Sasol Integrated Report 2023 - Book - Page 76
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
REMUNERATION REPORT CONTINUED
REMUNERATION COMMITTEE CHAIRMAN’S STATEMENT CONTINUED
Social and risk considerations
Conscious of widening inequality across the world,
we continuously monitor internal pay gaps –
comparing the median Total Target Remuneration
(TTR) of the highest 10% of Sasol earners with that of
the lowest 10% – and approved interim adjustments
in April 2023 to address pay gaps where identified.
Line manager and employee training material on
understanding how salaries are determined, and how
salaries can be interpreted within pay bands, have
been developed to ensure that educated discussions
on pay can be held ahead of the pay gap information
being reported publicly. We have also added the
proposed pay gap methodology stated in the draft
Companies Amendment Bill, 2023 to our existing
assessments.
refer to
The Group top risk theme of ‘People’ IR
page 34, includes key risks relating to the retention of
critical skills, emigration, labour instability due to
socio-economic factors specifically in South Africa,
and employee wellbeing with a specific emphasis on
an increase in the number of mental health cases
reported. Mitigating plans are in place and these risks
are monitored on a continuous basis. One of the
mitigating plans, is the introduction of a progressive
pay and career model for our engineers, an enhanced
employee wellbeing programme focusing on mental,
financial and physical health and further
enhancements to the EmpVP.
The historically low levels of unemployment in our
northern hemisphere locations sometimes lead to
difficulty in immediately finding suitable candidates
to place in vacancies, as well as longer lead times.
This has led to a decision to increase the notice
period for our Leadership and Group Leadership
categories to three months where the legislative
framework permits.
On 1 July 2023, we were the first South African
headquartered company that introduced a global
cloud-based people management platform to
enhance the delivery of our human resources
services, enabling the business to make better
data-driven decisions and improve the overall
employee experience in digital HR solutions.
Mindful of employee feedback from our Heartbeat survey in
2022, in the year ahead we will remain focused on delivering
on our People Promise.
The Group Executive Committee (GEC)
The initial 16 month contract period for Mr CF Rademan
as EVP: Sasol Mining was extended to 31 October
2023 to allow sufficient time for handover to his
successor and to use his experience over
many decades to help stabilise the Mining business.
Mr Rademan will continue to support Mining as a
consultant on an ad hoc basis until June 2024.
Mr HC Brand retired effective 30 June 2023 and will
continue to support the Sasol/Topsoe Joint Venture
which is still subject to approval by the relevant
authorities, as a consultant on an ad hoc basis until
June 2024.
Independent advisors
Mr David Tuch, Managing Director at Alvarez &
Marsal Taxand UK LLP (A&M), continued to act as an
Independent External Advisor to the Committee in
FY23. A&M provided information on global reward
trends as well as market insights into discussions
on executive reward matters. It did not provide
any other services to Sasol and the Committee was
satisfied with A&M’s independence.
Looking forward FY23/FY24
Mindful of employee feedback from our Heartbeat
survey in 2022, in the year ahead we will remain
focused on delivering on our People Promise. We will
ensure that our key performance indicators (KPIs)
are aligned to our Group top priorities, strategic
objectives and address our material matters.
We will continue to embed our Values, culture,
enhance our EmpVP and promote diversity, equity
and inclusion in the workplace to ensure that we
attract and retain the skills we need to deliver on our
strategic objectives. Additionally, we will focus
delivery on our targets by prioritising shareholder
returns as we restore the foundation business and
reset. Safety will continue to be positioned as the
foundation across which all elements of the
priorities are to be delivered.
The Committee continually strives to simplify reward
practices in order to enhance the effectiveness
thereof in our organisation.
In closing
The improved voting outcomes at the 2022 AGM
regarding remuneration at Sasol indicated that
a substantial majority of our shareholders are
satisfied with the work of the Committee. We do
not take this endorsement for granted and remain
committed to ensuring that the policy and the
implementation thereof is fair and responsible;
supports the delivery of the Group’s strategy;
addresses material matters; and creates and
preserves value for our stakeholders.
The Committee is satisfied that the Policy meets
the agreed objectives. It is also satisfied that the
remuneration outcomes for FY23 reflect alignment
between the ‘pay for performance’ requirements
of both Sasol and our shareholders.
On behalf of the Committee, I would like to express
appreciation to all Sasol’s people for their dedication
to create value under often trying conditions. I thank
shareholders for their continued engagement and look
forward to their endorsement of the advisory votes
on our Remuneration Policy and Implementation
Report at the 2023 AGM. I extend my thanks to the
Committee members for their wise counsel in FY23.
The Committee is grateful to management, and
specifically the Reward team for their assistance.
Mpho Nkeli
Chairman of Remuneration Committee
25 August 2023
SASOL INTEGRATED REPORT 2023
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