This excerpt taken from the WDC DEF 14A filed Dec 15, 2006.
Compensation for Mr. Massengill
During fiscal 2006, Mr. Massengill served as Chief Executive Officer from July 1, 2005 until October 1, 2005 at which time, pursuant to an Employment Agreement he entered into with Western Digital on August 25, 2005,
Mr. Massengill relinquished his role as Chief Executive Officer and agreed to serve as a full-time employee of Western Digital in his current position as Chairman of the Board of Directors. Pursuant to this agreement and as an inducement for Mr. Massengill to serve as Chairman of the Board, Mr. Massengill continued to receive base salary, paid bi-weekly, at his then-current annual rate of $800,000 and his target annual bonus under the ICP remained 100% of his base salary, resulting in bonus payments earned by Mr. Massengill during fiscal 2006 under the ICP of $1,258,000. In addition, for certain equity awards previously granted to Mr. Massengill that were scheduled to vest after the scheduled term of Mr. Massengills employment with Western Digital and as an inducement to continue to serve until such time, Mr. Massengill agreed that all stock options and restricted stock awards previously granted to him that were scheduled to vest after July 31, 2007 would be cancelled and that all outstanding stock options and shares of restricted stock that were scheduled to vest after January 1, 2007 but on or before July 31, 2007 would accelerate and become vested on January 1, 2007 provided that Mr. Massengill remained employed through January 1, 2007. The additional terms of Mr. Massengills Employment Agreement with Western Digital are described in further detail under Employment Contracts, Termination of Employment and Change in Control Arrangements beginning on page 27.