Exhibit 11 THE BEAR STEARNS COMPANIES INC. STATEMENT RE COMPUTATION OF PER SHARE EARNINGS (UNAUDITED) Three Months Ended Nine Months Ended March 27, March 29, March 27, March 29, 1997 1996 1997 1996 ----------- ------------ ------------ ------------ (In thousands, except per share data) Weighted average common and common equivalent shares outstanding: Average Common Stock outstanding 119,995 129,082 122,051 130,806 Average Common Stock equivalents: Common Stock issuable under employee benefit plans 438 420 429 424 Common Stock issuable assuming conversion of CAP Units 26,499 18,800 26,499 18,800 --------- --------- --------- --------- Total weighted average common and common equivalent shares outstanding 146,932 148,302 148,979 150,030 ========= ========= ========= ========= Net income $165,481 $128,871 $450,442 $327,873 Preferred Stock dividend requirements (5,929) (6,047) (17,899) (18,456) Income adjustment (net of tax) applicable to deferred compensation arrangements 7,674 4,841 22,357 12,999 -------- --------- --------- --------- Adjusted net income 167,226 127,665 454,900 322,416 ========= ========= ========= ========= Earnings per share $ 1.14 $ 0.86 $ 3.05 $ 2.15 ========= ========= ========= =========