EXHIBIT 11 THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (Dollars in Thousands Except Per Share Data) Three Months Ended June 30 --------------------------- Basic 1999 1998<F1> ------------ ------------ Net income $ 139,409 $ 118,511 Weighted average number of common shares outstanding 273,862,855 271,437,338 Earnings per common and common equivalent share $ .51 $ .44 ============ ============ Three Months Ended June 30 ---------------------------- Diluted 1999 1998<F1> ------------ ------------ Net income $ 139,409 $ 118,511 Add: After tax savings on assumed conversion of subordinated debentures and notes 2,813 2,132 Dividends paid net of related income tax applicable to restricted stock 160 153 ------------ ------------ Net income, as adjusted $ 142,382 $ 120,796 ============ ============ Weighted average number of common shares outstanding 273,862,855 271,437,338 Weighted average number of incremental shares in connection with restricted stock and assumed exercise of stock options 10,302,720 10,820,290 Assumed conversion of subordinated debentures and notes 8,812,792 6,697,942 ------------ ------------ Total 292,978,367 288,955,570 ============ ============ Earnings per common and common equivalent share $ .49 $ .42 ============ ============ <F1> All share data adjusted to reflect two-for-one stock split effective July 15, 1999. THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (Dollars in Thousands Except Per Share Data) Six Months Ended June 30 -------------------------- Basic 1999 1998 <F1> ----------- ----------- Net income $ 184,194 $ 156,250 Weighted average number of common shares outstanding 273,198,358 270,905,717 Earnings per common share $ .67 $ .58 =========== =========== Six Months Ended June 30 -------------------------- Diluted 1999 1998 <F1> ----------- ----------- Net income $ 184,194 $ 156,250 Add: After tax interest savings on assumed conversion of subordinated debentures and notes 3,898 - Dividends paid net of related income tax applicable to restricted stock 303 276 ----------- ----------- Net income, as adjusted $ 188,395 $ 156,526 =========== =========== Weighted average number of common shares outstanding 273,198,358 270,905,717 Weighted average number of incremental shares in connection with restricted stock and assumed exercise of stock options 10,559,202 10,453,915 Assumed conversion of subordinated debentures and notes 6,693,000 10,641 ----------- ----------- Total 290,450,560 281,370,273 =========== =========== Earnings per common and common equivalent share $ .65 $ .56 =========== =========== Note: The computation of diluted EPS for 1999 and 1998 excludes the assumed conversion of the 1.87% and 1.8% Convertible Subordinated Notes, respectively, because they were anti-dilutive. <F1> All share data adjusted to reflect two-for-one stock split effective July 15, 1999.