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Consolidated Statement of Changes in Stockholders' Equity

UNITED ASSET MANAGEMENT CORPORATION


<TABLE>
<CAPTION>
                                                           COMMON     CAPITAL IN                                     TREASURY
                                            SHARES       STOCK AT      EXCESS OF       RETAINED       TREASURY         SHARES
                                            ISSUED      PAR VALUE      PAR VALUE       EARNINGS         SHARES        AT COST
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<S>                                    <C>            <C>           <C>            <C>             <C>            <C>
December 31, 1994                       64,152,566    $   359,000   $255,556,000   $156,798,000       (379,452)   $(6,555,000)
Issuance of stock                        3,746,008         19,000     67,351,000            ---            ---            ---
Exercise of stock options
  and warrants                           1,318,852          6,000     17,530,000     (7,229,000)     1,304,122     23,870,000
Issuance of warrants                           ---            ---      1,502,000            ---            ---            ---
Purchase of treasury shares                    ---            ---            ---            ---     (2,601,600)   (48,819,000)
Net income                                     ---            ---            ---     67,256,000            ---            ---
Dividends declared
  ($.58 per share)                             ---            ---            ---    (35,275,000)           ---            ---
Dividends declared by pooled
  companies                                    ---            ---            ---       (375,000)           ---            ---
Foreign currency translation
  adjustment                                   ---            ---            ---       (225,000)           ---            ---
Two-for-one common stock split                 ---        308,000       (308,000)           ---            ---            ---
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December 31, 1995                       69,217,426        692,000    341,631,000    180,950,000     (1,676,930)   (31,504,000)
Exercise of stock options
  and warrants                                 ---            ---      4,284,000    (21,302,000)     3,113,184     63,054,000
Issuance of warrants                           ---            ---        102,000            ---            ---            ---
Purchase of treasury shares                    ---            ---            ---            ---     (1,942,300)   (43,718,000)
Net income                                     ---            ---            ---     97,822,000            ---            ---
Dividends declared
  ($.66 per share)                             ---            ---            ---    (42,729,000)           ---            ---
Foreign currency translation
  adjustment                                   ---            ---            ---      2,962,000            ---            ---
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December 31, 1996                       69,217,426        692,000    346,017,000    217,703,000       (506,046)   (12,168,000)
Exercise of stock options
  and warrants                           1,129,151         11,000      9,928,000    (25,852,000)     2,284,398     59,867,000
Issuance of warrants                           ---            ---      1,294,000            ---            ---            ---
Purchase of treasury shares                    ---            ---            ---            ---     (2,867,900)   (76,411,000)
Net loss                                       ---            ---            ---     (4,133,000)           ---            ---
Dividends declared
  ($.77 per share)                             ---            ---            ---    (53,713,000)           ---            ---
Foreign currency translation
  adjustment                                   ---            ---            ---     (5,083,000)           ---            ---
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December 31, 1997                       70,346,577    $   703,000   $357,239,000   $128,922,000     (1,089,548)  $(28,712,000)
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</TABLE>
See Notes to Consolidated Financial Statements.