LEHMAN FORMULA

The compensation formula of the investment bankers that is developed by Lehman Brothers, which is calculated as follows: 1) 5% of the first million dollars in a transaction; 2) 4% of second million; 3) 3% of third million; 4) 2% of fourth million; and 5) 1% of everything after fourth million. However, investment bankers often demand some multiple of the original formula.