Board of Directors of YPF Approve Historic Salary Increase Amidst Inflation and Industry Upheaval

The Board of Directors of the oil company 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.

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.

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, despite this setback, the company’s operating result before interest, taxes, depreciation, and amortization was positive. The energy industry in Argentina has been less affected by income crisis, with oil unions recently closing a parity deal.

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. In addition to this, industry sources clarify that reported average salaries may not accurately represent individual differences within board members with diverse backgrounds in energy and politics.

Horacio Marin is currently President of YPF’s Board of Directors and CEO. Other board members include individuals with diverse expertise who bring their unique perspectives to decision-making processes at YPF.

In summary, YPF’s Board of Directors approved a salary increase close to 40% above inflation during an Assembly meeting while representing shareholders’ interests despite operating as a private Limited Company with significant revenue from fuel sales and reserves held in reserve for losses.