This excerpt taken from the WDC DEF 14A filed Sep 24, 2007.
Deferred Compensation Opportunities
Our executives and certain other key employees who are subject to U.S. federal income taxes are eligible to participate in our Deferred Compensation Plan. The Deferred Compensation Plan is intended to promote retention by providing employees with an opportunity to save in a tax-efficient manner. Participants in the Deferred Compensation Plan can elect to defer up to 100% of their base salary, semi-annual cash bonuses under our Incentive Compensation Plan and awards of restricted stock units without regard to the tax code limitations applicable to tax-qualified plans. Amounts deferred in cash are invested in one or more mutual funds or a declared rate fund as selected by the participant, and participants do not receive any additional above-market rates of return on amounts they defer. Payouts under the deferred compensation plan generally commence on a specified date or upon the retirement or death of the participant.
Please see the Non-Qualified Deferred Compensation Fiscal 2007 table and related narrative section, Non-Qualified Deferred Compensation Plan, on pages 40 and 41 below for a more detailed description of our Deferred Compensation Plan and the deferred compensation amounts that our executives have accumulated under the plan.