diff --git a/src/ng/compile.js b/src/ng/compile.js
index 34e38137606f..58cda4452eab 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -1840,49 +1840,42 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
 
 
       function getControllers(directiveName, require, $element, elementControllers) {
-        var value, retrievalMethod = 'data', optional = false;
-        var $searchElement = $element;
-        var match;
-        if (isString(require)) {
-          match = require.match(REQUIRE_PREFIX_REGEXP);
-          require = require.substring(match[0].length);
+        var value;
 
-          if (match[3]) {
-            if (match[1]) match[3] = null;
-            else match[1] = match[3];
-          }
-          if (match[1] === '^') {
-            retrievalMethod = 'inheritedData';
-          } else if (match[1] === '^^') {
-            retrievalMethod = 'inheritedData';
-            $searchElement = $element.parent();
-          }
-          if (match[2] === '?') {
-            optional = true;
+        if (isString(require)) {
+          var match = require.match(REQUIRE_PREFIX_REGEXP);
+          var name = require.substring(match[0].length);
+          var inheritType = match[1] || match[3];
+          var optional = match[2] === '?';
+
+          //If only parents then start at the parent element
+          if (inheritType === '^^') {
+            $element = $element.parent();
+          //Otherwise attempt getting the controller from elementControllers in case
+          //the element is transcluded (and has no data) and to avoid .data if possible
+          } else {
+            value = elementControllers && elementControllers[name];
+            value = value && value.instance;
           }
 
-          value = null;
-
-          if (elementControllers && retrievalMethod === 'data') {
-            if (value = elementControllers[require]) {
-              value = value.instance;
-            }
+          if (!value) {
+            var dataName = '$' + name + 'Controller';
+            value = inheritType ? $element.inheritedData(dataName) : $element.data(dataName);
           }
-          value = value || $searchElement[retrievalMethod]('$' + require + 'Controller');
 
           if (!value && !optional) {
             throw $compileMinErr('ctreq',
                 "Controller '{0}', required by directive '{1}', can't be found!",
-                require, directiveName);
+                name, directiveName);
           }
-          return value || null;
         } else if (isArray(require)) {
           value = [];
-          forEach(require, function(require) {
-            value.push(getControllers(directiveName, require, $element, elementControllers));
-          });
+          for (var i = 0, ii = require.length; i < ii; i++) {
+            value[i] = getControllers(directiveName, require[i], $element, elementControllers);
+          }
         }
-        return value;
+
+        return value || null;
       }