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<TITLE>Filed by Bowne Pure Compliance</TITLE>
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<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND
EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): February 25, 2009</B>

<P style="font-size: 24pt" align="center"><B>ROWAN COMPANIES, INC.<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter) </FONT>


<TABLE style="font-size: 10pt; text-align: center" cellspacing="0" cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="32%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="33%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="32%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>DELAWARE</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>1-5491</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>75-0759420</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
 </TR>

</TABLE>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="49%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="49%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>2800 POST OAK
BOULEVARD<BR>
SUITE 5450<BR>
HOUSTON, TEXAS<BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>77056</B></TD>
 </TR>
 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(713) 621-7800</B>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="30%" border="0">

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  <TD width="100%">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-bottom: #000000 1px solid" nowrap><B>&nbsp;</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">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:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>



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</DIV>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">1
</DIV>

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<DIV style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">

<P style="font-size: 10pt" align="justify"><B>Item&nbsp;5.02 Departure of
Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers.</B>


<P style="font-size: 10pt" align="justify">On January&nbsp;21, 2009, the Compensation Committee (the
&#8220;Committee&#8221;) of the Board of Directors of Rowan Companies, Inc.
(the &#8220;Company&#8221;) met and made the following recommendations
regarding compensation for the Company&#8217;s named executive officers
(&#8220;NEOs&#8221;). Such recommendations were reviewed and approved by the
Board of Directors in its meeting on February&nbsp;25, 2009, after the
Board&#8217;s review of the Company&#8217;s earnings for the year ended
December&nbsp;31, 2008.

<P style="font-size: 10pt" align="justify"><U><B>Short-Term Incentive
Compensation Award for Fiscal 2008</B></U>

<P style="font-size: 10pt" align="justify">For 2008, the NEOs were eligible for
awards under the Company&#8217;s two integrated 2008 short-term incentive
compensation plans: a broad-based profit sharing plan (&#8220;Profit Sharing
Plan&#8221;) and a targeted bonus plan (&#8220;Bonus Plan&#8221;). Awards under
the Bonus Plan may only be made after the Profit Sharing Plan has been fully
paid.

<P style="font-size: 10pt" align="justify">For 2008, the Bonus Plan was divided
into two equal pieces: under one, payouts depended solely on Drilling Division
EBITDA relative to budget; and under the other, payouts depended on the degree
to which the individual met specific operational and other individual and group
goals. Bonus plan payouts were determined as follows:

<P>
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">

 <TR
style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000"
valign="top">
  <TD style="background: none transparent scroll repeat 0% 0%" width="4%">&nbsp;</TD>
  <TD nowrap align="left" width="3%">&#8226;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD>
<DIV style="text-align: justify">50% of payout was determined by the Drilling
Division&nbsp;EBITDA relative to budget. If the Company had positive net income
on a consolidated basis and Drilling Division&nbsp;EBITDA was at least 75% of
budget, after any payout under our Profit Sharing Plan, then the Bonus Plan
payout would be calculated (on a sliding scale) as follows:</DIV>
</TD>
 </TR>

</TABLE>

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="92%" border="0">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="50%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="45%">&nbsp;</TD>
 </TR>
 <TR style="font-size: 10pt" valign="bottom">
  <TD style="border-bottom: #000000 1px solid" nowrap align="left"><B>EBITDA as
a % of Budget</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid" nowrap align="center"><B>% of
Payout</B></TD>
 </TR>
<!-- End Table Head -->
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 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">Less than 75%</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">No payout</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">87.5 %</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">50% of target</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">100%</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">100% of target</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">112.5%</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">150% of target</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">125% or more</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">200% of target</TD>
 </TR>
<!-- End Table Body -->

</TABLE>
</DIV>

<P style="font-size: 10pt; margin-left: 8%" align="justify">In 2008, our
Drilling Division&nbsp;EBITDA, as adjusted by the Compensation Committee for
certain non-recurring and other items, was within 2% of the budgeted amount,
and therefore the nondiscretionary payouts were 94% based on the scale above.

<P>
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">

 <TR
style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000"
valign="top">
  <TD style="background: none transparent scroll repeat 0% 0%"
width="4%">&nbsp;</TD>
  <TD nowrap align="left" width="3%">&#8226;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD>
<DIV style="text-align: justify">50% of payout was determined by performance
against specific individual and group goals approved by the Board (with respect
to the CEO) or by the CEO (with respect to the other NEOs). The Committee
reviews the individual&#8217;s performance against his goals and uses its
discretion to determine what percentage payout such individual will receive.
Each NEO may receive between 0% and 200% of this discretionary portion of the
bonus.</DIV>
</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt; margin-left: 8%" align="justify">Payouts under these
two categories are independent of each other and are reduced by any payout
under the Profit Sharing Plan.

