On the contrary, meeting the management might introduce biases in the investor’s analysis. Company analysis is a written document that consists of the overall evaluation and assessment of an organization’s performance in terms of finances, feasibility, and productivity. They should be only paid a nominal sitting fees. So for all practical purposes she is not independent. Analysts who follow this method seek out companies priced below their real worth. She should analyse the business expansion done by organic growth and ignore the capacity additions through acquisitions while she assesses the competence of the management.Successful execution of increase in production capacity especially by green-field/brown-field plants is a good indicator of competent management. Some work more than 40 hours per week. Most investors realize that it's important for a company to have a good management team. In Satyam case, the merger of the software company Satyam with real estate & infra company Maytas was approved by a committee which had only independent directors and these directors were who’s who of corporate & academic world.Therefore, most of the times, an investor’s only safeguard is to have a shareholder friendly majority shareholder.On similar lines, the salary/commission of independent directors is immaterial if the majority shareholder is not concerned for minority shareholders.Keep up the good work. I like to invest in the companies run by such managements and stay invested as their partner in the growth of the business over long periods.Related party transaction section is a goldmine of the information for management analysis of any company. Looking at the financial results each quarter is important, but it doesn't tell the whole story. from MAGROissued public notices in Malayalam dailies undertaking to honour all obligations to MAGRO’s depositorscommittee of its members, under the chairmanship of Mr. Jagdish Capoorour share price slid from its face value of Rs 10 to as low as Rs 8I actually ended up buying back shares with a market value of Rs 8 at a price of Rs 10proposal of Sri.P.V.Chandran to annul the commission part of his remunerationContractual Agreement with M/s. Even otherwise, we have seen that independent directors are rarely able to safeguard minority shareholders.E.g. Instead, in management analysis, an investor should focus on assessing the project execution skills of the promoter/management. To an outside observer, the current arrangement of payment of commission on sales to Excelum Enterprises by Rexnord Electronics & Controls Limited seems like paying to Excelum for the skill that its proprietor (Mr Kunal Tanna) has learnt by working at Rexnord itself.Moreover, a look at the salary structure of the promoter family for FY2014 highlights that Mr Kunal Tanna was being paid the highest remuneration in the company even higher than the salary of founder promoter & Chairman Mr Kishore Chand Talwar.I believe that it is good if relatives of the promoter join the company as employees/directors and contribute to the growth of the business and take a commensurate salary for their contribution. I completely agree with this belief and therefore assume that the analyst which assessed DCB Bank for the report, would have dedicated at least 90% of the research time in assessing the management of DCB Bank.On October 13, 2015, DCB Bank came up with its future business strategy and informed the public through stock exchange filings:The Bank has done in depth planning by assessing various parameters like probable break even, payback, return on equity, return on assets etc. FII investment is not a great comfort. Thus, management should have the business smarts to run a … You may read my analysis of Ambika Cotton Mills Limited in the following article:Out of multiple factors that I liked about Ambika Cotton Mills Limited, the reasonable salary being drawn by Mr Chandra along with the moderate level of salaries being paid by the company to potential successors (daughters of Mr Chandran), was an important parameter that helped me take the final investment decision about the company.As I have mentioned in the article above that bad habits persist, similarly, good habits also persist in people.We saw another example of this in December 2015 when Ambika Cotton Mills Limited filed the following notification in stock exchanges:This is to inform you that on the recommendation of Nomination and Remuneration committee the Board of Directors at their meeting held on 07/11/2015 have accepted the The notification mentioned that Mr P. V. Chandran has decided against accepting the commission part of his remuneration, which was calculated at 2% of the net profits of Ambika Cotton Mills Limited.