to be confused with the Double Lehman - both the percentages and the scale were adjusted, instead of the percentages only. In addition, the percentage is held constant at 3% above $8 million: 10% of the first $1 million, plus 9% of the second $1 million, plus 8% of the third $1 million, plus 7% of the fourth $1 million, plus 6% of the fifth $1 million, plus 5% of the sixth $1 million, plus 4% of the seventh $1 million, plus 3% of the eighth $1 million and everything above. This resulted in an approximately 3x adjustment to the original formula, vs 6x for inflation. Additional Variations Despite Modern Lehman being the most common form in use, this does not mean that rates are not still negotiated on a case by case. Some banks seek higher rates (such as Triple Lehman), and some companies push for lower rates, particularly for $100 million and higher transactions. In addition, some companies increasingly run transactions in-house. The most notable example was the Google IPO, where Google performed the analytic, execution and structuring requirements, used a Dutch Auction for pricing, and banks for their distribution network. For larger transactions in particular, it is common for the bulk of the fee payments to be in the form of retainers and ongoing fees. Typically, underwriters also get warrants on the company stock with a public offering and try to get the company that is raising the capital to pay the underwriter's legal fees which are usually significant. See also Lehman Fee Calculator References Investment