Western Digital legal chief sells 432 shares
Western Digital Chief Legal Officer Cynthia L. Tregillis reported a small net sale of company stock.
Rhea-AI Filing Summary
Western Digital Chief Legal Officer Cynthia L. Tregillis reported a small net sale of company stock. She sold 432 shares of common stock in an open-market transaction at $545.60 per share on June 5, 2026, executed under a pre-arranged Rule 10b5-1 trading plan. After this trade, she directly owned 116,643 shares.
On June 3, 2026, she exercised dividend equivalent rights that converted into 6.6834 shares of common stock and 6 additional shares from a related derivative exercise, while 699 shares were withheld to cover tax obligations tied to vesting. Footnotes note that her holdings include 611 shares acquired through the Employee Stock Purchase Plan.
Positive
- None.
Negative
- None.
Insider Trade Summary 10b5-1
Exercise and sale activity reported; no spread calculated
Exercise and Sale
4 txns
Insider
Tregillis Cynthia L
Role
Chief Legal Officer & Corp Sec
Sold
432 shs ($236K)
Approx. gross sale proceeds
$236K
Approx. exercise cost
$0.00
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock | 432 | $545.60 | $236K |
| Exercise | Dividend Equivalent Rights | 6.6834 | $0.00 | $0.00 |
| Exercise | Common Stock | 6 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 699 | $594.11 | $415K |
Holdings After Transaction:
Dividend Equivalent Rights — 304.3636 contracts (Direct);
Common Stock — 116,643 shares (Direct)
Footnotes (4)
- 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. Includes 611 shares acquired under the Issuer's Employee Stock Purchase Plan on May 31, 2026.
- F3. Payment of tax obligation by withholding securities incident to the vesting of securities in accordance with Rule 16b-3(e).
- F4. The sales reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on March 6, 2026.
Key Figures
Open-market sale: 432 shares at $545.60
Shares withheld for taxes: 699 shares at $594.11
Dividend equivalent conversion: 6.6834 shares
+3 more
6 metrics
Open-market sale
432 shares at $545.60
Common stock sale on June 5, 2026
Shares withheld for taxes
699 shares at $594.11
Tax-withholding disposition on June 3, 2026
Dividend equivalent conversion
6.6834 shares
Dividend Equivalent Rights converted to common stock
Post-transaction holdings
116,643 shares
Common stock directly owned after June 5, 2026 sale
Remaining dividend equivalent rights
304.3636 units
Dividend Equivalent Rights outstanding after transactions
ESPP acquisition
611 shares
Shares acquired under Employee Stock Purchase Plan on May 31, 2026
Key Terms
Dividend Equivalent Rights, restricted stock units, Employee Stock Purchase Plan, Rule 16b-3(e), +1 more
5 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"
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.
Employee Stock Purchase Plan financial
"Includes 611 shares acquired under the Issuer's Employee Stock Purchase Plan on May 31, 2026."
An employee stock purchase plan is a company program that lets workers buy shares through small payroll deductions, often at a discount to the market price and after a set offering period. Think of it like a workplace savings plan that turns into ownership: it encourages employees to share in the company’s success and can create predictable buying or selling of stock that investors watch because it affects supply, demand and employee incentives.
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)."
Rule 10b5-1 trading plan regulatory
"The sales reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on March 6, 2026."
A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transactions did Western Digital (WDC) executive Cynthia Tregillis report?
Cynthia Tregillis reported exercising dividend equivalent rights, a tax-withholding share disposition, and a small open-market sale. These transactions involved Western Digital common stock and related derivative rights, reflecting routine equity compensation activity combined with a pre-planned sale under a Rule 10b5-1 trading plan.
What were the tax-withholding transactions reported by Cynthia Tregillis at Western Digital?
On June 3, 2026, 699 shares of Western Digital common stock were withheld to satisfy tax obligations arising from vesting securities. The filing notes this was a payment of tax obligations by withholding shares, treated as a disposition under Rule 16b-3(e) rather than an open-market sale.
How were dividend equivalent rights handled in Cynthia Tregillis’s Western Digital filing?
Dividend equivalent rights were converted into 6.6834 shares of Western Digital common stock on a one-for-one basis. This occurred in connection with vesting restricted stock units, and a small cash payment was made to settle any fractional dividend equivalent right that could not be paid in shares.
Did the Western Digital insider transactions involve an Employee Stock Purchase Plan?
Yes. A footnote states that Cynthia Tregillis’s holdings include 611 shares acquired under Western Digital’s Employee Stock Purchase Plan on May 31, 2026. These shares are part of her overall direct ownership position reported after the described transactions in the filing.
AI-generated analysis. How Rhea-AI works. Not financial advice.
