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This excerpt taken from the WDC DEF 14A filed Dec 15, 2006. Awarding
Incentive Compensation for Fiscal 2006
The Committee believes that Western Digital delivered
exceptional financial performance during fiscal 2006 and, as a
result, the value of Western Digital’s common stock rose
from $13.76 on July 1, 2005 to $19.81 on June 30,
2006. This exceptional financial performance is highlighted by:
Because Western Digital exceeded all of the financial and other
performance goals under the ICP in fiscal 2006, ICP cash awards
equivalent to approximately 192% of the target awards were made
to executive officers for the six months ended December 30,
2005 and ICP cash awards equivalent to approximately 125% of the
target awards were made to executive officers for the six months
ended June 30, 2006.
Awards of stock options, restricted stock, restricted stock
units and long-term cash awards made to Western Digital’s
executive officers during fiscal 2006 are summarized below under
“Summary Compensation,” “Option/SAR Grants in
Last Fiscal Year” and “Long-Term Incentive
Plans — Awards in Last Fiscal Year” beginning at
page 20. The Committee granted the entire award of
restricted stock units to Mr. Bukaty and Mr. Milligan,
the award of 20,000 restricted stock units to Dr. Moghadam
and a portion of the 300,000 shares of restricted stock
awarded to Mr. Coyne in fiscal 2006 in consideration of
each such executive officer’s cancellation of the
performance share award granted to the executive officer in
fiscal 2005. The Committee awarded additional shares of
restricted stock to Mr. Coyne and Dr. Moghadam in
fiscal 2006 for retention purposes and additional stock options,
restricted stock units and long-term cash awards to
Mr. Coyne and Dr. Moghadam in fiscal 2006 in
recognition of their contributions to Western Digital and at a
level consistent with the long-term incentive program.
In addition, in September 2005, Mr. Coyne received a
payment of $75,000 pursuant to his long-term retention agreement
with Western Digital and Dr. Moghadam received a payment of
$112,500 pursuant to his long-term retention agreement with
Western Digital. These long-term retention agreements are
described in further detail under “Employment Contracts,
Termination of Employment and Change in Control
Arrangements” beginning on page 27.
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