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 Digitals 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 Digitals 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 officers 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.