The Board of Directors of YPF has approved a salary increase close to 40% above inflation for its members during an Assembly meeting. This proposal was accepted by 98.6% of the votes, including those of the chief and vice chief of staff. Despite being composed of directors representing both state and private shareholders, YPF operates as a private Limited Company.
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. However, the company’s operating result before interest, taxes, depreciation, and amortization was positive. A consulting firm hired by YPF found that 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 than other sectors in the country, with oil unions recently closing a parity deal.
The General Assembly has approved the payment of fees to directors and members of the Supervisory Commission for fiscal year 2024. The increase in nominal terms compared to last year was significant, taking into account the average inflation expected by the IMF for Argentina when approving the salary increase. In addition, there will be more members on YPF’s board next year. Industry sources clarify that while reported average salaries may not accurately represent individual differences among directors at YPF.
Horacio Marin is President of the Board of Directors and CEO of YPF, with other board members bringing diverse expertise from both energy and politics backgrounds. Various government officials and industry professionals make up YPF’s board.
The proposed salary increase comes after concerns were raised about director compensation being below market rates following an analysis conducted by a consulting firm hired by YPF last year.
YPF obtained most of its income from fuel sales and uses its own reserves in case of losses. Last year’s negative accounting result came about due to revaluations made on its gas and oil fields which are set to be sold.
Despite having representatives from both state and private shareholders on its board, YPF operates as a private limited company.
The General Assembly also approved payment fees for directors and members of the Supervisory Commission for fiscal year 2024.
Overall, this news signifies an effort by YPF’s Board to ensure fair compensation for their services while taking into account inflationary pressures faced by all companies operating in Argentina today.
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