Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• LEHMAN FORMULA
  
  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.
  
  Back