This excerpt taken from the WDC DEF 14A filed Sep 24, 2007.
Non-Equity Incentive Plan Compensation and Awards
Incentive Compensation Plan. Under our Incentive Compensation Plan, or ICP, our executive officers and other participating employees are eligible to receive cash bonus awards on a semi-annual basis. The amount of the bonuses payable under our ICP are determined based on our achievement of operating and/or financial performance goals established by the Compensation Committee semi-annually as well as other discretionary factors, including non-financial and strategic operating objectives, business and industry conditions and individual and business group performance.
The executive is generally required to remain employed with us through the date on which the Compensation Committee determines, and we pay, the bonus amounts for the applicable semi-annual period to be eligible to receive payment of the bonus for that period. Mr. Shakeels employment agreement with us provided, however, that he would be eligible to receive a semi-annual bonus award for the second half of fiscal 2007 as long as he remained employed with us through June 29, 2007, the last day of the performance period under the ICP for the second half of fiscal 2007.
See the Compensation Discussion and Analysis beginning on page 16 above for a more detailed description of our Incentive Compensation Plan, including the payouts to our named executive officers under the ICP for fiscal 2007.
Long-Term Performance Cash Awards. The long-term performance cash awards reported in the Grants of Plan-Based Awards Table Fiscal 2007 were granted under, and are subject to, the terms of our 2004 Performance Incentive Plan as well as the terms and conditions of a Notice of Grant of Long-Term Cash Award and Long-Term Cash Award Agreement Executives in substantially the form previously filed with the Securities and Exchange Commission. Each long-term performance cash award is valued at a target amount as determined by the Compensation Committee and will be payable in cash at the end of a fixed performance period in an amount ranging between 0% and 200% of the target amount depending upon the level of our achievement against one or more operating and/or financial performance goals established by the Compensation Committee. For a description
of the accelerated vesting conditions of the long-term performance cash awards in the event of certain termination or change in control events, see Potential Payments upon Termination or Change in Control below.
In addition, during fiscal 2007, Mr. Coyne and Dr. Moghadam earned payments under long-term performance cash awards previously awarded to them by the Compensation Committee, as follows: