Document:

exv10w8

 

Exhibit 10.8

Western Digital Corporation

Summary of Compensation Arrangements

for

Named Executive Officers and Directors

NAMED EXECUTIVE OFFICERS

This summary sheet reports current base salaries and certain other compensation for the current
executive officers of Western Digital Corporation (the “Company”) who were named in the Summary
Compensation Table in the Company’s Proxy Statement that was filed with the Securities and Exchange
Commission in connection with the Company’s 2006 Annual Meeting of Shareholders (the “Named
Executive Officers”).

	 	 	 	 	 
	 	 	Current Base
	Named Executive Officer	 	Salary
	 
	 	 	 	 
	John F. Coyne*
	 	$	800,000	 
	President and Chief Executive Officer
	 	 	 	 
	 
	 	 	 	 
	Raymond M. Bukaty
	 	$	400,000	 
	Senior Vice President, Administration, General Counsel and Secretary
	 	 	 	 
	 
	 	 	 	 
	Timothy M. Leyden
	 	$	409,000	 
	Executive Vice President, Finance
	 	 	 	 
	 
	 	 	 	 
	Stephen D. Milligan
	 	$	450,000	 
	Senior Vice President and Chief Financial Officer
	 	 	 	 
	 
	 	 	 	 
	Hossein Moghadam**
	 	$	400,000	 
	Senior Vice President and Chief Technology Officer
	 	 	 	 

 

			
	*	 	The following applies with respect to Mr. Coyne’s compensation by the Company:

	 	 	 	–   On September 21, 2004,
the Company entered into a Long-Term Retention Agreement – Cash with Mr. Coyne, which was filed as an exhibit to the Company’s Annual Report
on Form 10-K, filed with the Securities and Exchange Commission for the fiscal year
ending June 30, 2006, which is incorporated herein by reference.
	 
	 	 	 	–   On May 14, 2006, the Compensation Committee of the Board of Directors (the
“Board”) granted to Mr. Coyne a performance cash award as disclosed in Item 1.01 of
the Company’s Current Report on Form 8-K filed with the Securities and Exchange
Commission on May 16, 2006, 

 

 

	 	 	 	which is incorporated herein by reference. Payout of the
cash award is dependent upon the Company’s achievement of financial goals established
by the Compensation Committee of the Board on September 14, 2006, as disclosed in
Item 1.01 of the Company’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on September 20, 2006, which is incorporated herein by reference.
	 
	 	 	 	–   On October 31, 2006, the Company entered into an employment agreement with Mr.
Coyne, as disclosed in Item 1.01 of the Company’s Current Report on Form 8-K, filed
with the Securities and Exchange Commission on November 2, 2006, which is
incorporated herein by reference.
	 
	 	 	 	–   Also on October 31, 2006, the Compensation Committee of the Board granted to Mr.
Coyne two performance cash awards, as disclosed in Item 1.01 of the Company’s Current
Report on Form 8-K, filed with the Securities and Exchange Commission on November 2,
2006, which is incorporated herein by reference. Payout of these two cash awards is
dependent upon the Company’s achievement of financial goals established by the
Compensation Committee of the Board on November 8, 2006, as disclosed in Item 5.02 of
the Company’s Current Report on Form 8-K filed with the Securities and Exchange
Commission on November 14, 2006, which is incorporated herein by reference.

 

			
	**	 	The following applies with respect to Dr. Moghadam’s compensation by the Company:

	 	 	 	–   On September 21, 2004,
the Company entered into a Long-Term Retention Agreement – Cash, with Dr. Moghadam, which was filed as an exhibit to the Company’s annual
report on Form 10-K, filed with the Securities and Exchange Commission on September
14, 2005, which is incorporated herein by reference.
	 
