LEHMAN FORMULA Definition

Bookmark and Share

LEHMAN FORMULA is a compensation formula originally developed by investment bankers Lehman Brothers for investment banking services:
- 5% of the first million dollars involved in the transaction for services rendered
- 4% of the second million
- 3% of the third million
- 2% of the fourth million
- 1% of everything thereafter (above $4 million)
NOTE: Most investment bankers now require an additional multiplier to offset inflation.

Learn new Accounting Terms

DATE OF RECORD is the date which determines which shareholders receive dividends.

FLSA is Fair Labor Standards Act.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.