(MARKET Note 238, HOUSTON, 02/14/2019) — This report was prompted by the notice taken by two NGO’s in Mexico (México Evalúa and Ombudsman Energía México) of the legislative bill that had been submitted to the Lower House by a lawmaker from the MORENA coalition.
The NGOs expressed alarm that, if approved, the amendments to the Law of Petróleos Mexicanos would damage the structure of corporate governance by concentrating authority in the office of the Director General. We examined the proposed amendments and discerned that some should be seen as positive, while others as worse than negative (Table 1). We observe that giving the DG more authority without financial autonomy means little; for there can be no true leadership unless the leader controls the resources to fulfill his or her vision.
To read sample pages of our report, click here.