	 	 	 	–   On February 15, 2006, the Compensation Committee of the Board granted to Dr.
Moghadam a long-term cash award that is payable dependent upon the Company’s
achievement of pre-determined financial goals established by the Compensation
Committee of the Board on February 15, 2006, as disclosed in Item 1.01 of the
Company’s Current Report on Form 8-K filed with the Securities and Exchange
Commission on February 22, 2006, which is incorporated herein by reference.

The Named Executive Officers received cash bonus awards for the second half of fiscal year 2007 in
accordance with the performance goals disclosed in Item 5.02 of the Company’s Current Report on
Form 8-K, filed with the Securities and Exchange Commission on November 14, 2006, which is
incorporated herein by reference. In addition, on June 12, 2007, the Compensation Committee of the
Board established the performance goals for the cash bonus awards that the Named Executive Officers
are eligible to receive for the first half of fiscal year 2008, as disclosed in Item 5.02 of the
Company’s current report on Form 8-K, filed with the Securities and Exchange Commission on June 15,
2007, which is incorporated herein by reference.

 

 

The Named Executive Officers are entitled to participate in various Company plans as set forth in
the exhibits to the Company’s filings with the Securities and Exchange Commission.

In addition, the Named Executive Officers may be eligible to receive perquisites and other personal
benefits as disclosed in the Company’s Proxy Statement.

DIRECTORS

The Company’s non-employee directors currently receive an annual retainer of $75,000 in January, or
if they join the Board at a later date, they receive a proportion of the annual fee corresponding
to the period for which they serve. The non-employee chairman of the Board receives a quarterly
retainer of $25,000. If a lead independent director has been designated by the Board, the lead
independent director receives a quarterly retainer of $5,000. The chairman of the audit committee
of the Board receives an annual retainer of $15,000, the chairman of the compensation committee of
the Board receives an annual retainer of $10,000 and the chairman of the governance committee of
the Board receives an annual retainer of $7,500. All audit committee members, including the chairman, receive
an annual retainer of $10,000. All compensation committee members, including the chairman, receive
an annual retainer of $5,000. All governance committee members, including the chairman, receive an
annual retainer of $2,500. Non-employee directors are reimbursed for reasonable out-of-pocket
expenses incurred in attending Board and committee meetings, but directors do not receive separate
payments for attendance at Board and committee meetings.

Mr. Coyne, who is an employee of the Company, does not receive any compensation for his service on
the Board or any Board committee.

In addition to the standard cash compensation provided to the Company’s non-employee directors, on
May 3, 2007 the Board approved a special cash payment of $10,000 to each of Ms. Cote and Mr.
Kimsey, $20,000 to Mr. DeNero and $10,000 to Mr. Pardun. The Board approved the additional
payments to Ms. Cote and Messrs. Kimsey and DeNero in recognition of the significant time and
effort expended by such individuals as members of a Special Committee of the Board that was formed
in fiscal 2007 to conduct a voluntary review of the Company’s historical stock option grants. The
Board approved the additional payment to Mr. Pardun in recognition of his additional efforts as the
Company’s lead independent director during the first and second quarters of fiscal 2007 in
connection with certain succession planning and corporate governance matters.

The Company’s non-employee directors are entitled to participate in various other Company plans as
set forth in the exhibits to the Company’s filings with the Securities and Exchange Commission.exv10w17

 

Exhibit 10.17

20511 Lake Forest Drive

Lake Forest, California 92630

949.672.7000

April 12, 2007

Timothy Leyden

8 Bunker Hill

Irvine, CA 92620

Dear Tim:

It is with great pleasure that we at Western Digital extend this offer of employment to you. Your
position will be Executive Vice President, Finance reporting to Steve Milligan, Chief Financial
Officer.

This is an exempt position, and you be will be designated a Section 16b elected officer. Your
yearly-targeted OTE (On Target Earnings) will be $715,750. You will earn an annual base salary of
$409,000, paid bi-weekly. Your annual Incentive Compensation Plan (ICP) target will be 75% of your
base pay, and will be based on and paid out semi-annually on the accomplishment of your individual
goals and objectives as aligned with corporate goals and objectives. Your participation in the FY07
ICP will be prorated based on your date of hire. The fiscal year runs from July through June. You
will be eligible to participate in the Company’s Deferred Compensation Plan, Change of Control
Severance Plan, and, upon Compensation Committee approval, the Executive Severance Plan, as a “Tier
I Executive”.

