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  <TITLE> The Williams Companies, Inc. (Form: 8-K) </TITLE>
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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	January 26, 2006
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  	The Williams Companies, Inc.
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Delaware
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  	1-4174
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  	73-0569878
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  _____________________<BR>
  	(State or other jurisdiction
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  _____________<BR>
  	(Commission
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  ______________<BR>
  	(I.R.S. Employer
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	&nbsp;&nbsp;
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  	One Williams Center, Tulsa, Oklahoma
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  	74172
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  _________________________________<BR>
  	(Address of principal executive offices)
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  	&nbsp;
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  ___________<BR>
  	(Zip Code)
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  	Registrant&#146;s telephone number, including area code:
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  	&nbsp;
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  	918-573-2000
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><FONT SIZE="2">
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:</FONT>
  </P>
  <P><FONT SIZE="2">
  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  	Item 1.01 Entry into a Material Definitive Agreement.
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  On January 26, 2006, the Compensation Committee of The Williams Companies, Inc. ("Williams") Board of Directors (the "Compensation Committee") approved an annual incentive program for the Company&#x2019;s executive officers.  Funding under the 2006 annual incentive program will be based on Williams&#x2019; 2006 improvement in Economic Value Added ("EVA").  The payout of incentive awards to Williams&#x2019; executive officers under the 2006 annual incentive program will be based on the level of EVA attained.  The Compensation Committee will also establish the target incentive opportunity for each of our executive officers, expressed as a percentage of base salary, using survey data for individuals in comparable positions and markets.  The annual incentive program funds a bonus up to a maximum of 400 percent of target.  Two-thirds of any award earned above 200 percent of target is placed in a reserve and is at risk based on future EVA performance.  The Compensation Committee will review each executive officer's performance and contributions for the year, in consultation with the Chief Executive Officer with respect to executives other than the Chief Executive Officer, and will allocate the awards among the officers based on individual performance, business unit performance, and target opportunity for each position.  The Compensation Committee retains full discretion to determine whether a payout will be made under the program.<br><br>On February 5, 2004, the executive officers of Williams were granted certain performance-based deferred shares.  One-third of the deferred shares granted were eligible to be earned annually upon attainment of performance targets established by the Compensation Committee each year in the first 90 days of each calendar year.  The shares have a five-year term whereby there are five opportunities to earn the deferred shares granted.  The shares that are earned during the five years will be issued no earlier than at the end of the five-year term.  In January 2005, the Compensation Committee approved specific targets for the earning of the second one-third of the 2004 performance based deferred shares.  The determination of attainment of those performance targets will be made by the Compensation Committee following Williams&#x2019; year-end earnings release expected to occur on February 28.  On January 26, 2006, the Compensation Committee approved a specific performance target for the earning of one-third of the 2004 performance based deferred shares.  The performance target will be based on the level of EVA attained in 2006.<br><br>On February 25, 2005, the executive officers of Williams were granted certain performance-based deferred shares.  One-third of the deferred shares granted were eligible to be earned annually upon attainment of performance targets established by the Compensation Committee each year in the first 90 days of each calendar year.  The shares have a three-year term, with one-third of the grant eligible to be earned in each of three years.  The shares that are earned during the three years will be issued no earlier than at the end of the three-year term.  In February 2005, the Compensation Committee approved specific targets for the earning of the first one-third of the 2005 performance based deferred shares.  The determination of attainment of those performance targets will be made by the Compensation Committee following Williams&#x2019; year-end earnings release expected to occur on February 28.  On January 26, 2006, the Compensation Committee approved a specific performance target for the earning of the second one-third of the 2005 performance based deferred shares.  The performance target will be based on the level of EVA attained in 2006.<br><br>For each EVA improvement target discussed herein, the Compensation Committee reviews and approves the EVA calculation to ensure fairness to the Williams' officers, employees and shareholders, taking into account such items as mark-to-market accounting treatment and other non-recurring items or other developments that were not contemplated as part of Williams' business plan EVA targets.   <br><br>EVA is a registered trademark of Stern, Stewart and Company.<br>
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  	SIGNATURES
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  	Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
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  	The Williams Companies, Inc.
