Sasol Integrated Report 2023 - Book - Page 74
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
REMUNERATION REPORT CONTINUED
REMUNERATION COMMITTEE CHAIRMAN’S STATEMENT
The Committee is tasked primarily with ensuring
that management delivers on the performance
objectives set by the Board delivering value for all
stakeholders and is consequently appropriately
rewarded for such performance within the ambit of
the Remuneration Policy. We are confident that the
reward outcomes approved by the Committee for FY23,
reflects the performance outcomes.
Mpho Nkeli // Chairman of Remuneration Committee
Dear stakeholders
Engaging with shareholders
An overview
At our AGM in December 2022, support for the policy
increased to 92,92% from 86,90% in FY21 and 71,46%
in FY20. There was also an increase in shareholder
support for the Implementation Report, with 94,89%
of votes in support of the non-binding advisory
resolution, compared to 86,11% in FY21 and a low
of 43,21% in FY20.
Reward outcomes are assessed in consideration
of business performance in the context of macroeconomic dynamics and factors outside and inside
of management’s control. The Committee takes its
responsibility to ensure that management is fairly
and appropriately rewarded very seriously, balancing
this with the need to ensure that there is shareholder
value creation over the same period.
The performance outcomes on the Group STI plan,
aligned with the Group’s performance over the
period. The Committee was again very concerned
with the plan outcomes being below target.
Performance against safety, climate change, net
working capital and the capital expenditure targets
were satisfactory, but energy efficiency, sales
volumes, cash fixed costs and free cash flow
generation over turnover results were below target.
Energy efficiency directly relates to the performance
of our operations. The Committee will in FY24 further
scrutinise the setting of targets and specifically
whether these are too ambitious in the context of
our daily realities.
The Committee was pleased that performance
improved against the LTI targets although the
external factors which hamper our efforts to
implement renewable energy projects remain
concerning.
KEY MESSAGES
Reward outcomes aligned with Company performance.
Reward acts as an important anchor in the comprehensive EmpVP and
people promise.
Pay gaps are reviewed and addressed as appropriate.
Executive and non-Executive remuneration benchmarked against a diverse group
of peer companies reflecting the business model of Sasol.
Implemented the revised long-term incentive plan (LTIP) rules as approved
by shareholders at the 2022 AGM.
Executive Directors and Prescribed Officers progress positively to meeting
the minimum shareholding requirements.
SASOL INTEGRATED REPORT 2023
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The consistent improvement in the level of
support received over the past two years for our
policy and the way it is implemented is encouraging;
it shows that most shareholders believe that our
approach to remuneration and the interests of our
shareholders are now better aligned.
Through targeted engagements, Sasol continued
to engage with investors, although not required,
to discuss the policy, hear any concerns, and explain
the rationale behind any policy decisions. In the year
we engaged with shareholders representing
approximately 44% of Sasol shares. We greatly
appreciate this feedback which is duly considered by
management and the Committee and plays an active
role in the shaping of our decisions.
