 |
Definition of 'Lehman Formula'
A compensation formula developed by Lehman Brothers for investment banking services. The structure is as follows:
-5% of the first million dollars involved in the transaction
-4% of the second million
-3% of the third million
-2% of the fourth million
-1% of everything thereafter (above $4 million)
|
 |
Investopedia explains 'Lehman Formula'
Because of inflation, investment bankers often seek some multiple of the original Lehman formula.
|
-
This company survived many financial crises in its long history. Find out what finally drove it to bankruptcy.
Read More »
-
The subprime collapse could mean doom and gloom for housing, equities and the overall economy.
Read More »
-
A career in this high-stress field can be very rewarding for the right person. Find out if you have what it takes.
Read More »
-
|
|
