EXHIBIT 11 THE BEAR STEARNS COMPANIES INC. STATEMENT RE COMPUTATION OF PER SHARE EARNINGS Fiscal Year Fiscal Year Fiscal Year Ended Ended Ended June 30, 1998 June 30, 1997 June 30, 1996 -------------------------------------------------------------- (In Thousands, except per share data) Weighted average common and common equivalent shares outstanding (1): Average Common Stock outstanding 120,456 120,937 129,636 Average Common Stock equivalents: Common Stock issuable assuming conversion of CAP units 30,065 26,474 18,800 Common Stock issuable under employee benefit plans 460 437 419 ---------------------------------------------------------- Total weighted average common and common equivalent shares outstanding 150,981 147,848 148,855 ========================================================== Net income $ 660,429 $ 613,330 $ 490,638 Preferred Stock dividend requirements (31,012) (23,833) (24,493) Income adjustment (net of tax) applicable to deferred compensation arrangements 64,951 31,800 20,205 ========================================================== Adjusted net income $ 694,368 $ 621,297 $ 486,350 ========================================================== Earnings per share $ 4.60 $ 4.20 $ 3.27 ========================================================== - ---------- 1. Adjusted to reflect stock dividends.