EXHIBIT 11.1 THE CHARLES SCHWAB CORPORATION Computation of Earnings per Share (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 1996 1995 1996 1995 ---- ---- ---- ---- Net Income $ 70,095 $ 44,419 $117,038 $ 82,795 ====================================================================================================== Shares Primary: Weighted-average number of common shares outstanding 173,865 171,951 173,584 170,903 Common stock equivalent shares related to option plans 5,385 6,176 5,485 6,241 - ------------------------------------------------------------------------------------------------------ Weighted-average number of common and common equivalent shares outstanding 179,250 178,127 179,069 177,144 ====================================================================================================== Fully Diluted: Weighted-average number of common shares outstanding 173,865 171,951 173,584 170,903 Common stock equivalent shares related to option plans 5,414 6,760 5,605 6,792 - ------------------------------------------------------------------------------------------------------ Weighted-average number of common and common equivalent shares outstanding 179,279 178,711 179,189 177,695 ====================================================================================================== Per Share Primary earnings per share $ .39 $ .25 $ .65 $ .47 ====================================================================================================== Fully diluted earnings per share $ .39 $ .25 $ .65 $ .47 ======================================================================================================