Business Context and Reporting Period
This Form 8-K filing by Ball Corporation, dated April 26, 2006, reports the entry into a material definitive agreement regarding executive compensation. The filing was signed on May 2, 2006, by Raymond J. Seabrook, Executive Vice President and Chief Financial Officer.
Key Financial Metrics
The filing does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity figures. The document focuses exclusively on the terms of a new incentive plan.
Material Changes
The primary material change is the approval of the "Acquisition-Related, Special Incentive Plan" by the Human Resources Committee and the Board of Directors. This plan is designed to support the integration of U.S. Can and Alcan Plastics into Ball Corporation's metal food, household products packaging, and plastics packaging divisions.
Guidance, Outlook, and Plan Details
- Plan Objective: To incentivize selected executives and senior managers to successfully integrate acquired businesses and sustain other business units.
- Performance Periods: The plan covers 12-month (ending Dec 31, 2006), 24-month (ending Dec 31, 2007), and 36-month (ending Dec 31, 2008) periods, all starting January 1, 2006.
- Performance Metrics: Payouts are contingent on the combined divisions exceeding specific cumulative EBIT and cash flow goals.
- Eligibility: Participants must remain continuously employed full-time from the effective date through the end of the performance period.
- Award Structure: Awards are calculated as a percentage of the participant's average annual base salary for 2006, 2007, and 2008. Potential awards range from 0% to 150% of the special incentive factor.
- Administration: The Human Resources Committee administers the plan, and the Chief Financial Officer determines final EBIT and cash flow calculations.
Investor Verification Checklist
- Verify the specific EBIT and cash flow targets set by the Committee, as these are not disclosed in this filing.
- Confirm the list of executives and senior managers eligible for the plan.
- Monitor future filings for the actual performance results of the combined divisions against the stated goals.
- Review the impact of this incentive plan on future compensation expenses in upcoming quarterly reports.