In recent news, the Board of Directors of YPF, an oil company in Argentina, approved a salary increase close to 40% above inflation for its members during a meeting 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.
YPF generates around 80% of its revenue from selling fuel and has reserves that can be used in case of losses. Last year, the company reported a negative accounting result of $1.277 billion due to revaluations 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 income crisis than other sectors. Oil unions recently closed a parity agreement for year-on-year growth of 287%, while YPF’s board received approval for fees payment for fiscal year 2024 amounting over $10 billion. This represents a significant increase compared to previous years and is necessary to align with market conditions.
The Board of Directors now includes more members with varying compensation levels than last year. The CEO Horacio Marin leads the board along with other prominent figures in the energy sector. Despite controversies over director salaries, YPF continues operations and investment activities.
In response to concerns about director compensation levels being below market standards, YPF hired a consulting firm that recommended an increase in salaries for directors by around 40%. The proposal was accepted by over 98% of votes during an assembly held on Friday November 26th.
YFP’s operations are heavily reliant on oil sales and they have reserves that can be used if needed to mitigate losses. However last year’s financial statement showed negative results with account loss worth over $1 billion mostly due to revaluation process for saleable gas fields.
Despite controversies surrounding director salaries payouts within YFP’s boardroom discussions were kept private but it did not stop them from approving fees payment to their members amounting over $10 billion which is a significant increase compared to previous years it’s seen as necessary aligning with current market conditions.
The board now consists of more members than before each receiving varying levels of compensation