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. The directors of YPF represent the interests of shareholders, including the State (51%) and private shareholders (49%). Despite this structure, the company operates as a private Limited Company. YPF obtains most of its income from the sale of fuel and uses its own reserves in case of losses.
YPF’s energy industry in Argentina has been less affected by income crisis, with oil unions recently closing a parity deal. 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. The company hired a consulting firm that determined that director compensation was below market level leading to an approved salary increase.
The General Assembly approved the payment of fees to directors and members of the Supervisory Commission for the fiscal year 2024. The increase in nominal terms compared to the previous year was significant. The average inflation expected by the IMF for Argentina was taken into account when approving the salary increase. YPF is set to have more board members in the coming year, with individuals with diverse expertise making up its board membership which comprises various government officials and industry professionals including Horacio Marin as President and CEO who also serves as head of state-owned Petroleum Corporation Yacimientos Petrolíferos Fiscales SAD (YPF).
