**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: December 21, 2006
  Date of earliest event reported: December 18, 2006

**PFIZER INC.**
  (Exact name of registrant as specified in its charter)

|**Delaware**                                                                                       | **1-3619**               | **13-5315170**                      
|-------------------------------------------------------------------------------------------------- | ------------------------ | ------------------------------------
|(State or other Jurisdiction of incorporation)                                                     | (Commission File Number) | (I.R.S. Employer Identification No.)
|**235 East 42nd Street 
          New York, New York**(Address of principal executive offices)**** |                          | **10017**
        (Zip Code)        

> Registrant's telephone number, including area code:(212) 573-2323 **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 obligation of the registrant under any of the
  following provisions (see General Instruction A.2. below):

[ ] Written communication 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 5.02**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **Departure of Directors or Certain Officers; Election
      of Directors; Appointment of Certain Officers; Compensatory Arrangements
      of Certain Officers.**
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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| ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Henry A. McKinnell served as an executive of Pfizer Inc.
        (“Pfizer”) for 36 years, beginning in 1971. He became Chief
        Executive Officer in 2001, and subsequently entered into an employment
        agreement with Pfizer dated as of January 1, 2001 (the “Employment
        Agreement”). Among other provisions pertaining to Dr. McKinnell’s
        compensation and conditions of service, the Employment Agreement specifies
        the parties' rights and obligations upon the termination of his employment
        for various reasons.
      On July 28, 2006, Pfizer announced that Jeffrey B. Kindler would succeed
        Dr. McKinnell as Chief Executive Officer of Pfizer effective July 31,
        2006 (“Resignation Date”). At that time, it was agreed that
        Dr. McKinnell would continue to serve as the Chairman of the Board of
        Directors of Pfizer (the “Board”) and as a Pfizer employee
        through February 28, 2007 (“Termination Date”), so there would
        be an orderly transition of his responsibilities. On December 18, 2006,
        Dr. McKinnell resigned from his position as Chairman of the Board.
      The Board’s replacement of Dr. McKinnell as Chief Executive Officer
        with Mr. Kindler contractually obligated Pfizer under the Employment Agreement
        to provide Dr. McKinnell with certain severance payments and benefits.
      In addition, Pfizer is obligated to provide Dr. McKinnell with pension
        benefits under Pfizer’s retirement annuity plan and supplemental
        retirement annuity plan as well as distributions with respect to prior
        compensation that Dr. McKinnell elected to defer under Pfizer’s
        supplemental savings plan and other deferred compensation plans for personal
        tax-planning purposes. A major payment obligation to Dr. McKinnell is
        for pension benefits with an estimated lump sum value of approximately
        $82 million, which was previously disclosed in Pfizer’s 2006 Definitive
        Proxy Statement filed on March 16, 2006. Another major obligation is the
        payment of approximately $78 million of nonqualified deferred compensation
        owed to Dr. McKinnell, which will be paid in accordance with his payment
        elections under such plans. This amount includes approximately $67 million
        of Dr. McKinnell’s own money from prior compensation that he had
        earned and voluntarily elected to defer with Pfizer. Pfizer has had the
        use of these funds in the business during the deferral period and has
        credited Dr. McKinnell with investment returns applicable to each deferral.
        No above-market or preferential earnings have been credited. This amount
        also includes matching contributions to which he, like other Pfizer employees
        participating in the plan, was entitled to receive under Pfizer’s
        supplemental savings plan.
      On December 18, 2006, Pfizer entered into an agreement with Dr. McKinnell
        which details the terms of his departure from Pfizer (the “Agreement”).
        Under the Agreement, Dr. McKinnell has agreed to step down from his position
        on the Board and to retire from employment and all other positions with
        Pfizer then held by him on the Termination Date. Dr. McKinnell will continue
        to be paid his regular base salary, and continue to be eligible to participate
        in Pfizer’s employee benefit plans and programs and to receive certain
        protective services from Pfizer, through the Termination Date.
      The amounts and benefits payable to Dr. McKinnell as a result of his
        departure as Chief Executive Officer do not exceed or are less than the
        amounts and benefits that Pfizer would have been obligated to pay under
        the Employment Agreement had his employment terminated without cause on
        the Resignation Date. Under the Agreement, Dr. McKinnell will receive
        the following payments and benefits as a result of his departure: (i)
        severance of $11,941,000, payable in a single lump sum on March 15, 2007,
