544.1 million, an 11.5% decrease from the estimated TAM. As a result of the significantly smaller TAM for
fiscal 2013, the threshold economic profit goals for the company and for the HGST subsidiary were not achieved,
and the threshold goal for the WD subsidiary was achieved but only by a small margin. The Compensation
Committee determined that these achievement levels were not indicative of the company's, and each
subsidiary's, performance during the period based on the smaller market opportunity available during the period.
As such, the Compensation Committee determined to exercise discretion to adjust the economic profit goals
downward by 11.5%, consistent with the decrease in TAM for the period. In addition, for Mr. Milligan, the
Compensation Committee determined to exercise discretion under the MOFCOM modifier to increase his award
from 88% to 98% of target as a result of Mr. Milligan's encouraging a culture of compliance with the MOFCOM
regulatory conditions.
The following table reflects the fiscal 2013 goals (including the revised economic profit goals), the actual
performance against those goals and the resulting payout percentage of the awards as approved by the
Compensation Committee.
Name
Performance Metric
Original
Target Goal
(100%
Payout)
Revised
Target Goal
(100%)
Payout
Actual
Performance
Resulting
Payout
Percentage Weight
Total Payout
Percentage
WD/HGST Product
Roadmap Milestones
Undisclosed
N/A
Undisclosed
120%
50%
60%
Stephen D. Milligan . . . . . . WDC Economic Profit
$1.183 billion $1.047 billion
$908 million
56%
50%
28%
MOFCOM Modifier
10%
Total
98%
Timothy M. Leyden . . . . . .
WD Product Roadmap
Milestones
Undisclosed
N/A
Undisclosed
100%
50%
50%
WD Economic Profit
$1.042 billion $922 million
$923 million
100%
50%
50%
Total
100%
Michael D. Cordano . . . . . .
HGST Product Roadmap
Milestones
Undisclosed
N/A
Undisclosed
140%
50%
70%
HGST Economic Profit
$1.190 billion $1.053 billion
$890 million
52%
50%
26%
Total
96%
Below is a table that reflects the number of shares paid to each executive officer under the acquisition PSU
awards for fiscal 2013 based on the performance described in the table above. The target number of acquisition
PSUs reported in the table below includes dividend equivalents credited in the form of additional units.
Name
Target # of PSUs
Subject to FY13
Performance
Payout Percentage
(% of Target)
# of Shares Paid
for FY13
Stephen D. Milligan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46,498
98%
45,568
John F. Coyne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
--
--
--
Wolfgang U. Nickl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
--
--
--
Timothy M. Leyden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25,566
100%
25,566
Michael D. Cordano . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24,766
96%
23,775
James J. Murphy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
--
--
--
Fiscal 2013 Payouts from Prior Multi-Year Performance-Based LTI Cash Awards.
Under our fiscal 2012
annual LTI program, the Compensation Committee granted a long-term cash award to each named executive
officer (other than Messrs. Milligan and Cordano, who were not employees at the time). The long-term cash
awards become payable at between 0% and 300% of the target award value based on the achievement of selected
revenue and operating income targets for the cumulative two-year period covering fiscal 2012 and 2013.
Revenue and operating income are calculated based on generally accepted accounting principles, subject to the
Compensation Committee's discretion to exclude the financial impact of certain extraordinary, unusual or non-
recurring transactions. In addition, the goals are subject to automatic adjustment at the end of the performance
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