Mark-to-Market Accounting for Banks and Thrifts: Lessons from the Danish Experience

Victor L Bernard; Robert C. Merton; Krishna G. Palepu

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Article | Journal of Accounting Research | spring 1995

Mark-to-Market Accounting for Banks and Thrifts: Lessons from the Danish Experience

by Victor L Bernard, Robert C. Merton and Krishna G. Palepu

Keywords: Fair Value Accounting; Denmark;

Format: Print

32 pages

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Citation:

Bernard, Victor L., Robert C. Merton, and Krishna G. Palepu. "Mark-to-Market Accounting for Banks and Thrifts: Lessons from the Danish Experience." Journal of Accounting Research 33, no. 1 (spring 1995): 1–32.

About the Authors

Robert C. Merton

John and Natty McArthur University Professor, Emeritus

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Krishna G. Palepu

Ross Graham Walker Professor of Business Administration

Accounting and Management

General Management

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Tesla's CEO Compensation Plan

Krishna G. Palepu and Sarah Mehta

Tesla’s board of directors proposed an unusual compensation plan for the company’s CEO Elon Musk. The plan payouts were entirely contingent on achieving very ambitious market value, sales, and EBIT targets over the next ten years. If all the targets were achieved, Tesla would be one of the most valuable companies in the world, and Musk would receive the highest compensation of any CEO in U.S. corporate history. If the targets were not achieved, Musk would receive nothing. Proxy advisors (ISS and Glass Lewis) expressed serious reservations about the plan and urged shareholders to vote against it. Should shareholders approve or reject the plan?

Keywords: CEO compensation; compensation committee; Corporate Governance; Executive Compensation; Governing and Advisory Boards; Business and Shareholder Relations; Auto Industry; United States;

Citation:
Palepu, Krishna G., and Sarah Mehta. "Tesla's CEO Compensation Plan." Harvard Business School Case 118-085, April 2018. (Revised August 2019.) View Details

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The Fall of Enron

Paul Healy and Krishna Palepu

The case traces the rise of Enron, covering the company's business innovations, personnel management, and risk management processes. It then examines the company's dramatic fall including the extension of its trading model into questionable new businesses, the financial reporting problems, and governance breakdowns inside and outside the firm. The case offers students an opportunity to explore why Enron failed and to understand the systemic problems in governance that affected its board of directors, the audit committee, the external auditors, and financial analysts.

Keywords: Risk Management; Management Practices and Processes; Crime and Corruption; Financial Reporting; Corporate Governance; Governing and Advisory Boards;

Citation:
Healy, Paul, and Krishna Palepu. "The Fall of Enron." Harvard Business School Case 109-039, November 2008. (Revised July 2019.) View Details

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Aperture Investors

Krishna G. Palepu, George Serafeim and David Lane

Aperture Investors is a startup investment firm that seeks to disrupt the asset management industry through competitive differentiation by charging investors primarily when its portfolio managers outperform the marketplace. Headed by Wall Street veteran Peter Kraus and backed with substantial and patient seed capital, Aperture seeks to attract both star portfolio managers and assets from mutual funds and hedge funds. Kraus believes that his innovative business model addresses the current dysfunctional fee and incentive structures in the industry, which have led to long-term market underperformance, and that Aperture will address the reasons that are motivating investors to shift to cheaper, passively-managed index and exchange-traded funds.

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Citation:
Palepu, Krishna G., George Serafeim, and David Lane. "Aperture Investors." Harvard Business School Case 119-053, April 2019. (Revised July 2019.) View Details

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Mark-to-Market Accounting for Banks and Thrifts: Lessons from the Danish Experience

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