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  <TITLE> The Shaw Group 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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  	October 12, 2006
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  	The Shaw Group Inc.
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Louisiana
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  	1-12227
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  	72-1106167
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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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  	4171 Essen Lane, Baton Rouge, Louisiana
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  	70809
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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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  	225-932-2500
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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>
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  <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 October 12, 2006, the Board of Directors of The Shaw Group Inc., (the "Company"), determined the director compensation to be paid to Michael J. Mancuso, who was appointed on August 17, 2006, by the Company&#x2019;s Board of Directors to serve in a newly created ninth director position, for the interim period between his appointment to the Board on August 17, 2006 and the date of the Company&#x2019;s 2007 Annual Meeting of Shareholders to be held in January 2007.<br><br>	The standard annual compensation paid to members of the Company&#x2019;s Board of Directors is $150,000, $75,000 payable in cash and $75,000 payable 50% in options and 50% in phantom shares of the Company&#x2019;s common stock, which options and phantom shares are issuable under the Company&#x2019;s 2005 Non-Employee Director Stock Incentive Plan (the "Director Plan").  Because the Director Plan does not allow for the issuance of options or phantom shares unless a director is elected by the Company&#x2019;s shareholders, the Company&#x2019;s Board of Directors has determined to pay Mr. Mancuso the standard annual director compensation ($150,000) totally in cash, in an amount pro-rated from the date of his appointment.<br><br>	Accordingly, the Board agreed that Mr. Mancuso will receive $410.96 per day ($150,000/365 days) for each day commencing on the date of his appointment as a director by the Board (August 17, 2006) until the earlier of the date of the Company&#x2019;s 2007 Annual Meeting of Shareholders or the date he no longer serves as a director of the Company.   Mr. Mancuso is expected to be nominated to be elected as a director by the shareholders at the 2007 Annual Meeting of the Shareholders, and in the event he is elected as a director by the shareholders, he will become entitled to receive awards under the Director Plan.
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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 Shaw Group Inc.
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  <I>
  	October 16, 2006
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  	&nbsp;
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  	By:
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  <I>
  	Gary P. Graphia
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  <I>
  	Name: Gary P. Graphia
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  <I>
  	Title: Secretary and General Counsel
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_15564.htm", "description": "LIVE FILING", "secsgml_size_bytes": 10044}]
metadata_filer: {"company-data": {"conformed-name": "SHAW GROUP INC", "cik": "0000914024", "assigned-sic": "3490", "irs-number": "721106167", "state-of-incorporation": "LA", "fiscal-year-end": "0831"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-12227", "film-number": "061146377"}, "business-address": {"street1": "4171 ESSEN LANE", "street2": "1ST FLOOR", "city": "BATON ROUGE", "state": "LA", "zip": "70809", "phone": "2259322500"}, "mail-address": {"street1": "4171 ESSEN LANE", "street2": "11TH FLOOR", "city": "BATON ROUGE", "state": "LA", "zip": "70809"}}
text: The Shaw Group 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):
  October 12, 2006
  The Shaw Group Inc.
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Louisiana
  1-12227
  72-1106167
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  4171 Essen Lane, Baton Rouge, Louisiana
  70809
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  225-932-2500
  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 October 12, 2006, the Board of Directors of The Shaw Group Inc., (the "Company"), determined the director compensation to be paid to Michael J. Mancuso, who was appointed on August 17, 2006, by the Company's Board of Directors to serve in a newly created ninth director position, for the interim period between his appointment to the Board on August 17, 2006 and the date of the Company's 2007 Annual Meeting of Shareholders to be held in January 2007.
  The standard annual compensation paid to members of the Company's Board of Directors is $150,000, $75,000 payable in cash and $75,000 payable 50% in options and 50% in phantom shares of the Company's common stock, which options and phantom shares are issuable under the Company's 2005 Non-Employee Director Stock Incentive Plan (the "Director Plan").  Because the Director Plan does not allow for the issuance of options or phantom shares unless a director is elected by the Company's shareholders, the Company's Board of Directors has determined to pay Mr. Mancuso the standard annual director compensation ($150,000) totally in cash, in an amount pro-rated from the date of his appointment.
  Accordingly, the Board agreed that Mr. Mancuso will receive $410.96 per day ($150,000/365 days) for each day commencing on the date of his appointment as a director by the Board (August 17, 2006) until the earlier of the date of the Company's 2007 Annual Meeting of Shareholders or the date he no longer serves as a director of the Company.   Mr. Mancuso is expected to be nominated to be elected as a director by the shareholders at the 2007 Annual Meeting of the Shareholders, and in the event he is elected as a director by the shareholders, he will become entitled to receive awards under the Director Plan.
  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 Shaw Group Inc.
  October 16, 2006
  By:
  Gary P. Graphia
  Name: Gary P. Graphia
  Title: Secretary and General Counsel