The Board of Directors of the oil company YPF approved a salary increase close to 40% above inflation for its members during an Assembly meeting. The proposal was accepted by 98.6% of the votes, including those of the chief and vice chief of staff. The directors of YPF represent the interests of shareholders, including the State (51%) and private shareholders (49%). Despite this structure, the company operates as a private Limited Company. YPF 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. The company’s operating result before interest, taxes, depreciation, and amortization was positive. The company hired a consulting firm that determined the compensation for directors was below market, 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.
The General Assembly approved the payment of fees to 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. The Board of Directors will have more members in the coming year. Industry sources clarify that the reported average salary of directors may not accurately represent individual differences.
The President of the Board of Directors and CEO of YPF is Horacio Marin. Other board members include executives with backgrounds in energy and politics. The company’s board comprises individuals with diverse expertise. Various government officials and industry professionals make up the board of YPF.