<P style="font-size: 10pt" align="center">&nbsp;

<P style="font-size: 10pt" align="center">2
</DIV>

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<DIV style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">

<P style="font-size: 10pt" align="justify">With respect to the discretionary
portion of the Bonus Plan awards for the four highest paid NEOs, other than the
CEO, the Committee recommended that they receive 200% of their targeted
discretionary portion. Total amounts payable to the named executive officers
for all 2008 bonus amounts are shown below:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%" border="0">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="60%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="6%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="6%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="6%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
 </TR>
 <TR style="font-size: 10pt" valign="bottom">
  <TD style="border-bottom: #000000 1px solid" nowrap align="left"><B>NEO Name
and Title</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid" nowrap align="center"
colspan="3"><B>Non-<BR>Discretionary</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid" nowrap align="center"
colspan="3"><B>Discretionary</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid" nowrap align="center"
colspan="3"><B>Total</B></TD>
 </TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
 <TR style="background: #cceeff" valign="bottom">
  <TD>
<DIV style="margin-left: 10px; text-indent: -10px">D. P. Russell, EVP, Drilling
Operations</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">122,200</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">260,000</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">382,200</TD>
  <TD>&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD>
<DIV style="margin-left: 10px; text-indent: -10px">M. A. Keller, EVP, Business
Development</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">98,700</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">210,000</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">308,700</TD>
  <TD>&nbsp;</TD>
 </TR>
 <TR style="background: #cceeff" valign="bottom">
  <TD>
<DIV style="margin-left: 10px; text-indent: -10px">J. L. Buvens, EVP,
Legal</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">89,676</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">190,800</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">280,476</TD>
  <TD>&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD>
<DIV style="margin-left: 10px; text-indent: -10px">W. H Wells, VP, Finance and
CFO</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">89,676</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">190,800</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">280,476</TD>
  <TD>&nbsp;</TD>
 </TR>
<!-- End Table Body -->

</TABLE>
</DIV>

<P style="font-size: 10pt" align="justify"><U><B>Short-Term Incentive
Compensation Plan for Fiscal 2009</B></U>

<P style="font-size: 10pt" align="justify">Approximately 85 employees are
eligible to participate in the 2009 Bonus Plan. The plan contains five
financial and operational metrics, each based on the Drilling Division&#8217;s
performance. To the extent the various metrics are achieved, the bonus pool
will be funded from 0 to 200% of the eligible employees&#8217; aggregate target
bonus amount.
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="86%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="6%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
 </TR>
 <TR style="font-size: 10pt" valign="bottom">
  <TD style="border-bottom: #000000 1px solid" nowrap
align="left"><B>Metric</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid" nowrap align="center"
colspan="3"><B>Percent of Pool<BR>Allocated</B></TD>
 </TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
 <TR style="background: #cceeff" valign="bottom">
  <TD>
<DIV style="margin-left: 10px; text-indent: -10px">Achievement of budgeted
EBITDA for 2009(1)</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD nowrap align="right">&nbsp;</TD>
  <TD align="right">25</TD>
  <TD nowrap>%</TD>
 </TR>
 <TR valign="bottom">
  <TD>
<DIV style="margin-left: 10px; text-indent: -10px">Actual costs compared to
2009 budget</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD nowrap align="right">&nbsp;</TD>
  <TD align="right">25</TD>
  <TD nowrap>%</TD>
 </TR>
 <TR style="background: #cceeff" valign="bottom">
  <TD>
<DIV style="margin-left: 10px; text-indent: -10px">Safety performance(2)</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD nowrap align="right">&nbsp;</TD>
  <TD align="right">20</TD>
  <TD nowrap>%</TD>
 </TR>
 <TR valign="bottom">
  <TD>
<DIV style="margin-left: 10px; text-indent: -10px">Performance regarding
capital projects(3)</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD nowrap align="right">&nbsp;</TD>
  <TD align="right">20</TD>
  <TD nowrap>%</TD>
 </TR>
 <TR style="background: #cceeff" valign="bottom">
  <TD>
<DIV style="margin-left: 10px; text-indent: -10px">Contracted non-productive
time(4)</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD nowrap align="right">&nbsp;</TD>
  <TD align="right">10</TD>
  <TD nowrap>%</TD>
 </TR>
<!-- End Table Body -->

</TABLE>
</DIV>

<DIV style="border-bottom: 1px solid #000000; width=15%">
</DIV>

<P>
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">

 <TR
style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000"
valign="top">
  <TD style="background: none transparent scroll repeat 0% 0%"
width="2%">&nbsp;</TD>
  <TD nowrap align="left" width="3%">(1)</TD>
  <TD width="1%">&nbsp;</TD>
  <TD>
<DIV style="text-align: justify">If the Company has positive net income on a
consolidated basis and Drilling EBITDA of at least 80% of budget, all after any
profit sharing payout, then payment will be calculated (on a sliding scale)
depending on level of achievement.</DIV>
</TD>
 </TR>

