Base Salary of WD CFO Wolfgang Nickl Increased

On August 10, 2011, the Compensation Committee of the Board of Directors of Western Digital Corporation approved an increase in the base salary of Wolfgang U. Nickl, the company’s Senior Vice President and Chief Financial Officer, from $350,000 to $400,000.

On August 11, 2011, the Compensation Committee established the performance goals for cash bonus awards to be made under the Western Digital Corporation Incentive Compensation Plan (the ICP) for the six-month period beginning July 2, 2011 and ending December 30, 2011. Under the ICP, the company’s executive officers and certain other employees are eligible to receive cash bonus awards that are determined based on the company’s achievement of the established performance goals as well as other discretionary factors, including non-financial and strategic operating objectives, business and industry conditions and individual and business group performance.

For the six-month period beginning July 2, 2011 and ending December 30, 2011, the Compensation Committee selected earnings per share as the financial performance goal and established specific earnings per share goals to correspond to specific achievement percentages ranging between 0% and 200%.

For executive officers, the Compensation Committee has previously approved an ICP target bonus under the ICP for each executive officer that is expressed as a percentage of the executive’s semi-annual base salary and that currently ranges from 75% to 150% for the executive officers. At the end of the six-month performance period, the ICP will fund in an amount ranging from 0% to 200% based on an interpolation between the company’s performance as measured against the pre-established earnings per share goals and a consideration of the company’s overall achievement of key non-financial and strategic operating objectives as well as changes in the business and industry that occur during the performance period. Each executive will be eligible to receive a bonus in an amount equal to his target bonus multiplied by the funding percentage approved by the Compensation Committee,