EXHIBIT 11 Page 1 of 2 THE INTERPUBLIC GROUP OF COMPANIES, INC. COMPUTATION OF EARNINGS PER SHARE <F1> (Dollars in Thousands Except Per Share Data) Year Ended December 31 1996 1995 1994 1993 1992 PRIMARY: Net Income before effect of accounting changes $205,205 $129,812 $115,247 $125,279 $111,913 Effect of accounting changes - - (21,780) (512) (24,640) Add: Dividends paid net of related income tax applicable to the Restricted Stock Plan 354 427 349 311 365 Net income, as adjusted $205,559 $130,239 $ 93,816 $125,078 $ 87,638 Weighted average number of common shares outstanding 77,895,650 75,756,630 73,363,084 72,607,363 72,168,964 Weighted average number of incremental shares in connection with assumued exercise of stock options based on the treasury stock method using average market price 1,411,485 1,141,532 1,010,179 1,088,155 1,321,447 Weighted average number of incremental shares in connection with the Restricted Stock Plan based on the treasury stock method using average unamortized deferred compensation and average market price 986,043 1,281,910 1,197,182 1,520,003 1,484,207 Total 80,293,178 78,180,072 75,570,445 75,215,521 74,974,618 Primary earnings per common and common equivalent share $2.56 $1.66 $1.24 $1.66 $1.17 <FN> <F1> Restated to reflect the two-for-one stock split effected in June 1992 in the form of a 100% stock dividend. EXHIBIT 11 Page 2 of 2 THE INTERPUBLIC GROUP OF COMPANIES, INC. COMPUTATION OF EARNINGS PER SHARE <F2> (Dollars in Thousands Except Per Share Data) Year Ended December 31 1996 1995 1994 1993 1992 FULLY DILUTED: Net Income before effect of accounting changes $ 205,205 $ 129,812 $ 115,247 $ 125,279 $ 111,913 Effect of accounting changes - - (21,780) (512) (24,640) After tax interest savings on assumed conversion of subordinated debentures 6,410 6,217 6,074 5,941 4,385 Add: Dividends paid net of related income tax applicable to the Restricted Stock Plan 384 461 366 330 375 Net income, as adjusted $ 211,999 $ 136,490 $ 99,907 $ 131,038 $ 92,033 Weighted average number of common shares outstanding 77,895,650 75,756,630 73,363,084 72,607,363 72,168,964 Assumed conversion of subordinated debentures 2,977,668 3,002,130 3,002,130 3,002,130 2,251,598 Weighted average number of incremental shares in connection with assumed exercise of stock options based on year-end market price when higher than average market prices and market prices on dates of exercise and termination 1,479,582 1,281,282 1,015,837 1,097,745 1,333,738 Weighted average number of incremental shares in connection with the Restricted Stock Plan based on ending unamortized deferred compensation and ending or average market price, whichever is higher 1,070,376 1,386,711 1,247,564 1,598,026 1,525,738 Total 83,423,276 81,426,753 78,628,615 78,305,264 77,280,038 Fully diluted earnings per common common equivalent share $2.54 $1.68 $1.27 $1.67 $1.19 <FN> <F2> Restated to reflect the two-for-one stock split effected in June 1992 in the form of a 100% stock dividend.