        which equals two times the sum of his base salary and 2005 bonus, (ii)
        payment on March 15, 2007 of a pro-rata bonus for 2006 in the amount of
        $2,158,300, which equals his 2005 bonus prorated through the Resignation
        Date, (iii) payment on March 15, 2007 of $305,644 for accrued but unused
        vacation time through the Termination Date, (iv) the benefits, or payment
        of $576,573 on March 15, 2007 for the nominal value of the benefits, Dr.
        McKinnell would receive under Pfizer’s savings plan, supplemental
        savings plan and medical, dental, life insurance, long-term disability
        and financial counseling programs if his employment with Pfizer had continued
        for two additional years, (v) full vesting of all unvested restricted
        stock and restricted stock unit awards, with a value of $5,783,156, based
        on the closing price of Pfizer common stock on December 13, 2006, and
        full vesting of all unvested stock options with continued exercisability
        of all stock options through the expiration dates of such options, each
        in accordance with their original terms and conditions (including Dr.
        McKinnell’s compliance with restrictions on competition, disclosure
        or misuse of confidential information and engaging in certain activities
        harmful to Pfizer), and (vi) continued medical and dental coverage under
        Pfizer’s retiree plans for himself and his partner, subject to the
        terms of such plans. In addition, under the Agreement, Dr. McKinnell’s
        outstanding performance-contingent share and performance share awards
        will be settled in accordance with the original terms and conditions of
        such awards (including Dr. McKinnell’s compliance with restrictions
        on competition, disclosure or misuse of confidential information and engaging
        in certain activities harmful to Pfizer) by the delivery of a number of
        shares of common stock calculated based on Pfizer’s actual performance
        relative to the pharmaceutical peer group during each applicable performance
        period, assuming for this purpose that Dr. McKinnell remained employed
        by Pfizer through the date of payment, except that the amount of the award
        for the performance periods that commenced on January 1, 2003 and January
        1, 2005 and with respect to 198,000 target shares subject to the award
        for the performance period that commenced on January 1, 2004 will be prorated
        for the number of days during the applicable performance period Dr. McKinnell
        was employed by Pfizer. If target level performance is achieved with respect
        these outstanding awards, Dr. McKinnell would receive in settlement of
        such awards 719,533 shares of Pfizer common stock with an aggregate value
        of $18,268,943, based on the closing price of Pfizer common stock on December
        13, 2006. Additional information about the terms and conditions of Dr.
        McKinnell’s performance-contingent share and performance share awards
        is contained in Pfizer’s Definitive Proxy Statement filed on March
        16, 2006 and Pfizer’s Form 8-K filed on February 24, 2006. Dr. McKinnell
        did not and will not receive any additional grants of share or equity-based
        awards after the Resignation Date.
      If any payment or benefit required under the Agreement cannot be provided
        or made at the specified time without incurring sanctions under Section
        409A of the Internal Revenue Code, then such benefit or payment shall
        be provided in full at the earliest time when such sanctions will not
        be imposed. If the severance, pro-rata bonus or accrued vacation payments
        described above are delayed to avoid sanctions under Section 409A, Pfizer
        has agreed to pay interest at a market rate on these amounts during such
        delay.
      In the Agreement, Dr. McKinnell has agreed to be bound by customary confidentiality
        and non-competition covenants following the Terminate Date, to provide
        reasonable litigation assistance to Pfizer and its counsel following the
        Terminate Date and to execute a release of claims in favor of Pfizer.
      Dr. McKinnell’s and Pfizer’s rights and obligations under
        the Employment Agreement (other than Dr. McKinnell’s right to indemnification,
        which survives) and the Change in Control Severance Agreement between
        Pfizer and Dr. McKinnell, as amended, have been terminated as a result
        of the execution of the Agreement.
      Nonqualified Deferred Compensation
      Dr. McKinnell will receive approximately $78 million of nonqualified
        deferred compensation in accordance with Pfizer’s supplemental savings
        and other deferred compensation plans (excluding the supplemental retirement
        annuity plan), which includes approximately $67 million of his own money
        from prior compensation he had earned and voluntarily elected to defer.
        Amounts deferred at the election of Dr. McKinnell were previously disclosed
        in the Summary Compensation Table contained in the Proxy Statement for
        the fiscal year in which earned in accordance with applicable SEC disclosure
        requirements then in effect.
      Set forth below is certain additional information about Dr. McKinnell’s
        nonqualified deferred compensation under Pfizer’s supplemental savings
        and other deferred compensation plans, including Pfizer’s contributions,
        aggregate earnings and the balance of Dr. McKinnell’s account under
        such plans on December 13, 2006.

