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Ball execs received lower '05 bonuses

Roger Fillion, Rocky Mountain News

Published March 21, 2006 at midnight

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Top executives at Ball Corp. took home lower bonuses for 2005, even though the packaging and aerospace company hit its internal financial target.

The bonuses were cut by as much as half because Ball executives failed to match their 2004 track record, when Ball's actual performance topped the targeted performance. The target is based on return on capital.

David Hoover, the Broomfield company's CEO, pocketed a bonus, or "incentive" pay, of $1 million, down from $1.8 million for 2004.

"The better the company performs, usually the higher the compensation is. And the reverse is true also," explained Ball spokesman Scott McCarty.

In a filing with the Securities and Exchange Commission, Ball noted the corporation's performance last year was about "at target" vs. "above target" in 2004.

Over the past five years, however, Ball's stock has far outpaced the S&P 500 index as well as the shares of the company's peers in the packaging business.

According to the SEC filing, $100 invested in Ball's stock at the end of December 2000 would have been worth $362 at the end of 2005. The calculation assumes that dividends are reinvested. By comparison, $100 invested in the S&P 500 index during the same period would have been worth $103 last Dec. 31. And $100 invested in the Dow Jones Containers & Packaging Index would have been worth $191.

Hoover took home total pay of $8.4 million for last year, down from $13.6 million in 2004. The bulk of Hoover's 2004 pay was tied to the company's short- and long-term financial performance.

Hoover's 2005 payout included a $900,000 salary; the $1 million bonus; $3.4 million in long-term pay; $135,659 in other pay; and $3 million from cashing in 102,560 stock options.

Ball also gave Hoover 82,000 stock options for 2005 that carry a "present value" of $955,300. Hoover's options have a potential value of $5.2 million if Ball's stock rises 10 percent annually over the 10-year life of the options.

Among other top executives:

• Executive Vice President Hanno Fiedler's bonus - or "incentive" pay - fell to $289,394 for 2005 from $579,482 for 2004.

• Senior Vice President John Friedery's bonus fell to $332,945 last year from $521,007.

• Chief Financial Officer Raymond Seabrook's bonus declined to $281,606 from $514,211.

• Senior Vice President David Westerlund's bonus declined to $250,785 from $457,075.

Ball Corp.

BLL: NYSE

$44.79

+ 46 cents

or 303-892-2467