During an Assembly meeting, the Board of Directors of YPF approved a salary increase close to 40% above inflation for its members. The proposal was accepted by 98.6% of the votes, including those of the chief and vice chief of staff. YPF’s directors represent the interests of shareholders, including the State (51%) and private shareholders (49%), despite being part of a private Limited Company.
The company’s operations are primarily driven by the sale of fuel and its own reserves in case of losses. 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 determined that director compensation was below market level, leading to the approved salary increase. The energy industry in Argentina has been less affected by income crises, with oil unions recently closing a parity deal.
In addition to approving salaries for directors and members of the Supervisory Commission for fiscal year 2024, the General Assembly also paid fees to members. The increase in nominal terms compared to previous years was significant and took into account average inflation expected by IMF for Argentina when approving salaries increases. While reports suggest that there may be individual differences within YPF’s board members’ salaries that do not accurately reflect their backgrounds or expertise as executives with diverse backgrounds make up YPF’s board comprising government officials and industry professionals including Horacio Marin as President of Board of Directors and CEO of YPF
