Just how independent are those corporate directors?
That's a question experts say investors ought to ask when they look at a company. One issue worth examining: If companies are doing business with directors or their firms, and how much.
An analysis of the 30 companies that make up the Dow Jones industrial average, for example, found that at least 22 had such dealings, known as related-party transactions, with directors or executives last year; another two said they might, but the dealings didn't meet disclosure thresholds.
Although these activities have been undergoing more scrutiny since the meltdown at Enron Corp. in 2001, the prevalence of the dealings within the Dow 30 has actually increased. Five years ago, only 18 companies reported at least one transaction.
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