Why is Jarden buying back its own stock? How did they determine that now is the “right time” to do so?
Using lingo from agency theory, respond to the following: “directors would often overlook missed targets and award big bonuses anyway.”
Do you think the Supreme Court will uphold the healthcare law? If so, how might the law affect corporate decisions with respect to obligations (health care, pensions, etc.) in relation to their employees?
Do you agree it’s the “accounting lobby” stopping the bill because they’d lose SOX section 404 audit fees? Is this a case of over-regulation to the detriment of private capital formation and job creation?
What would you do with $100 billion in “cash” (liquidity)? Is too much liquidity a “bad thing?” If so, why?
Should executive pay be tied to increases in net income that resulted from a release of a previously booked reserve? Should AIG be allowed to keep the deferred tax assets for operating loss carryforwards, even though it was “bought out” by taxpayers?
What kind of loan is this: amortizing, accreting, interest only? How fast is the balance changing over the past several years? Should we be concerned? What should we do, if anything?
What are some potential consequences of allowing firms to change how they calculate the discount rate for measuring defined benefit pension obligations? Do you think firms should be allowed to use a longer time series for averaging? Why or why not?
Why are the standard setters writing new rules for revenue recognition? Who will benefit from the new rules?
Do you think putting the lead audit partner’s name on the audit report would improve “accountability and transparency”? Do you think auditors should tell investors more in their audit reports about “what they [the firm] did”? What specifically, if anything, should the auditor add to the report? What are downsides to this proposal?
Do you think firms should be required to disclose to whom they make political contributions? If you had this information, would it affect decisions you would make with respect to the firm in question? Can you give an example of what might change your behavior with respect to the firm?
If you are the CEO, to whom are you primarily answerable: stockholders or debtholders? What is the rationale for tying your pay (as CEO) to stock prices? What would be the rationale for tying your pay (as CEO) to bond prices? Can you be answerable to both constituencies?
If you were a shareholder in Olympus, what would be your reaction to the new makeup of the board of directors after the accounting scandal? If you wanted a different board structure, describe your options, particularly in light of the Japanese culture and the keiretsu tradition.
If it is a single, global accounting language that is desired, why should not IFRS firms adopt US GAAP, rather than the other way around? Can you say that IFRS is “better”? How could one support such assertion were it to be made? Is “we are running out of patience” a threat? What was the point of that statement?