The Board of Directors of YPF recently approved a salary increase close to 40% above inflation for its members during the 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 derives 80% of its income from the sale of fuel and can use its reserves in case of losses. Last year, the company reported a negative accounting result of $1.277 billion, mainly due to the revaluation of its conventional gas and oil fields for sale. However, the adjusted EBITDA before interest, taxes, depreciation, and amortization was positive at $4.058 billion. The company hired a consulting firm to determine that the compensation paid to directors was below market standards, necessitating the salary increase.
The energy industry in Argentina has been less affected by the income crisis compared to other sectors. Oil unions recently closed a parity agreement with an increase in wages year-on-year that reached 287%. The General Assembly approved the payment of fees for directors and members of supervisory commissions for fiscal year 2024 amounting over $10.1 billion.
The Board now has additional members compared to last year with varying compensation levels. The CEO Horacio Marin leads the board along with other prominent figures in energy sector.
Despite controversies surrounding director salaries, YPF continues operations and investment activities as it navigates through economic uncertainty in Argentina’s energy sector.