At a glance
Ball’s 2026 proxy describes a nonqualified deferred-compensation program for certain U.S. employees. Eligible participants may defer annual incentive compensation, certain restricted stock unit awards, or both. The filing also describes two active employee arrangements with different mechanics, so a planning decision should begin by identifying the exact plan and reading its current governing documents.
The 2005 Deferred Compensation Plan permits eligible employee participants to defer some or all annual incentive compensation. Ball’s 2026 proxy says employees who are ineligible for the closed SERP may be eligible for an annual company contribution equal to 5% of eligible compensation above the qualified retirement-plan limit. That is different from Ball’s separate 401(k) provision: the same proxy says employees who are not eligible for the Ball Pension Plan may be eligible for a 5% contribution based on eligible compensation.
The 2005 Deferred Compensation Company Stock Plan permits eligible employees to defer some or all short-term incentive compensation and certain RSU awards. Public filings describe balances as stock units valued like Ball common shares, a 20% company match capped at $20,000 per year, and limited diversification: at least 50% of the balance remains in stock units until retirement. The 2026 proxy says distributions may begin at a defined point no sooner than six months after separation and may be paid as a lump sum or in annual installments over two to fifteen years.
Three planning questions deserve particular attention:
- Election flexibility. The filed 2005 stock-plan document says a compensation deferral agreement becomes effective and irrevocable after the applicable election period, subject to the plan. Confirm deadlines and permitted changes in the current documents before electing.
- Employer-credit risk. Ball’s 2026 proxy says participants become general unsecured creditors and deferred amounts are subject to claims on the same basis as other general unsecured creditors. The filed stock plan also says benefits are paid from general company funds or, if created, a rabbi trust rather than from segregated participant assets.
- Company-stock concentration. The stock plan’s valuation and diversification rules can connect employment, compensation and retirement assets to the same company. Review the household’s total Ball exposure, including shares and stock units held elsewhere, before evaluating a new deferral.
The decision is not simply whether to defer. A useful review compares current cash-flow needs, marginal tax rates now and in expected distribution years, the elected payment schedule, liquidity outside the plan, creditor exposure, and total company-stock concentration. Current plan documents and individual tax and legal advice control.