Sasol Integrated Report 2022 - Book - Page 64
INTRODUCTION | ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
DELIVERING
GOVERNANCE AND REWARDS
ADMINISTRATION
REMUNERATION REPORT | CHAIRMAN’S LETTER
Shareholder feedback
he Committee’s key task is to ensure
T
that executive remuneration is aligned
with stakeholder value creation in the
context of the short- medium- and longterm strategy. On the back of a satisfactory
set of business results, we believe that
this alignment has been achieved.
At our Annual General Meeting (AGM) in November 2021, support for the Remuneration Policy
increased to 86,90% from 71,46% in 2020.
We were also pleased that there was an increase in shareholder support in respect of the
Implementation Report, with 86,11% of votes represented at the AGM in support of the non-binding
advisory resolution compared to 43,21% in 2020.
Sasol continued to engage with investors to understand their concerns and ensure that reasonable
requests which the Committee believes would improve the Remuneration Policy and the way it is
implemented are addressed as best as possible and in the best interests of the Company.
Although there was no requirement to meet with investors, we continued to do so and appreciate
the candid and constructive feedback.
The following table lists the three main concerns raised by shareholders during 2022 and Sasol’s response:
Mpho Nkeli
Chairman of Remuneration Committee
KEY MESSAGES
Reward outcomes align with Company performance
Bolstering Executive Leadership
Benchmarking of Executive and non-Executive Director Remuneration
I ncreased emphasis on environmental, social and governance (ESG) measures aligning
with Sasol’s long-term strategic priorities
We continue to provide various forms of support to employees, including access
to emotional wellbeing.
Dear stakeholders
In the first half of 2022, Sasol benefited from a
more favourable macroeconomic environment and
increased demand for our products.
The second half of 2022 presented new challenges,
including the devastating floods in KwaZulu-Natal
(KZN) and the impact of the Russia/Ukraine conflict.
Challenges at some of our South African operations
resulted in lower fuel and chemical production as
well as a reduced ability to export products due to
the extreme weather events which impacted the
KZN province of South Africa.
Sasol cares deeply for our people, planet and
communities. As such, and in addition to providing
support to our own employees impacted by this
tragedy, we rallied behind non-profit organisations
and community development agencies to provide
support to communities affected by the KZN floods.
Sasol also joined organisations and people from all
over the world in support of humanitarian relief
efforts in Ukraine.
Tragically, we continued to lose employees who
succumbed to complications related to the COVID-19
pandemic and were also deeply saddened by six
workplace fatalities in 2022. The Committee wishes
to express its condolences to all who have lost loved
ones in this period.
Through both financial and non-financial means,
including wellness programmes, Sasol supported
the families of employees who passed on in the year.
Shareholder concerns
Sasol’s responses
• Adjusted EBITDA measure
This measure will be removed for 2023.
• Peer group for relative Total
The peer group for purposes of determining rTSR was adjusted
to include larger comparator companies and was split from the
peer group used for executive and non-executive benchmarking
purposes where the inclusion of large comparator companies
is not considered appropriate.
• ROIC (LTI) measure should
Sasol is entering a phase where capital investments will again be
made ensuring ongoing growth of the business and capitalising on
new opportunities, especially through developing new low-carbon
value pools in Energy. As a result, Sasol is retaining this measure.
in the Long-Term Incentive
Plan is not considered to be
appropriate as it is subject to
too many uncontrollable factors
with discretion in the application
of adjustments.
Shareholder Return (rTSR)
(LTI) measure excludes larger
comparator companies.
be reconsidered given the low
level of capital spend on largescale projects.
The year under review
COVID-19 AND ITS IMPACTS
Sadly, by 30 June 2022, 94 Sasol employees had
succumbed to COVID-19. We mourn their loss and
extend our heartfelt condolences to their families,
friends and colleagues. Despite the easing of
COVID-19 regulations, Sasol continues to conduct
risk assessments and observe COVID-19 protocols.
We also continue to provide various forms of
support to employees, including access to emotional
wellbeing programmes. All employees are offered
membership of health insurance, retirement, death
SASOL INTEGRATED REPORT 2022
63
and disability plans as part of their employment
contracts. Membership of funeral plans is optional.
In the latter part of 2022 those office-based
employees who had previously worked from home
returned to the workplace on hybrid workplace
arrangements. Employees exposed to COVID-19
or who fell ill from the virus were granted paid leave
for the period of absence. No employees had to claim
from the South African government’s COVID-19 relief
fund to replace salaries lost as a result of suspended
operations, nor did they have to take unpaid leave.
