Q3 Update: FY2015 Year-end Performance Bonus
Funding On Track
Seagate on April 17 reported fiscal third-quarter 2015 revenue. The company performed well despite challenges posted by macroeconomic pressures and PC demand -- managing cost, scrap and inventory, innovating in R&D and addressing customer needs in a challenging environment.
Based on our Q3 revenue and profitability levels, we are on track for funding the Q3-Q4 FY2015 non-executive bonus pool for the Key Contributor Performance Bonus (KCPB) and Company Performance Bonus (CPB) plans.
Q3 financial performance is an indicator of being on track, but our combined financial performance in Q3 and Q4 will determine what, if any, the bonus pool for the non-executive plans may be. Note that the Executive Bonus Plan is measured on an annual basis with a significantly higher performance target.
Quality Performance Achieved in Four out of Five Markets
Four of five markets exceeded the Reliability Quality and Competitiveness (RQC) goal to be best in class at more than 80 percent of our key OEM customers. Business Critical, Desktop, Consumer Electronics and Notebook scored 93 percent or better. Mission Critical remains below goal because of legacy product field performance. New mission critical products and new vintages of legacy products are performing at best-in-class levels at eight of our top nine OEM customers.
More Information Available Online
For more details, refer to Seagate’s Variable Pay policy online. For more information on how the performance bonus programs work, refer to the recorded demo Understand the 2015 Performance Bonus Plans and the Employee FAQs, which include information on eligibility. (CPB and KCPB do not include executives, employees eligible for sales compensation, temporary employees and employees located in Brazil.)
Thank you for your ongoing efforts. Let’s stay focused on our goals, manage operating expenses carefully and continue to execute.
Pat O’Malley
EVP, Chief Financial Officer
Joy Nyberg
SVP, HR and Internal Communications/Community Engagement
Seagate Confidential: Please delete this message when you no longer need it. Thank you.