This excerpt taken from the WDC DEF 14A filed Sep 24, 2007.
2007 Special Retention and New Hire Awards
From time to time, the Compensation Committee may also grant stock options, restricted stock units and/or long-term performance cash awards outside of our long-term incentive program to certain new hires as a means to attract and motivate these individuals to accept employment with us as well as to our executives or other key employees in connection with a promotion or as a means to encourage the retention of those employees that are deemed critical to our future success. The purpose of these awards is to attract, motivate and retain critical talent by
providing a significant incremental opportunity for capital accumulation and to focus award recipients on increasing the value of our common stock.
On February 6, 2007, the Compensation Committee granted Dr. Moghadam an award of 80,000 restricted stock units that vests 100% on August 6, 2009. This award provides a retention incentive as the units are scheduled to vest 100% on August 6, 2009.
In addition, in connection with our employment of Mr. Leyden to succeed Mr. Milligan as Chief Financial Officer, the Compensation Committee awarded to Mr. Leyden a stock option to purchase 150,000 shares of our common stock, an award of 75,000 restricted stock units and a long-term performance cash award providing for a target cash opportunity of $210,000. The performance cash award corresponds to the performance period beginning June 30, 2007 and ending June 27, 2008 and is subject to our achievement of specified operating income and revenue goals that correspond to specific payment percentages ranging between 0% and 200%.