This excerpt taken from the WDC DEF 14A filed Sep 24, 2007.
Cash Retention Bonuses
In limited circumstances, we may award cash retention bonuses to executives whose retention is deemed critical to our future success. The purpose of these bonus awards is to retain critical talent by providing these individuals with a significant incentive to remain employed by us through the payment date. These bonus awards typically vest over a multiple-year period and are payable only if the executive is employed on the applicable vesting date.
On September 21, 2004, we entered into a retention agreement with each of Mr. Coyne and Dr. Moghadam. According to these agreements, Mr. Coyne received a cash retention award in the amount of $300,000 and
Dr. Moghadam received a cash retention award in the amount of $450,000. Each award vested and became payable 25% on September 1, 2005, 30% on September 1, 2006 and 45% on September 1, 2007. Although we entered into the retention agreements before Mr. Coyne and Dr. Moghadam were executive officers, these agreements have remained in place since Mr. Coyne and Dr. Moghadam became executive officers.