Exhibit 11 THE BEAR STEARNS COMPANIES INC. STATEMENT RE COMPUTATION OF PER SHARE EARNINGS (UNAUDITED) Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 1996 1995 1996 1995 ----------- ------------ ------------ ------------ (In thousands, except per share data) Weighted average common and common equivalent shares outstanding: Average Common Stock outstanding 121,780 130,889 122,835 131,543 Average Common Stock equivalents: Common Stock issuable under employee benefit plans 435 429 426 426 Common Stock issuable assuming conversion of CAP Units 26,566 18,892 26,566 18,892 --------- --------- --------- --------- Total weighted average common and common equivalent shares outstanding 148,781 150,210 149,827 150,861 ========= ========= ========= ========= Net income $176,512 $105,156 $284,961 $199,002 Preferred Stock dividend requirements (5,939) (6,200) (11,970) (12,410) Income adjustment (net of tax) applicable to deferred compensation arrangements 9,185 4,625 14,683 8,159 -------- --------- --------- --------- Adjusted net income 179,758 103,581 287,674 194,751 ========= ========= ========= ========= Earnings per share $ 1.21 $ 0.69 $ 1.92 $ 1.29 ========= ========= ========= =========