are there regulatory requirements for using the lehman formula 
while there may not be specific regulations dictating the use of the lehman formula regulatory bodies may scrutinize compensation arrangements including those based on the formula to ensure they do not encourage excessive risk taking or unethical behavior the bottom linethe lehman formula is a method used in financial transactions particularly in investment banking to calculate compensation based on the transaction s value it employs various methods such as mda tva and pva to determine fees or commissions aligning compensation with the size and structure of the deal the formula can be customized per deal though firms must be mindful of misalignment of incentives 