Sasol Integrated Report 2022 - Book - Page 68
INTRODUCTION | ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
DELIVERING
GOVERNANCE AND REWARDS
ADMINISTRATION
REMUNERATION REPORT (CONTINUED)
Overview of remuneration elements, strategic intent of each component and decisions taken in 2022 (continued)
STI –
Policy and strategic intent
STI –
application
Outcomes
2022
LTI plan –
Policy and strategic intent
LTI plan –
application
For the majority of our permanent
employees across the world, we
apply a single STI structure.
Every quarter, the Committee
reviews year-to-date performance
against the Group STI scorecard
to ensure ongoing focus and
commitment.
The Committee approved a Group
STI scorecard focused on achieving
the Future Sasol priorities.
In addition to the Group factor,
BU scorecards were approved
as applicable. 100% of the STI
weighting for the President and
CEO was based on the Group
scorecard. For other members
of the GEC, the split was 60%
Group and 40% BU factor. For GEC
members who do not head up a
BU, the average score in respect of
the Chemicals and Energy BU’s STI
outcomes was used.
Equity- or cash-settled awards
are granted annually, on
appointment or upon promotion
to an eligible level, where the
underlying value is tied to the
market value of a Sasol ordinary
share (or American Depository
Receipts (ADR) for international
participants), subject to vesting
conditions.
LTIs form an important part of
our reward mix and target awards
are reviewed annually to ensure
ongoing market competitiveness.
Annual awards are made with
reference to a percentage of
base salary or TGP, which is level
dependent, the eligible employee’s
performance over the preceding
year and the organisation’s
requirement for skills retention.
Minimum shareholding
requirements are in place for
Executive Directors and Prescribed
Officers.
The exception is the NonManagerial mining employees who
earn a production bonus which is
processed bi-weekly, subject to
safe production volumes against
mining targets.
Target incentives align with the
market median.
The STI structure consists of Group
and BU STI scorecards. Individual
performance is a multiplier in the
range of 0% – 150% applied to
the final STI score. All targets are
approved at the start of the new
financial year.
The Committee can exercise
discretion to vary incentive
outcomes as deemed appropriate
and based on affordability.
Approved pay-outs are processed
with the September salary.
Individual performance is assessed
informally on a regular basis and
formally at least twice in the
financial year.
To ensure appropriate line of sight,
people metrics are included in BU
and individual scorecards.
The Committee approves the final
Group and BU STI outcomes in the
August meeting after the end of
the financial year.
All exceptions are disclosed in
this report.
In line with our commitment to
actively reduce carbon emissions,
relevant incentive targets have
been included in the Group and
BU scorecards to ensure that
milestones achieved on the journey
are appropriately incentivised.
In addition to people, leadership,
safety and sustainability metrics,
as appropriate, the following
metrics are also included in the
individual performance scorecards:
• safe transportation of
hazardous chemicals;
• occupational health measures;
and
• leaks or spills of hazardous
materials.
These metrics balance safety,
environmental sustainability,
financial and operational
performance criteria.
Each fatality reduces the final
Group incentive score by three
percentage points for the GEC
and lower levels in the BU where
the fatality occurred.
IR
S
TI performance outcomes for 2022
are set out on page 70.
Vesting of awards is subject to
the achievement of Corporate
Performance Targets (CPTs) and/or
service criteria.
A split vesting period of three to
five years applies to performance
shares awarded to Top
Management.
For members of the GEC, 35%
of the annual award is granted in
the form of restricted shares with
a cliff vesting period of five years.
The introduction of restricted
shares supports minimum
shareholding requirements as
well as improved alignment with
shareholders’ interests over the
long term.
Strategic intent:
• Attraction and retention of
senior employees and scarce
and critical skills.
• Alignment with shareholders’
long- term interests with
reference to the Sasol share
price and the underlying
performance metrics.
SASOL INTEGRATED REPORT 2022
67
Participants may sell or retain
the vested shares once vesting
conditions and minimum
shareholding requirements have
been met.
The Committee reviews the LTI
targets every year to ensure
continued alignment with key
priorities.
Outcomes 2022
100% of the LTIs awarded to
members of the GEC in 2020 are
subject to the achievement of
performance metrics over the
period 1 July 2019 – 30 June 2022.
The overall performance of the
2020 LTI awards to the GEC was
54,31%, 50% of the vested award,
granted in 2020, will vest on the
third anniversary and the balance
on the fifth anniversary, subject to
continued employment.
Participants who leave the Group
for reasons other than retirement,
retrenchment, death, disability or
ill-health, or for any other reason
approved by the Committee, will
forfeit unvested awards.
The introduction of restricted
shares in FY21 also supports
the requirement for minimum
shareholding requirements
which were introduced for all
Prescribed Officers from 2021.
This requirement was previously
only in place for Executive
Directors.
Assuming the 2022 LTI plan
is approved, it will apply to
the awards to be made in
September 2022.
AFS
For detailed metrics. refer to our
Annual Financial Statements available
on our website, www.sasol.com
