Mexico Pemex CEO criticizes Repsol chairman's pay

Wed Nov 20, 2013 6:46pm EST
 
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MEXICO CITY (Reuters) - The chief executive of Mexico's state-run oil monopoly Pemex PEMX.UL on Wednesday criticized the compensation paid to the chairman of Spain's Repsol REP.MC as excessive, amid a tussle over the handling of a dispute involving Argentina.

Emilio Lozoya, CEO of Pemex - which has a 9.4 percent stake in Repsol - also told Mexico's Congress that the oil giant was not looking to tie up with Mexican billionaire tycoon Carlos Slim in a bid to oust Repsol Chairman Antonio Brufau.

Argentina seized Repsol's majority stake in Buenos Aires-based energy firm YPF YPFD.BA last year, arguing it had not done enough to invest in output.

Since then, Repsol has vowed to sue any firm that partners with YPF to cover losses stemming from the expropriation, which it says merits a $10.5 billion reimbursement. Pemex has disagreed with Repsol's strategy.

The Mexican oil monopoly has had talks about the prospect of exploiting the vast Vaca Muerta shale field owned by YPF as part of its bid to work on projects outside Mexico, stoking differences between Pemex and Repsol.

Pemex has in the past threatened to sell out of Repsol due to differences with Brufau.

"Our criticism has been about the compensation .. of the administration," Lozoya told a Congressional hearing.

Brufau was paid more than 7 million euros ($9.42 million) in 2012, making him one of Spain's highest-paid executives, including retirement payments of 2.7 million euros which he has said he will renounce in the future.

Lozoya said a 22 million euro severance package for Brufau should he leave Repsol was another example of excessive compensation given the company's recent returns.   Continued...

 
Antonio Brufau, chairman of Spanish oil company Repsol, speaks during a ceremony to present company's strategic plan in Madrid May 29, 2012. REUTERS/Sergio Perez