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): June 21, 2007
FIRST FEDERAL BANKSHARES, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 0-25509 42-1485449
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(State or Other Jurisdiction) (Commission File No.) (I.R.S. Employer
of Incorporation) Identification No.)
329 Pierce Street, Sioux City, Iowa 51101
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (712) 277-0200
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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. below):
[ ] 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))
Item 8.01. Other Events
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On June 21, 2007, the Board of Directors of First Federal Bankshares, Inc.
(the "Company") approved a plan pursuant to which certain senior executives'
cash compensation over the next three years will be reduced by amounts ranging
from 5% to 10% annually. To offset the reduction in cash compensation, each
executive was granted stock appreciation rights approximately equal in value to
the reduction in cash compensation (based on the Black-Scholes option pricing
methodology). The purpose of the plan is to increase the equity ownership in the
Company of these senior executives, and better align their interests with the
interests of stockholders.
The stock appreciation rights were granted pursuant to the Company's 2006
Stock-Based Incentive Plan, which was approved by stockholders in October 2006.
In accordance with the terms of the Stock-Based Incentive Plan, the stock
appreciation rights were granted at a strike price of $18.50. The stock
appreciation rights vest ratably over three years and expire in ten years. The
stock appreciation rights settle only in common stock of the Company, and do not
vest upon a change in control of the Company.
It is not expected that the implementation of the plan will have a material
effect on the Company's net income or earnings per share because the increase in
non-interest expense associated with the issuance of the stock appreciation
rights will be substantially offset by the reduction in compensation expense.
Item 9.01. Financial Statements and Exhibits
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(a) Not Applicable.
(b) Not Applicable.
(c) Not Applicable.
(d) Not Applicable.
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.
FIRST FEDERAL BANKSHARES, INC.
DATE: June 26, 2007 By: /s/ Michael W. Dosland
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Michael W. Dosland
President and Chief Executive Officer