A B737-800 flight crew reported severe compressor stall on climbout. They ran the procedure; shut down the engine; and returned to departure airport.

Narrative

It was a normal gate departure; taxi; and takeoff. [We had] an intermediate level off at 6;000 FT and an associated power reduction. We were re-cleared to FL230. I applied climb thrust and started climbing the aircraft. It was a stable climb with autopilot engaged to about 9;500 FT when the number two engine experienced a severe compressor stall (loud bang; aircraft shook). The autopilot disconnected due to the number two generator coming off-line. I maintained control of the aircraft; leveled at 10;000 FT and communicated to ATC while the Captain ran memory items and then the QRH procedure for Engine Fire/Severe Damage/Separation/Seizure. (In addition to the compressor stall; the engine was indicating low N1/N2; and increasing EGT (did not exceed 900C.) We elected to return to our departure airport. I coordinated with ATC for the return and continued flying the aircraft while the Captain coordinated with the Flight Attendants and Company/Dispatch. After all the items were handled and the transfer of the aircraft was accomplished; I ran the One Engine Inoperative Checklist and ensured the landing data/flaps 15 return was reviewed. The Captain made an uneventful; heavyweight; flaps 15 landing (115;000 LBS with a 100-200 FPM touchdown). The crash crews reported no external signs of smoke/fire/damage so we taxied the aircraft to the gate.