</TABLE>


<P>
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">

 <TR
style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000"
valign="top">
  <TD style="background: none transparent scroll repeat 0% 0%"
width="2%">&nbsp;</TD>
  <TD nowrap align="left" width="3%">(2)</TD>
  <TD width="1%">&nbsp;</TD>
  <TD>
<DIV style="text-align: justify">Safety performance is determined with
reference to the Company&#8217;s total recordable incident rate for 2009,
compared to Company goals.</DIV>
</TD>
 </TR>

</TABLE>


<P>
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">

 <TR
style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000"
valign="top">
  <TD style="background: none transparent scroll repeat 0% 0%"
width="2%">&nbsp;</TD>
  <TD nowrap align="left" width="3%">(3)</TD>
  <TD width="1%">&nbsp;</TD>
  <TD>
<DIV style="text-align: justify">Relates to our newbuild program and other
capital projects; payout will vary depending on adherence to budget, delivery
schedule, original scope of work and certain other factors.</DIV>
</TD>
 </TR>

</TABLE>


<P>
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">

 <TR
style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000"
valign="top">
  <TD style="background: none transparent scroll repeat 0% 0%"
width="2%">&nbsp;</TD>
  <TD nowrap align="left" width="3%">(4)</TD>
  <TD width="1%">&nbsp;</TD>
  <TD>
<DIV style="text-align: justify">Relates to unanticipated down time while a rig
is operating under contract for a customer.</DIV>
</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="justify">Once 2009 achievement of the various
metrics is known, the Compensation Committee will determine the funding of the
bonus pool. The Committee is free to use its discretion to increase or decrease
the bonus pool as it sees fit. The CEO will then allocate the funded bonus pool
among the Company&#8217;s operating and corporate groups based on each
group&#8217;s performance. Individual managers will then further allocate bonus
payouts to employees based on individual performance of employees. In addition,
each of our CEO, Executive Vice President-Legal and our Vice President-Finance
and CFO will have 10% of his target bonus determined by the performance of our
manufacturing subsidiary as evidenced by achievement under the
subsidiary&#8217;s bonus plan.

<P style="font-size: 10pt" align="center">3

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">3
</DIV>

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<DIV
style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">

<P style="font-size: 10pt" align="justify"><U><B>2009 Adjustments to Base
Salary, Bonus Plan and Long-Term Incentive Targets for the NEOs</B></U>

<P style="font-size: 10pt" align="justify">On February&nbsp;27, 2009, the
Compensation Committee met to review the base salary and short-term and
long-term incentive targets of the NEOs. The Committee made no adjustments to
compensation levels for 2009 for any of the NEOs.

<P style="font-size: 10pt" align="justify"><B>Item&nbsp;9.01. Financial
Statements and Exhibits</B>

<P style="font-size: 10pt" align="justify"><B>None.</B>

<P style="font-size: 10pt" align="center"><B>SIGNATURES</B>


<P style="font-size: 10pt; text-indent: 2%" align="justify"><B>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.</B>


<P>
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%" border="0">

 <TR valign="top">
  <TD width="48%">&nbsp;</TD>
  <TD width="4%">&nbsp;</TD>
  <TD width="48%">&nbsp;</TD>
</TR>

<TR>
  <TD>&nbsp;</TD>
  <TD align="left" colspan="2">ROWAN COMPANIES, INC.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR>
  <TD>&nbsp;</TD>
  <TD align="left">By:</TD>
  <TD align="left" style="border-bottom: 1px solid #000000">/s/ William H. Wells</TD>
</TR>

<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="left">William H. Wells<BR>
Vice President &#150; Finance and CFO<BR>
(Principal Financial Officer)</TD>
</TR>
</TABLE>

