Lehman Formula

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CompasX

CompasX

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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.
 

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