A family affair…

October 13, 2003

You have to wonder if while the SEC is poking around at Cardinal Health and taking a closer look at a $22 million litigation settlement as the company announced last week, regulators find other things worth paying closer attention to. In its proxy filed late last week, Cardinal (CAH) discloses several related party transactions with companies tied to Cardinal CEO Robert D. Walter and his three sons, one of whom also sits on CAH’s board of directors. Even though the money changing hands between these various companies isn’t huge, particularly for a company the size of Cardinal, investors should always be concerned when a large publicly traded company does deals with private companies that have family ties to the CEO.

Leave a Reply

You must be logged in to post a comment.