<P style="font-size: 10pt" align="justify">Dated: March&nbsp;2, 2009

<P style="font-size: 10pt" align="center">4

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">4
</DIV>
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</HTML>
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Filed by Bowne Pure Compliance
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): February 25, 2009
ROWAN COMPANIES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
1-5491
75-0759420
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
2800 POST OAK
BOULEVARD
SUITE 5450
HOUSTON, TEXAS
77056
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number,
including area code:
(713) 621-7800
(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:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02 Departure of
Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers.
On January 21, 2009, the Compensation Committee (the
"Committee") of the Board of Directors of Rowan Companies, Inc.
(the "Company") met and made the following recommendations
regarding compensation for the Company's named executive officers
("NEOs"). Such recommendations were reviewed and approved by the
Board of Directors in its meeting on February 25, 2009, after the
Board's review of the Company's earnings for the year ended
December 31, 2008.
Short-Term Incentive
Compensation Award for Fiscal 2008
For 2008, the NEOs were eligible for
awards under the Company's two integrated 2008 short-term incentive
compensation plans: a broad-based profit sharing plan ("Profit Sharing
Plan") and a targeted bonus plan ("Bonus Plan"). Awards under
the Bonus Plan may only be made after the Profit Sharing Plan has been fully
paid.
For 2008, the Bonus Plan was divided
into two equal pieces: under one, payouts depended solely on Drilling Division
EBITDA relative to budget; and under the other, payouts depended on the degree
to which the individual met specific operational and other individual and group
goals. Bonus plan payouts were determined as follows:
•
50% of payout was determined by the Drilling
Division EBITDA relative to budget. If the Company had positive net income
on a consolidated basis and Drilling Division EBITDA was at least 75% of
budget, after any payout under our Profit Sharing Plan, then the Bonus Plan
payout would be calculated (on a sliding scale) as follows:
EBITDA as
a % of Budget
% of
Payout
Less than 75%
No payout
87.5 %
50% of target
100%
100% of target
112.5%
150% of target
125% or more
200% of target
In 2008, our
Drilling Division EBITDA, as adjusted by the Compensation Committee for
certain non-recurring and other items, was within 2% of the budgeted amount,
and therefore the nondiscretionary payouts were 94% based on the scale above.
•
50% of payout was determined by performance
against specific individual and group goals approved by the Board (with respect
to the CEO) or by the CEO (with respect to the other NEOs). The Committee
reviews the individual's performance against his goals and uses its
discretion to determine what percentage payout such individual will receive.
Each NEO may receive between 0% and 200% of this discretionary portion of the
bonus.
Payouts under these
two categories are independent of each other and are reduced by any payout
under the Profit Sharing Plan.
2
With respect to the discretionary
portion of the Bonus Plan awards for the four highest paid NEOs, other than the
CEO, the Committee recommended that they receive 200% of their targeted
discretionary portion. Total amounts payable to the named executive officers
for all 2008 bonus amounts are shown below:
NEO Name
and Title
Non-
Discretionary
Discretionary
Total
D. P. Russell, EVP, Drilling
Operations
122,200
260,000
382,200
M. A. Keller, EVP, Business
Development
98,700
210,000
308,700
J. L. Buvens, EVP,
Legal
89,676
190,800
280,476
W. H Wells, VP, Finance and
CFO
89,676
190,800
280,476
Short-Term Incentive
Compensation Plan for Fiscal 2009
Approximately 85 employees are
eligible to participate in the 2009 Bonus Plan. The plan contains five
financial and operational metrics, each based on the Drilling Division's
performance. To the extent the various metrics are achieved, the bonus pool
will be funded from 0 to 200% of the eligible employees' aggregate target
bonus amount.
Metric
Percent of Pool
Allocated
Achievement of budgeted
EBITDA for 2009(1)
25
%
Actual costs compared to
2009 budget
25
%
Safety performance(2)
20
%
Performance regarding
capital projects(3)
20
%
Contracted non-productive
time(4)
10
%
(1)
If the Company has positive net income on a
consolidated basis and Drilling EBITDA of at least 80% of budget, all after any
profit sharing payout, then payment will be calculated (on a sliding scale)
depending on level of achievement.
(2)
Safety performance is determined with
reference to the Company's total recordable incident rate for 2009,
compared to Company goals.
(3)
Relates to our newbuild program and other
capital projects; payout will vary depending on adherence to budget, delivery
schedule, original scope of work and certain other factors.
(4)
Relates to unanticipated down time while a rig
is operating under contract for a customer.
Once 2009 achievement of the various
metrics is known, the Compensation Committee will determine the funding of the
bonus pool. The Committee is free to use its discretion to increase or decrease
the bonus pool as it sees fit. The CEO will then allocate the funded bonus pool
among the Company's operating and corporate groups based on each
group's performance. Individual managers will then further allocate bonus
payouts to employees based on individual performance of employees. In addition,
each of our CEO, Executive Vice President-Legal and our Vice President-Finance
and CFO will have 10% of his target bonus determined by the performance of our
manufacturing subsidiary as evidenced by achievement under the
subsidiary's bonus plan.
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2009 Adjustments to Base
Salary, Bonus Plan and Long-Term Incentive Targets for the NEOs
On February 27, 2009, the
Compensation Committee met to review the base salary and short-term and
long-term incentive targets of the NEOs. The Committee made no adjustments to
compensation levels for 2009 for any of the NEOs.
Item 9.01. Financial
Statements and Exhibits
None.
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.
ROWAN COMPANIES, INC.
By:
/s/ William H. Wells
William H. Wells
Vice President – Finance and CFO
(Principal Financial Officer)
Dated: March 2, 2009
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