transactions.
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Form Type
4
Rhea-AI Filing Summary
Western Digital Chief of Global Operations Vidyadhara K. Gubbi reported routine equity compensation-related transactions. On 2026-06-03, 13.3669 dividend equivalent rights were converted into the same number of common shares in connection with restricted stock unit vesting, while 1,764 shares were withheld to cover tax obligations. After these transactions, Gubbi directly held 83,403 shares of common stock and 223.0825 dividend equivalent rights.
Insider Trade Summary
13.3669 shares exercised/converted
Exercise
3 txns
Insider
Gubbi Vidyadhara K
Role
Chief of Global Operations
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Dividend Equivalent Rights | 13.3669 | $0.00 | $0.00 |
| Exercise | Common Stock | 13 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 1,764 | $594.11 | $1.05M |
Holdings After Transaction:
Dividend Equivalent Rights — 223.0825 contracts (Direct);
Common Stock — 83,403 shares (Direct)
Footnotes (2)
- F1. The dividend equivalent rights were converted into, and paid in the form of, shares of the Issuer's common stock on a one-for-one basis in connection with the vesting of restricted stock units to which the dividend equivalent rights relate. A cash amount was also paid to the holder to settle a fractional dividend equivalent right.
- F2. Payment of tax obligation by withholding securities incident to the vesting of securities in accordance with Rule 16b-3(e).
Key Figures
Tax withholding shares: 1,764 shares
Withholding price: $594.11/share
Shares after transactions: 85,167 shares
+2 more
5 metrics
Tax withholding shares
1,764 shares
Shares withheld to satisfy tax obligation on 2026-06-03
Withholding price
$594.11/share
Value used for tax-withholding disposition of common stock
Shares after transactions
85,167 shares
Direct common stock holdings following 2026-06-03 activity
Dividend equivalent rights converted
13.3669 rights
Converted one-for-one into common stock upon RSU vesting
Dividend equivalent rights remaining
223.0825 rights
Dividend equivalent rights position after reported transactions
Key Terms
Dividend Equivalent Rights, restricted stock units, Rule 16b-3(e)
3 terms
Dividend Equivalent Rights financial
"The dividend equivalent rights were converted into, and paid in the form of, shares"
Dividend equivalent rights are promises that mirror the cash payments shareholders get from a company’s profits, but they are paid to holders of certain awards (like stock options or restricted stock units) rather than to actual shares. Think of them as a paycheck top‑up that matches dividends while the award is not yet a real stock, and they matter to investors because they add to employee compensation costs and potential share dilution, affecting company profitability and per‑share value.
restricted stock units financial
"in connection with the vesting of restricted stock units to which the dividend equivalent rights relate"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
Rule 16b-3(e) regulatory
"Payment of tax obligation by withholding securities incident to the vesting of securities in accordance with Rule 16b-3(e)."
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transactions did Western Digital (WDC) report for Vidyadhara K. Gubbi?
Western Digital reported compensation-related transactions for Vidyadhara K. Gubbi. Dividend equivalent rights converted into common stock upon restricted stock unit vesting, and shares were withheld to satisfy taxes, reflecting routine administrative activity rather than open-market buying or selling.
What are dividend equivalent rights in Western Digital’s Form 4 for WDC?
Dividend equivalent rights give holders credits equivalent to dividends on underlying shares. In this filing, 13.3669 rights were converted and paid in shares of Western Digital common stock on a one-for-one basis when related restricted stock units vested, plus cash for a fractional right.
Were Vidyadhara K. Gubbi’s Western Digital transactions open-market buys or sells?
The transactions were not open-market buys or sells. They involved conversion of dividend equivalent rights into shares and withholding of 1,764 shares to pay taxes on vested securities, a routine administrative process under Rule 16b-3(e) rather than discretionary trading in Western Digital stock.
What does Rule 16b-3(e) mean in Western Digital’s insider filing?
Rule 16b-3(e) allows issuers to withhold shares to cover insiders’ tax obligations on equity awards. In this case, Western Digital withheld 1,764 shares from Vidyadhara K. Gubbi upon vesting, treating the disposition as tax payment instead of an open-market sale.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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