Business Context and Reporting Period
Company: Ball Corporation
Filing Type: Form 8-K (Current Report)
Date of Event: January 23, 2007
Reporting Period: The filing reports on amendments to executive compensation plans effective January 1, 2007.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on changes to executive compensation arrangements.
Material Changes
The Board of Directors, through the Human Resources Committee, implemented the following amendments effective January 1, 2007:
- Supplemental Executive Retirement Plan (SERP):
- Participants with accrued benefits as of December 31, 2006, may elect a one-time payment form (annual payments or lump sum) in 2007.
- Participants accruing benefits after December 31, 2006, will receive benefits solely as a lump sum payment.
- Lump sum calculations will use assumptions consistent with the Company's Pension Plans, except the interest rate will be set at 80% of the rate used for those Pension Plans.
- Long-Term Incentive Compensation Plan:
- The maximum target percentage required to achieve return on average invested capital for future performance cycles was slightly reduced.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on operational outlook, or discussion of specific risks and contingencies beyond the administrative changes to the compensation plans described above.
Key Facts for Investor Verification
- Verify the impact of the reduced interest rate assumption (80% of Pension Plan rate) on the Company's future pension and SERP liabilities.
- Confirm the specific reduction amount for the return on average invested capital target in the Long-Term Incentive Compensation Plan.
- Review the eligibility criteria for the one-time election of payment forms under the amended SERP.