The self-consistent electron kinetics of Alfv¿n waves on the electron inertial scale is studied using a two-dimensional hybrid-kinetic description. The ions follow a fluid description for Alfv¿n waves at frequencies below the ion cyclotron frequency. The parallel electron dynamics are treated kinetically using particle-in-cell techniques. In this model the electron plasma mode is eliminated and only the physics of the Alfv¿n waves is retained. At sufficiently large amplitudes, it is found that oblique Alfv¿n waves break due to finite electron inertia in a cold plasma. The consequence of wave breaking is the formation of an electron beam which can be unstable to the beam-plasma instability. The electrons supporting the parallel current thermalize into a non-Maxwellian distribution with an energetic tail up to several keV, assuming a reasonable magnetospheric Alfv¿n speed. In hot plasma simulations, electron trapping is the principal mechanism of electron acceleration. It is proposed that wave breaking or electron trapping of oblique Alfv¿n waves at 1 RE can result in electron acceleration and may explain some observed auroral phenomena. ¿ American Geophysical Union 1992