During an Assembly meeting, the Board of Directors of oil company YPF approved a salary increase of nearly 40% above inflation for its members. The proposal was accepted by 98.6% of the votes, including those of the chief and vice chief of staff. Despite the structure in which directors represent the interests of shareholders, including the State (51%) and private shareholders (49%), YPF operates as a private Limited Company. The company obtains most of its income from the sale of fuel and uses its own reserves in case of losses.
Last year, YPF had a negative accounting result mainly due to the revaluation of its gas and oil fields that will be put up for sale. However, the company’s operating result before interest, taxes, depreciation, and amortization was positive. A consulting firm determined that director compensation was below market level, leading to the approved salary increase. The energy industry in Argentina has been less affected by income crisis, with oil unions recently closing a parity deal.
During the General Assembly meeting, fees were approved for directors and members of the Supervisory Commission for the fiscal year 2024. The increase in nominal terms compared to the previous year was significant. The average inflation expected by the IMF for Argentina was taken into account when approving the salary increase. In addition to Horacio Marin, CEO and President of YPF’s Board of Directors, other board members include executives with backgrounds in energy and politics. The board comprises individuals with diverse expertise and various government officials and industry professionals make up its membership.
