Western Digital exec settles taxes with shares
Western Digital Corp's Chief of Global Operations, Gubbi Vidyadhara K, reported routine equity compensation activity involving tax withholding and dividend equivalents.
Rhea-AI Filing Summary
Western Digital Corp's Chief of Global Operations, Gubbi Vidyadhara K, reported routine equity compensation activity involving tax withholding and dividend equivalents. On common stock that vested, 4,595 shares were withheld to cover tax obligations, treated as a share disposition but not an open-market sale.
On the same date, dividend equivalent rights were converted into 34.8121 shares of common stock, and an additional 34 common shares were acquired through a derivative exercise at no cash exercise price. After these transactions, he directly holds 94,715 common shares and retains 254.8715 dividend equivalent rights.
Positive
- None.
Negative
- None.
Insider Trade Summary
34.8121 shares exercised/converted
Exercise
3 txns
Insider
Gubbi Vidyadhara K
Role
Chief of Global Operations
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Dividend Equivalent Rights | 34.8121 | $0.00 | $0.00 |
| Exercise | Common Stock | 34 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 4,595 | $374.11 | $1.72M |
Holdings After Transaction:
Dividend Equivalent Rights — 254.8715 contracts (Direct);
Common Stock — 94,715 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-withheld shares: 4,595 shares
Withholding reference price: $374.11 per share
Shares held after transactions: 99,310 shares
+3 more
6 metrics
Tax-withheld shares
4,595 shares
Common stock withheld to satisfy tax obligations on 2026-04-20
Withholding reference price
$374.11 per share
Price per share reported for 4,595-share tax withholding
Shares held after transactions
99,310 shares
Direct common stock ownership following reported Form 4 activity
Dividend equivalents converted
34.8121 rights
Dividend equivalent rights converted into common stock on a one-for-one basis
Dividend equivalents remaining
254.8715 rights
Dividend equivalent rights balance after the conversion transaction
Exercise price on awards
$0.00
Reported exercise or conversion price for certain equity-related transactions
Key Terms
Dividend Equivalent Rights, restricted stock units, Rule 16b-3(e), tax-withholding disposition
4 terms
Dividend Equivalent Rights financial
"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"
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)."
tax-withholding disposition financial
"Payment of tax obligation by withholding securities incident to the vesting of securities"
A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transactions did Western Digital (WDC) executive Gubbi Vidyadhara K report?
He reported routine equity compensation events, including tax-related share withholding and conversion of dividend equivalent rights into common stock. These transactions reflect vesting and related tax settlements rather than open-market buying or selling activity.
What are dividend equivalent rights in Western Digital (WDC) equity awards?
Dividend equivalent rights mirror dividends on underlying awards and can convert into common shares. In this filing, 34.8121 dividend equivalent rights converted on a one-for-one basis into Western Digital common stock as related restricted stock units vested.
What does transaction code F mean in this Western Digital (WDC) Form 4?
Code F indicates shares were disposed of to pay tax obligations or exercise costs associated with vesting or exercising awards. Here, 4,595 shares were withheld under Rule 16b-3(e) to cover taxes, rather than being sold in the open market.
AI-generated analysis. How Rhea-AI works. Not financial advice.
