Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Devin Ryan – Sandler O’Neill & Partners, LLP.
Devin Ryan – Sandler O’Neill & Partners, LLP
Can you give us any additional detail in to what businesses or products the additional 8% reduction in headcount came from during the quarter?
Andrew S. Duff
It was really Devin spread out across all the businesses including support areas, the largest concentration being investment.
Devin Ryan – Sandler O’Neill & Partners, LLP
Then just kind of a general question here, when the markets eventually do return to a kind of more normal environment, just given the platform that you have in place today, can you give us a sense of what you think is an attainable ROE or at least just some qualitative commentary around that?
Debbra L. Schoneman
I think one of the things to look at there is given the performance awards that we have in place for management which looks at a low teens number, it’s actually 11%. So, as things return to normal we would look at something more in the low teens.
Devin Ryan – Sandler O’Neill & Partners, LLP
Then just lastly here, the $3.9 million in charges related to the travel and legal expenses for deals that weren’t completed, did any of this reverse if the deals do get completed or are those just charges that are gone?
Debbra L. Schoneman
In theory yes, if those transactions completed in a timely basis where we felt that the expenses were indeed related to that specific deal then you could do that but we anticipate it is highly likely that would not occur.
Operator
Your next question comes from Steve Stelmach – Friedman, Billings, Ramsey & Co.
Steve Stelmach – Friedman, Billings, Ramsey & Co.
Just a few questions, one first on the comp expense, a clarification, is the $49 million that you recorded in the fourth quarter, is that a decent run rate all else being equal given the changes in the stock-based comp or does that not reflect those changes that you made?
Debbra L. Schoneman
I think actually fourth quarter is fairly typical of what you’d see at these revenue levels given our change in account treatment because fourth quarter 2008 really reflects more of the go forward accounting treatment where we will have the accrual of equity based on the revenues that are generated in that quarter and don’t have the amortization of historical grants any longer occurring in that period.
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