Western Digital Corporation Summary of Compensation Arrangements for NamedExecutive Officers and Directors
Exhibit 10.1
Western Digital Corporation
Summary of Compensation Arrangements
for
Named Executive Officers and Directors
NAMED EXECUTIVE OFFICERS
Base Salaries. The current annual base salaries 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 2011 Annual Meeting of Stockholders (the “Named Executive Officers”) are as follows:
| Named Executive Officer | Title | Current Base Salary | ||||
| John F. Coyne | President and Chief Executive Officer | $ | 1,000,000 | |||
| Timothy M. Leyden | Chief Operating Officer | $ | 600,000 | |||
| Wolfgang U. Nickl | Senior Vice President and Chief Financial Officer | $ | 400,000 | |||
| James J. Murphy | Executive Vice President, Worldwide Sales and Sales Operations | $ | 425,000 | |||
| James K. Welsh III | Executive Vice President and GM, Branded Products | $ | 400,000 | |||
| James D. Morris | Executive Vice President and GM, Storage Products | $ | 400,000 | |||
Semi-Annual Bonuses. Under the Company’s Incentive Compensation Plan (the “ICP”), the Named Executive Officers are also eligible to receive semi-annual cash bonus awards that are determined based on the Company’s achievement of performance goals pre-established by the Compensation Committee (the “Committee”) of the Company’s Board of Directors as well as other discretionary factors. The ICP, including the performance goals established by the Committee for the first half of fiscal 2012, are further described in the Company’s current report on form 8-K filed with the Securities and Exchange Commission on August 15, 2011, which is incorporated herein by reference.
Additional Compensation. The Named Executive Officers are also eligible to receive equity-based incentives and discretionary bonuses as determined from time to time by the Committee, are entitled to participate in various Company plans, and are subject to other written agreements, in each case as set forth in 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 filed with the Securities and Exchange Commission in connection with the Company’s 2011 Annual Meeting of Stockholders.
DIRECTORS
Annual Retainer and Committee Retainer Fees. The following table sets forth the current annual retainer and committee membership fees payable to each of the Company’s non-employee directors:
| Type of Fee | Current Annual Retainer Fees | |||
| Annual Retainer | $ | 75,000 | ||
| Lead Independent Director Retainer | $ | 20,000 | ||
| Non-Executive Chairman of Board Retainer | $ | 100,000 | ||
| Additional Committee Retainers | ||||
| • Audit Committee | $ | 10,000 | ||
| • Compensation Committee | $ | 5,000 | ||
| • Governance Committee | $ | 2,500 | ||
| Additional Committee Chairman Retainers | ||||
| • Audit Committee | $ | 15,000 | ||
| • Compensation Committee | $ | 10,000 | ||
| • Governance Committee | $ | 7,500 | ||
The retainer fee to the Company’s lead independent director referred to above is paid only if the Chairman of the Board is an employee of the Company. Effective commencing with the Company’s 2010 Annual Meeting of Stockholders, the annual retainer fees are paid immediately following the Annual Meeting of Stockholders.
Non-employee directors do not receive a separate fee for each Board of Directors or committee meeting they attend. However, the Company reimburses all non-employee directors for reasonable out-of-pocket expenses incurred to attend each Board of Directors or committee meeting. Mr. Coyne, who is an employee of the Company, does not receive any compensation for his service on the Board or any Board committee.
Additional Director Compensation. The Company’s non-employee directors are also entitled to participate in the following other Company plans as set forth in exhibits to the Company’s filings with the Securities and Exchange Commission: Non-Employee Director Option Grant Program and Non-Employee Director Restricted Stock Unit Grant Program, each as adopted under the Company’s Amended and Restated 2004 Performance Incentive Plan; Amended and Restated Non-Employee Directors Stock-for-Fees Plan; and Deferred Compensation Plan.
