Western Digital CEO settles taxes with 479 shares
Western Digital Corp Chief Executive Officer Irving Tan reported routine equity compensation activity involving company stock.
Rhea-AI Filing Summary
Western Digital Corp Chief Executive Officer Irving Tan reported routine equity compensation activity involving company stock. On May 25, 2026, 479 shares of common stock were disposed of at $484.28 per share to pay tax obligations tied to vesting securities, a non-market transaction under Rule 16b-3(e). The filing also shows the conversion of 30.3301 Dividend Equivalent Rights into the same number of common shares in connection with vesting restricted stock units, plus a small cash payment for a fractional right. Following these transactions, Tan directly held 597,004 shares of common stock, indicating the events primarily reflect compensation vesting and tax withholding rather than open-market trading.
Positive
- None.
Negative
- None.
Insider Trade Summary
30.3301 shares exercised/converted
Exercise
3 txns
Insider
Tan Irving
Role
Chief Executive Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Dividend Equivalent Rights | 30.3301 | $0.00 | $0.00 |
| Exercise | Common Stock | 30 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 479 | $484.28 | $232K |
Holdings After Transaction:
Dividend Equivalent Rights — 882.2734 contracts (Direct);
Common Stock — 597,004 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: 479 shares
Withholding price: $484.28 per share
Dividend Equivalent Rights converted: 30.3301 rights
+2 more
5 metrics
Tax-withholding shares
479 shares
Common stock withheld to pay tax obligation
Withholding price
$484.28 per share
Value used for tax-withholding disposition
Dividend Equivalent Rights converted
30.3301 rights
Converted one-for-one into common stock at vesting
Post-transaction common shares
597,483 shares
Direct holdings of common stock after transactions
Post-transaction DER balance
882.2734 rights
Remaining Dividend Equivalent Rights after conversion
Key Terms
Dividend Equivalent Rights, restricted stock units, fractional dividend equivalent right, tax obligation, +1 more
5 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"
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.
fractional dividend equivalent right financial
"A cash amount was also paid to the holder to settle a fractional dividend equivalent right"
tax obligation financial
"Payment of tax obligation by withholding securities incident to the vesting"
Rule 16b-3(e) regulatory
"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 did Western Digital (WDC) CEO Irving Tan report in this Form 4?
Irving Tan reported routine compensation-related activity, including tax withholding and the conversion of dividend equivalent rights into common stock. These actions reflect equity vesting and associated tax payments, not open-market buying or selling of Western Digital shares.
What are Dividend Equivalent Rights in Irving Tan’s Western Digital filing?
Dividend Equivalent Rights are compensation-linked derivatives that mirror dividends on underlying shares. In this case, 30.3301 rights were converted one-for-one into common stock when related restricted stock units vested, with a small cash payment used to settle a fractional right.
Did Irving Tan buy or sell Western Digital stock on the open market?
The reported transactions do not involve open-market purchases or sales. They consist of a tax-withholding disposition of shares and the conversion of dividend equivalent rights upon vesting of restricted stock units, both standard equity compensation events.
AI-generated analysis. How Rhea-AI works. Not financial advice.