Nonqualified Deferred Compensation

|Program                                    | Dr. McKinnell’s Contributions | Pfizer’sContributions | AggregateEarnings | Balance onDecember 13, 2006
|------------------------------------------ | ----------------------------- | --------------------- | ----------------- | ---------------------------
|Supplemental Savings (401(k) Type) Plan(1) | $10,770,489                   | $2,508,029            |                   | $13,278,518                
|Deferred Performance-Contingent Shares (2) | $37,599,112                   |                       | $4,169,977        | $41,769,089                
|Deferred Bonuses (3)                       | $18,788,495                   |                       | $4,073,839        | $22,862,334                
|Totals                                     | $67,158,096                   | $2,508,029            | $8,243,816        | $77,909,941                



|(1) The amounts shown reflect net contributions
        and return on those contributions on December 13, 2006.
        (2) Dr. McKinnell voluntarily elected to defer receipt of 1,480,863 shares
        of Pfizer common stock and received 164,237 shares (the value of which
        is shown in the “Aggregate Earnings” column) as reinvested
        dividends on the deferred shares. The values shown are based on the closing
        price of Pfizer common stock on December 13, 2006 ($25.39).
        (3) Dr. McKinnell voluntarily elected to defer receipt of $18,788,495
        of bonus amounts and has received $4,073,839 as investment income on those
        deferrals. Dr. McKinnell has deferred all or a portion of nine bonus awards.
        Over that period, he has earned 120% of the Federal long-term rate on
        those deferrals, which averaged an annual return of 5.7%.
      Pension Benefits
      Dr. McKinnell is entitled to receive pension benefits under Pfizer’s
        retirement annuity plan and supplemental retirement annuity plan as previously
        disclosed in Pfizer’s Definitive Proxy Statement filed on March
        16, 2006. Set forth below are the number of years of plan service, his
        estimated annual pension payable on February 28, 2007, if selected, and
        the estimated lump sum value of his annual pension on February 28, 2007
        under these plans.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

Estimated Pension Benefits

|                                                                 | Number of Years of Plan Service | Annual Pension Payable on February 28,
        2007 | Lump Sum Value of Annual Pension (1)
|---------------------------------------------------------------- | ------------------------------- | --------------------------------------------------- | ------------------------------------
|Retirement Annuity Plan and Supplemental Retirement Annuity Plan | 35                              | $6,646,142                                          | $82,305,823                         
|                                                                 |                                 |                                                     |                                     

(1) The lump sum amount was estimated based on the current interest rate of
  4.69%, which is the most recent published rate. The actual amount will be determined
  based on the interest rate effective for retirements on February 28, 2007.

Additional information about the retirement annuity plan and supplemental retirement
  annuity plan is contained in Pfizer’s Definitive Proxy Statement filed
  on March 16, 2006.



|**Item 9.01** | **Financial Statements and Exhibits** | 
|------------- | ------------------------------------- | 

|(d) Exhibits |                                                                                     | 
|------------ | ----------------------------------------------------------------------------------- | 
|Exhibit 10   | Agreement between Pfizer Inc. and Henry A. McKinnell dated December 18,
      2006. | 



**SIGNATURE**

Under the requirements of the Securities Exchange Act of 1934, the registrant
  has caused this report to be signed on its behalf by the authorized undersigned.

|                         |  | PFIZER INC.                                                                                                 
|------------------------ |  | ------------------------------------------------------------------------------------------------------------
|                         |  |                                                                                                             
|                         |  | By: /s/ Margaret M. Foran
        Margaret M. Foran                                                         
|                         |  | Title: Senior Vice President-Corporate
        Governance, Associate General Counsel and Corporate Secretary
|Dated: December 21, 2006 |  |                                                                                                             

> 

EXHIBIT INDEX

|Exhibit No. | Description                                                                          
|----------- | -------------------------------------------------------------------------------------
|            |                                                                                      
|10          | Agreement between Pfizer Inc. and Henry A. McKinnell dated December
        18, 2006.