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<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


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

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>November
16, 2005<BR>
(Date of earliest event reported)</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Potash Corporation of Saskatchewan Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


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    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
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    <TD width="31%">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Canada</B><BR>
(State or other jurisdiction of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1-1035</B><BR>
(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Not Applicable</B><BR>
(IRS Employer Identification No.)</TD>
</TR>
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</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">122
&#150; 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> Avenue South<BR>
Saskatoon, Saskatchewan, Canada S7K 7G3<BR>
(Address of principal executive offices, including zip code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">306 / 933-8500<BR>
(Registrant&#146;s telephone number, including area code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Not Applicable</B><BR>
(Former name or former address, if changed since last report)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 (see General
Instruction A.2.):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

</DIV>

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<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Entry into a Material Definitive Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
November&nbsp;16, 2005, our Board of Directors approved our 2006
Medium Term Incentive Plan (the &#147;Plan&#148;). The Plan will commence on January&nbsp;1,
2006 and replace our existing Long Term Incentive Plan (2003-2005),
the performance period of which ends on December&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Plan is intended to reward senior executives and other
key employees for superior performance over an extended period and for continued contributions to
our long-term success. The performance objectives under the Plan are designed to further align the
interests of senior executives and other key employees with those of shareholders by linking the
vesting of awards to the total return to shareholders over the three-year performance period ending
December&nbsp;31, 2008 (called &#147;Total Shareholder Return&#148; or &#147;TSR&#148;). TSR measures the capital
appreciation in the shares, including dividends paid over the performance period, and thereby
simulates the actual investment performance of the shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The senior executives and
other key employees that will be eligible to participate in the Plan
and the number of units to be awarded to such participants will be determined as of January&nbsp;1,
2006, the beginning of the three-year performance period. The number
of units awarded to a Plan
participant generally will be based on the participant&#146;s salary, position and potential for
contribution to our success, and the share price of our common stock at the beginning of the
performance period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the
Plan, vesting of one-half of the awards will be based on increases in the TSR over
the three-year performance period ending December&nbsp;31, 2008. Vesting of the remaining one-half of
the awards will be based on the extent to which the TSR matches or exceeds the TSR of the common
shares of a group of peer companies over the performance period. The peer group of companies will
consist of those companies that are included in the Dow Jones U.S. Basic Materials Companies Index.
Vested units will be settled in cash based on the share price of our common stock generally at the
end of the performance period. None of the units will vest if minimum TSR-based performance
objectives are not achieved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants generally will be required to continue in a qualifying position with us
throughout the performance period as one of the conditions to vesting. However, if a participant&#146;s
employment terminates earlier due to the participant&#146;s retirement, disability or death or we
terminate a participant&#146;s employment without just cause, the participant will be entitled to a cash
payment in settlement of a pro rata number of units, with vesting determined based on the
achievement of performance objectives as of the date of termination. A participant who resigns or
whose employment is terminated for just cause will forfeit all rights to any units granted under
the Plan.
</DIV>

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

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SIGNATURE</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

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<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>POTASH CORPORATION OF SASKATCHEWAN INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ JOSEPH PODWIKA
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Joseph Podwika&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated: November 21, 2005&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Vice President, General Counsel and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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


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e8vk
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
November
16, 2005
(Date of earliest event reported)
Potash Corporation of Saskatchewan Inc.
(Exact name of registrant as specified in its charter)
Canada
(State or other jurisdiction of incorporation)
1-1035
(Commission File Number)
Not Applicable
(IRS Employer Identification No.)
122
– 1
st
Avenue South
Saskatoon, Saskatchewan, Canada S7K 7G3
(Address of principal executive offices, including zip code)
306 / 933-8500
(Registrant's telephone number, including area code)
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 (see General
Instruction A.2.):
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 1.01
Entry into a Material Definitive Agreement
On
November 16, 2005, our Board of Directors approved our 2006
Medium Term Incentive Plan (the "Plan"). The Plan will commence on January 1,
2006 and replace our existing Long Term Incentive Plan (2003-2005),
the performance period of which ends on December 31, 2005.
The
Plan is intended to reward senior executives and other
key employees for superior performance over an extended period and for continued contributions to
our long-term success. The performance objectives under the Plan are designed to further align the
interests of senior executives and other key employees with those of shareholders by linking the
vesting of awards to the total return to shareholders over the three-year performance period ending
December 31, 2008 (called "Total Shareholder Return" or "TSR"). TSR measures the capital
appreciation in the shares, including dividends paid over the performance period, and thereby
simulates the actual investment performance of the shares.
The senior executives and
other key employees that will be eligible to participate in the Plan
and the number of units to be awarded to such participants will be determined as of January 1,
2006, the beginning of the three-year performance period. The number
of units awarded to a Plan
participant generally will be based on the participant's salary, position and potential for
contribution to our success, and the share price of our common stock at the beginning of the
performance period.
Under the
Plan, vesting of one-half of the awards will be based on increases in the TSR over
the three-year performance period ending December 31, 2008. Vesting of the remaining one-half of
the awards will be based on the extent to which the TSR matches or exceeds the TSR of the common
shares of a group of peer companies over the performance period. The peer group of companies will
consist of those companies that are included in the Dow Jones U.S. Basic Materials Companies Index.
Vested units will be settled in cash based on the share price of our common stock generally at the
end of the performance period. None of the units will vest if minimum TSR-based performance
objectives are not achieved.
Participants generally will be required to continue in a qualifying position with us
throughout the performance period as one of the conditions to vesting. However, if a participant's
employment terminates earlier due to the participant's retirement, disability or death or we
terminate a participant's employment without just cause, the participant will be entitled to a cash
payment in settlement of a pro rata number of units, with vesting determined based on the
achievement of performance objectives as of the date of termination. A participant who resigns or
whose employment is terminated for just cause will forfeit all rights to any units granted under
the Plan.
SIGNATURE
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.
POTASH CORPORATION OF SASKATCHEWAN INC.
By:
/s/ JOSEPH PODWIKA
Name:
Joseph Podwika
Dated: November 21, 2005
Title:
Vice President, General Counsel and Secretary