Primer on Corporate Governance : Mexico

A Primer on Corporate Governance: Mexico describes the macro context in which Mexico is embedded, focusing on its corporate governance system: laws, regulatory bodies, code of good governance, stock market, and the peculiarities of local business groups.

Mexico is a land inhabited by several indigenous civilizations and was conquered by Spain in 1521. The country is mostly a racial mix between the Spanish and native cultures. It is a traditionalist society where family, religion, and culture play a key role. The role of the marketplace is constrained by the government and local interest groups such as unions, political parties, commerce chambers, and private firms. The market for corporate control is scarce. Corporate governance codes are voluntary.

Corporate ownership is concentrated with few institutional investors. Shareholder activism is uncommon. Corporate boards are single tier in nature. CEO duality is common practice. Boards are made mostly of insiders and shareholder representatives. Independent board members hold minority stakes.

A Primer on Corporate Governance: Mexico describes the macro context in which Mexico is embedded. It then focuses on its corporate governance system: laws, regulatory bodies, code of good governance, stock market, and the peculiarities of local business groups. The central part of the book summarizes key characteristics of board structure and networks in the country. The book ends with interviews of two well-known directors and suggestions to move the governance field forward in Mexico.

Jose Luis Rivas is an associate professor at ITAM. He has held different positions at Inverlat Securities and Grupo ADO, where he was a board member for 8 years. He holds a PhD in management from IE Business School and an MBA from Northwestern. His research interests focus on boards of directors, top management teams, and initial public offerings. He has published articles in journals such as Journal of Management Studies and International Business Review. Jose also serves as editorial board member for Corporate Governance: An International Review and was designated as the country expert for Mexico at the International Corporate Governance Society.