------------------------------ OMB APPROVAL ------------------------------ OMB Number 3235-0362 Expires: January 31, 2005 Estimated average burden hours per response ....... 1.0 ------------------------------ U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 5 ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940 [_] Check box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). [_] Form 3 Holdings Reported [_] Form 4 Transactions Reported ________________________________________________________________________________ 1. Name and Address of Reporting Person* Palmer Charles Robert -------------------------------------------------------------------------------- (Last) (First) (Middle) 2800 Post Oak Blvd., Suite 5450 -------------------------------------------------------------------------------- (Street) Houston Texas 77056-6127 -------------------------------------------------------------------------------- (City) (State) (Zip) ________________________________________________________________________________ 2. Issuer Name and Ticker or Trading Symbol Rowan Companies, Inc. (RDC) ________________________________________________________________________________ 3. IRS Identification Number of Reporting Person, if an Entity (Voluntary) ________________________________________________________________________________ 4. Statement for Month/Year December 2002 ________________________________________________________________________________ 5. If Amendment, Date of Original (Month/Year) ________________________________________________________________________________ 6. Relationship of Reporting Person(s) to Issuer (Check all applicable) [X] Director [_] 10% Owner [X] Officer (give title below) [_] Other (specify below) Chairman of the Board and CEO ________________________________________________________________________________ 7. Individual or Joint/Group Filing (Check applicable line) [X] Form filed by one Reporting Person [_] Form filed by more than one Reporting Person ________________________________________________________________________________ ================================================================================ TABLE I -- NON-DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED ================================================================================ 3. 4. 5. 6. 7. 2. 2A. Trans- Securities Acquired (A) Amount of Owner- Nature of Trans- Deemed action or Disposed of (D) Securities ship Indirect action Execution Code (Instr. 3, 4 and 5) Beneficially Form: Beneficial Date Date, if (Instr. 8) Owned at end Direct Owner- any of Issuer's (D) or ship 1. (Month/ (Month/ (A) Fiscal Year Indirect Title of Security Day/ Day/ or (I) (Instr. 3) Year) Year) Amount (D) Price (Instr. 3 and 4) (Instr. 4) (Instr. 4) ------------------------------------------------------------------------------------------------------------------------------- Common Stock 9,376(1) I By 401(k) Plan ------------------------------------------------------------------------------------------------------------------------------- See Table II ------------------------------------------------------------------------------------------------------------------------------- *If the Form is filed by more than one Reporting Person, see Instruction 4(b)(v). PERSONS WHO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER. (Over) SEC 2270 (9-02) FORM 5 (continued) TABLE II -- DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED (E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES) ================================================================================ 9. 10. Number Owner- of ship 2. Deriv- of Conver- 5. 7. ative Deriv- 11. sion Number of Title and Amount Secur- ative Nature or 3A. Derivative 6. of Underlying 8. ities Secur- of Exer- Deemed 4. Securities Date Securities Price Bene- ity: In- cise 3. Execution Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct Price Trans- Date, if action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene- 1. of action any Code of(D) (Month/Day/Year) Amount ative at End In- ficial Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of Year direct Owner- Derivative ative (Month/ (Month/ 8) 4 and 5) Date Expira- Number ity (I) ship Security Secur- Day/ Day/ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr. 3) ity Year) Year) (A) (D) cisable Date Title Shares 5) (Instr. 4) 4) 4) ------------------------------------------------------------------------------------------------------------------------------------ (2)Option (Right to Buy) $13.12 4/26/02 A 34,636 4/26/03 4/26/12 Common Stock 34,636 ------------------------------------------------------------------------------------------------------------------------------------ (2)Option (Right to Buy) $13.12 4/26/02 A 34,636 4/26/04 4/26/12 Common Stock 34,636 ------------------------------------------------------------------------------------------------------------------------------------ (2)Option (Right to Buy) $13.12 4/26/02 A 34,636 4/26/05 4/26/12 Common Stock 34,636 ------------------------------------------------------------------------------------------------------------------------------------ (2)Option (Right to Buy) $13.12 4/26/02 A 34,636 4/26/06 4/26/12 Common Stock 34,636 ------------------------------------------------------------------------------------------------------------------------------------ 138,544 D ------------------------------------------------------------------------------------------------------------------------------------ Explanation of Responses: (1)At December 31, 2002, the Reporting Person's Rowan Common Stock balance under the Company's 401(k) plan (a unitized fund) was as shown, such number of shares, which fluctuates, being calculated as equivalent values based upon the value of the total units divided by the corresponding closing price of the underlying Rowan Companies Stock on that date. (2)This option was granted April 26, 2002 under the Rowan Companies, Inc. 1998 Nonqualified Stock Option Plan in a transaction exempt under Rule 16b-3. This option becomes exercisable 25% for each year from date of grant. By: /s/Charles Robert Palmer 1/16/03 ------------------------------------ ------------------------- **Signature of Reporting Person Date **Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, See Instruction 6 for procedure. Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number. Page 2 SEC 2270 (9-02)