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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) December 13, 2006

WESTAR ENERGY, INC.

(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code (785) 575-6300

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:

WESTAR ENERGY, INC.

Section 5. Corporate Governance and Management

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On December 13, 2006, our Board of Directors approved new base salaries for Mr. William B. Moore, our President and Chief Operating Officer, Mr. Mark A. Ruelle, our Executive Vice President and Chief Financial Officer, and Mr. Douglas R. Sterbenz, our Executive Vice President, Generation and Marketing, of $450,000, $350,000 and $350,000, respectively. The changes in base salary will become effective on December 23, 2006, January 14, 2007 and April 10, 2007, respectively. These dates are the expiration dates of the current four-year employment letters with Mr. Moore, Mr. Ruelle and Mr. Sterbenz, respectively, pursuant to which they have been paid base salaries of $400,000, $275,000 and $275,000, respectively, over the four-year terms of the employment letters. The employment letters will not be replaced or extended when they expire. None of these officers participates in any bonus or short-term incentive plan. They participate in the same employee benefit plans and programs provided to all of our non-union employees.

On January 2, 2007, Mr. Moore, Mr. Ruelle and Mr. Sterbenz will also receive three-year awards of restricted share units and associated dividend equivalents having a combined grant date value of $550,000, $500,000 and $500,000, respectively, on an annual basis. The number of restricted share units in the award will be determined based on such annual grant date value, our closing stock price on December 29, 2006, and our annualized per share common stock dividend on such date. One-third of the award will vest on each of the first three anniversaries of January 2, 2007 if, in the case of each installment, the officer’s employment with us continues uninterrupted through the applicable vesting date. A prorated portion of the award will also vest if we terminate the officer’s employment other than for cause, the officer terminates his employment for good reason, or the officer’s employment terminates on account of death, disability or retirement. The form of the restricted share unit award document is attached as an exhibit to this report.

Section 9. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

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.

EXHIBIT INDEX

Exhibit 99.1

WESTAR ENERGY

1996 LONG-TERM INCENTIVE AND SHARE AWARD PLAN

RESTRICTED SHARE UNITS AWARD

Westar Energy, Inc. (the “Company”) hereby grants to you «Number_of_Shares» Restricted Share Units pursuant to the Company’s 1996 Long-Term Incentive and Share Award Plan (as amended) (the “Plan”), a copy of which has been delivered to you and made a part hereof, subject to the following terms and conditions and the terms and conditions of the Plan. The terms used in this Award shall have the same meaning as in the Plan, unless the context requires otherwise, and except that “Restricted Share Units” shall refer only to the Restricted Share Units granted under this Award.

If your employment terminates before the third anniversary of the grant date pursuant to a Qualifying Termination (as defined below), then a prorated number of Restricted Share Units (and related dividend equivalents) provided for in this Award, based on the number of days from the grant date to the date of termination of your employment, will become fully vested on the date of termination. For purposes of this Award, the term “Qualifying Termination” means a termination of your employment (i) by the Company other than for Cause (as defined below), (ii) by you for Good Reason (as defined below), or (iii) on account of your death, Disability (as defined below) or

Retirement (as defined below). “Cause” means your conviction of a felony or crime involving moral turpitude, your commission of a willful act of fraud or dishonesty with respect to the Company, your willful and repeated failure to perform substantially your material duties with the Company, your engaging in significant activity that is materially harmful to the reputation of the Company, or your breach of your fiduciary responsibilities to the Company or its shareholders. “Disability” means, on a basis of medical evidence, that you are prevented from any comparable employment with the Company. “Good Reason” means (1) any change in your status as an officer of the Company, (2) a reduction by the Company in your base salary on the grant date or as the same may be increased from time to time thereafter, or (3) any requirement of the Company that you be required to relocate more than 80 miles from your principal office location immediately prior to the grant date provided that your new principal office is located outside the Company’s Kansas service territory on the grant date. “Retirement” means your cessation of services as an employee of the Company on or after the attainment of 50 years of age and 5 years of “Credited Service” as defined in the Westar Energy, Inc. Retirement Plan.