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  <I>
  	February 1, 2006
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  <I>
  	Brian K. Shore
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  	Name: Brian K. Shore
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  	Title: Secretary
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_9948.htm", "description": "LIVE FILING", "secsgml_size_bytes": 12436}]
metadata_filer: {"company-data": {"conformed-name": "WILLIAMS COMPANIES INC", "cik": "0000107263", "assigned-sic": "4922", "irs-number": "730569878", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-04174", "film-number": "06570471"}, "business-address": {"street1": "ONE WILLIAMS CTR", "city": "TULSA", "state": "OK", "zip": "74172", "phone": "9185732000"}, "mail-address": {"street1": "ONE WILLIAM CENTER", "city": "TULSA", "state": "OK", "zip": "74172"}, "former-company": {"former-conformed-name": "WILLIAMS BROTHERS COMPANIES", "date-changed": "19710817"}}
text: The Williams Companies, Inc. (Form: 8-K)
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of Report (Date of Earliest Event Reported):
  January 26, 2006
  The Williams Companies, Inc.
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Delaware
  1-4174
  73-0569878
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  One Williams Center, Tulsa, Oklahoma
  74172
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  918-573-2000
  Not Applicable
  ______________________________________________
  Former name or former address, if changed since last report
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:
  [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Top of the Form
  Item 1.01 Entry into a Material Definitive Agreement.
  On January 26, 2006, the Compensation Committee of The Williams Companies, Inc. ("Williams") Board of Directors (the "Compensation Committee") approved an annual incentive program for the Company's executive officers.  Funding under the 2006 annual incentive program will be based on Williams' 2006 improvement in Economic Value Added ("EVA").  The payout of incentive awards to Williams' executive officers under the 2006 annual incentive program will be based on the level of EVA attained.  The Compensation Committee will also establish the target incentive opportunity for each of our executive officers, expressed as a percentage of base salary, using survey data for individuals in comparable positions and markets.  The annual incentive program funds a bonus up to a maximum of 400 percent of target.  Two-thirds of any award earned above 200 percent of target is placed in a reserve and is at risk based on future EVA performance.  The Compensation Committee will review each executive officer's performance and contributions for the year, in consultation with the Chief Executive Officer with respect to executives other than the Chief Executive Officer, and will allocate the awards among the officers based on individual performance, business unit performance, and target opportunity for each position.  The Compensation Committee retains full discretion to determine whether a payout will be made under the program.
  On February 5, 2004, the executive officers of Williams were granted certain performance-based deferred shares.  One-third of the deferred shares granted were eligible to be earned annually upon attainment of performance targets established by the Compensation Committee each year in the first 90 days of each calendar year.  The shares have a five-year term whereby there are five opportunities to earn the deferred shares granted.  The shares that are earned during the five years will be issued no earlier than at the end of the five-year term.  In January 2005, the Compensation Committee approved specific targets for the earning of the second one-third of the 2004 performance based deferred shares.  The determination of attainment of those performance targets will be made by the Compensation Committee following Williams' year-end earnings release expected to occur on February 28.  On January 26, 2006, the Compensation Committee approved a specific performance target for the earning of one-third of the 2004 performance based deferred shares.  The performance target will be based on the level of EVA attained in 2006.
  On February 25, 2005, the executive officers of Williams were granted certain performance-based deferred shares.  One-third of the deferred shares granted were eligible to be earned annually upon attainment of performance targets established by the Compensation Committee each year in the first 90 days of each calendar year.  The shares have a three-year term, with one-third of the grant eligible to be earned in each of three years.  The shares that are earned during the three years will be issued no earlier than at the end of the three-year term.  In February 2005, the Compensation Committee approved specific targets for the earning of the first one-third of the 2005 performance based deferred shares.  The determination of attainment of those performance targets will be made by the Compensation Committee following Williams' year-end earnings release expected to occur on February 28.  On January 26, 2006, the Compensation Committee approved a specific performance target for the earning of the second one-third of the 2005 performance based deferred shares.  The performance target will be based on the level of EVA attained in 2006.
  For each EVA improvement target discussed herein, the Compensation Committee reviews and approves the EVA calculation to ensure fairness to the Williams' officers, employees and shareholders, taking into account such items as mark-to-market accounting treatment and other non-recurring items or other developments that were not contemplated as part of Williams' business plan EVA targets.
  EVA is a registered trademark of Stern, Stewart and Company.
  Top of the Form
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
  The Williams Companies, Inc.
  February 1, 2006
  By:
  Brian K. Shore
  Name: Brian K. Shore
  Title: Secretary