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)

Because of inflation, investment bankers often seek some multiple of the original Lehman formula.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Lehman Formula — The Lehman Formula is a formula to define the compensation a broker should receive when handling a large transaction for a client. The formula usually applies to the entire value of the transaction.The art of M A financing and refinancing: a… …   Wikipedia

  • Formula One Group — Formula One portal …   Wikipedia

  • Formula One — Das Logo der Formel 1 Szene aus dem Großen Preis der USA 2003 Die Formel 1 (kurz auch F1) ist eine Zusammenfassung der Regeln, Richtlinien und Bedingungen, in deren Rahmen die Formel 1 Weltmeisterschaft (offizie …   Deutsch Wikipedia

  • Lehman scale — The Lehman Scale is a traditional schedule of business broker and advisers’ chargeable fees. The scale is based on the transaction size of the deal, and is normally payable by the vendor(s) of the business once the purchaser s funds have… …   Wikipedia

  • FIA Formula One World Championship — Das Logo der Formel 1 Szene aus dem Großen Preis der USA 2003 Die Formel 1 (kurz auch F1) ist eine Zusammenfassung der Regeln, Richtlinien und Bedingungen, in deren Rahmen die Formel 1 Weltmeisterschaft (offizie …   Deutsch Wikipedia

  • Herbert H. Lehman High School — Infobox Secondary school name = Herbert Lehman High School principal = Dr. Janet Saraceno type = Public secondary grades = 9–12 city = The Bronx, New York state = New York country = USA enrollment = 4240 established = 1970 website =… …   Wikipedia

  • 2006 Formula One season — F1 2006 redirects here. For the video games based on the 2006 Formula One season, see F1 06 F1 CE . The 2006 Formula One season was the 57th FIA Formula One World Championship season. It began on March 12, 2006 included 18 races, and ended on… …   Wikipedia

  • The Formula — La Formule La Formule (The Formula) est un film américain réalisé par John G. Avildsen, sorti en 1980. Sommaire 1 Synopsis 2 Fiche technique 3 Distribution 4 L …   Wikipédia en Français

  • SLEC Holdings — Ltd. est la société qui gère les droits audiovisuels et autres revenus commerciaux de la Formule 1. Créée par l homme d affaire britannique Bernie Ecclestone en 1996, elle est nommée SLEC d après Slavica Ecclestone, sa femme à l époque. En 2000,… …   Wikipédia en Français

  • Net capital rule — The uniform net capital rule is a rule created by the U.S. Securities and Exchange Commission ( SEC ) in 1975 to regulate directly the ability of broker dealers to meet their financial obligations to customers and other creditors.[1] Broker… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.