The oil company YPF recently approved a salary increase close to 40% above inflation for its board 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. Despite being 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.
In the past year, YPF reported a negative accounting result of $1.277 billion 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. A consulting firm determined 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 than other sectors in Latin America. Oil unions recently closed a parity agreement of 287% year-on-year. The General Assembly approved the payment of fees for directors and members of the Supervisory Commission for fiscal year 2024 amounting to over $10 billion. This represents a significant increase compared to last year and is necessary to align with market conditions.
The Board of Directors now includes additional members with varying compensation levels, including CEO Horacio Marin and other prominent figures in the energy sector. Despite controversies over director salaries, YPF continues its operations and investment activities.
In conclusion, YPF’s recent salary increase was aimed at bringing its compensation levels up to market standards after being deemed below par for their services by a consulting firm hired by the company’s shareholders. Despite controversies surrounding their salaries, YPF’s board continues to work towards ensuring that shareholders receive maximum value from their investments in one of Argentina’s largest oil companies
