---

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): June 21, 2006

 

---

TARGACEPT, INC.

(Exact name of registrant as specified in its charter)

 

---

 

Delaware (State or other jurisdiction of incorporation)		000-51173 (Commission File Number)		56-2020050 (IRS Employer Identification No.)
200 East First Street, Suite 300 Winston-Salem, North Carolina (Address of principal executive offices)				27101 (Zip Code)

(336) 480–2100

Registrant’s telephone number, including area code

 

---

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))

 

---

---

Item 1.01

Entry Into a Material Definitive Agreement.

On June 21, 2006, the Compensation Committee of the Board of Directors of Targacept, Inc. (the “Company”) approved an increase to the current base salary of Alan A. Musso, the Company’s Vice President, Chief Financial Officer, Secretary and Treasurer, from $220,375 to $245,000 on an annualized basis.

---

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.

 

				TARGACEPT, INC.
Date: June 27, 2006				/s/    Alan A. Musso
				Alan A. Musso Vice President, Chief Financial Officer, Secretary and Treasurer