The Board of Directors of YPF recently approved a salary increase of around 40% above inflation for its members during an Assembly held on Friday the 26th. This proposal was accepted by 98.6% of the votes, including those of the chief and vice chief of staff, Nicolas Posse and Jose Rolandi, respectively. The directors of YPF represent the interests of the shareholders, which include the State (51%) and private shareholders (49%). Despite this share structure, the company operates as a private limited company (SA) without financial contributions from the national State.
YPF generates 80% of its revenue from selling fuel and can use its reserves in case of losses. Last year, the company reported a negative accounting result of $1.277 billion due to revaluing its conventional gas and oil fields for sale. However, the adjusted EBITDA before interest, taxes, depreciation, and amortization was positive at $4.058 billion. A consulting firm determined that director compensation was below market standards and recommended a salary increase.
The energy sector in Argentina has been less affected by the income crisis than other industries. Oil unions recently closed an agreement that increased their fees by 287% year-on-year. The General Assembly approved payment for directors’ fees and members of the Supervisory Commission for fiscal year 2024 amounting to over $10.1 billion. This is a significant increase compared to previous years.
The Board of Directors now has more members with varying compensation levels than last year.
Horacio Marin leads the board as CEO of YPF, joined by other prominent figures in the energy sector.
Despite controversies over director salaries, YPF continues its operations and investment activities.