The Board of Directors of the oil company YPF recently approved a salary increase of nearly 40% above inflation for its members during an Assembly held on Friday, 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 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 fuel sales and can use its reserves in case of losses. In 2023, 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 was hired to determine that director salaries were below market standards, necessitating a salary increase.
The energy industry in Argentina has been less affected by income crises than other sectors due to stable oil prices. Oil unions recently closed a parity agreement that increased their compensation by 287% year-on-year. The General Assembly approved payment fees for directors and Supervisory Commission members for fiscal year 2024 totaling over $10.1 billion, significantly higher than last year’s amount but necessary to keep up with market rates.
The Board now has more members than last year with varying compensation levels. Horacio Marin leads the board as CEO while other prominent figures in the energy sector are also present.
Despite controversies surrounding director salaries, YPF continues with its operations and investment activities.
In summary, YPF’s Board approved a nearly 40% salary increase for directors during an Assembly held on Friday 26th while maintaining strong revenues from fuel sales despite reporting negative accounting results in 2023 due to revaluing its conventional gas and oil fields for sale. Despite operating as a private limited company (SA), YPF represents interests shared between the state (51%) and private shareholders (49%).