Contingent upon approval by the Compensation Committee of the Board of Directors, we will recommend
a stock option grant amount of 150,000 options, subject to the provision of Western Digital’s Stock
Option Agreement. In addition, and also contingent upon approval by the Compensation Committee of
the Board of Directors, we will recommend a grant of 75,000 restricted stock units. Thirty-three
percent (33.33%) or 25,000 of these restricted units will vest on the anniversary of the date of
grant in 2008. Thirty-three percent (33.33%) or 25,000 of these restricted units will vest on the
anniversary of the date of grant in 2009. The remaining thirty-three percent (33.33%) or 25,000
will vest on the anniversary of the date of grant in 2010. Vesting will cease upon termination of
your service with the company.

You will receive a long-term performance cash incentive award of $210,000. This performance cash
award measures corporate level financial performance over a one-year (FY08) period and is funded if
we achieve a threshold level of performance on defined financial metrics. If we exceed our stated
goals, the plan has the ability to pay up to 200% for superior performance, 100% for target
performance, 50% for threshold performance, and 0% for performance below the minimum threshold. You
will be eligible to participate in the company’s annual Long Term Incentive (LTI) plan from the
cycle starting August/September 2007.

 

 

You will receive a sign-on bonus of $75,000 payable within three weeks of your start date and
considered taxable income to you. If you voluntarily terminate prior to the completion of twelve
(12) full months of employment at Western Digital, this bonus shall be repaid to the company in
full at the time of your termination.

This offer is contingent upon successful completion of all pre-employment criteria as outlined on
Western Digital’s Application for Employment.

As a condition of employment, immediately upon hire, you will be required to sign an Employment
Agreement governing inventions, proprietary information and such other subject matter, which the
company considers vital to protect its operation.

You are employed by the company on an at-will basis. This means that either you or the company may
terminate the employment relationship at any time for any reason with or without cause. The at-will
nature of your employment with the company can only be changed by an agreement in writing signed by
you and an authorized representative of the company.

You will be eligible on your first day of employment for Beneflex, our flexible benefits plan,
which allows you to choose the coverage that fits your needs. You will be eligible to join the
Western Digital Savings (401k) Plan immediately. Your position qualifies you for additional
benefits provided exclusively to executives of your level including a $3,000 per year Financial
Counseling Reimbursement, additional life insurance allowance, Long Term Disability, AD&D, and an
additional $3,000 in reimbursements for health care expenses that are not paid by your Beneflex
health plan. You will receive a complete benefits summary during your orientation on your first day
of employment.

Western Digital has a long-standing tradition of recognizing and rewarding performance as well as
promoting from within. The company provides an environment where employees have opportunities to
grow and develop careers. Your role as Executive Vice President, Finance will be critical to the
continued success of the organization. How well you perform in your new assignment will provide a
platform from which you will have the opportunity to be promoted to other leadership roles within
WD at the discretion of your manager. We look forward to welcoming you as strategic part of the
leadership team.

Your first day of employment is to be determined. New hire orientation will begin at 8:00 a.m. at
26160 Enterprise Way, Lake Forest, CA 92630. At that time, you will be required to provide
authentic documents that establish your identity and employment eligibility. Please refer to the
List of Acceptable Documents which will be provided prior to your start date.

Please return the signed and dated original of this letter indicating your acceptance. If there are
any questions of which I may be of assistance, please let me know.

Sincerely,

Jackie DeMaria

Vice President, Human Resources

 

 

I (i) accept the Company’s offer of employment; (ii) agree to the items stated in this letter,
and (iii) acknowledge that no representations have been made to me regarding my employment with the
Company other than as set forth in this letter.

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