In a historic move, the Board of Directors of oil company YPF recently approved a salary increase close to 40% above inflation for its members during an 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. However, YPF’s ability to derive 80% of its income from the sale of fuel and use its reserves in case of losses has allowed it to weather tough economic times. 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 energy industry in Argentina has been less affected by the income crisis than other sectors due to stable oil prices and government policies aimed at supporting investment in upstream activities. Oil unions recently closed a parity agreement with an impressive year-on-year increase in wages and benefits for their members. The General Assembly also approved the payment of fees for YPF’s directors and members of its Supervisory Commission for fiscal year 2024 amounting to over $10.1 billion – an increase compared to last year’s payment necessary to align with market conditions.
With new members joining its board this year each with varying compensation levels, YPF continues operations while investing heavily in exploration activities under CEO Horacio Marin’s leadership – making it one of Argentina’s most dynamic energy companies today.
However, despite controversies surrounding director salaries – particularly given that they are much higher than average salaries across many sectors – YPF has maintained strong financial performance and continued operations throughout challenging times for many industries worldwide.
