EXHIBIT 11 THE BEAR STEARNS COMPANIES INC. STATEMENT RE COMPUTATION OF PER SHARE EARNINGS (UNAUDITED) Three-Months Ended ------------------------------------ September 25, September 26, 1998 1997 ------------------------------------ (In thousands, except per share data) Weighted average common and common equivalent shares outstanding: Average Common Stock outstanding 113,477 118,395 Average Common Stock equivalents: Common Stock issuable under employee benefit plans 461 460 Common Stock issuable assuming conversion of CAP Units 38,147 33,156 ----------------- ----------------- Total weighted average common and common equivalent shares outstanding 152,085 152,011 ================= ================= Net income $ 64,103 $ 161,618 Preferred Stock dividend requirements (10,095) (5,925) Income adjustment (net of tax) applicable to deferred compensation arrangements 6,777 13,532 ----------------- ----------------- Adjusted net income $ 60,785 $ 169,225 ================= ================= Earnings per share $ 0.40 $ 1.11 ================= =================