Sasol Integrated Report 2023 - Book - Page 77
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
ADMINISTRATION
GOVERNANCE AND REWARDS
REMUNERATION REPORT CONTINUED
REMUNERATION POLICY //
FIXED PAY
OVERVIEW OF
REMUNERATION ELEMENTS
BENEFITS AND
ALLOWANCES
SHORT-TERM
INCENTIVE (STI)
LONG-TERM
INCENTIVE (LTI) PLAN
We provide a comprehensive overview of remuneration elements, the strategic intent of each component and the decisions taken in FY23:
FIXED PAY
Policy
STRATEGIC INTENT
Base salary or total guaranteed package (TGP) depending on location.
Broad pay bands set with reference to location and sector median
benchmarks that reflect the complexity, scope and scale of our business to
ensure that we attract and retain the employees required to drive the Group’s
strategic objectives.
Attraction and retention of key employees
Internal equity and external competitiveness
Affordability
Recognition of competence and/or individual performance
The Committee approves the cost of annual increases after considering
market and economic data as well as affordability.
Mandates are provided for salary increase negotiations with recognised trade
unions and works councils.
Application
Employees in countries other than South Africa and employees in the
South African bargaining sectors are paid a base salary rather than a TGP.
Increases are applicable as follows:
In South Africa, the minimum wage we pay is compared with the living
wage for a family as provided by Trading Economics.
• Employees in collective bargaining structures receive across-the-board
increases effective 1 July or 1 October.
Salaries are paid monthly to all employees except for those in the
United States who receive bi-weekly payments.
• Outside South Africa, annual salary increases are also negotiated with
trade unions and/or works councils in the United States, Germany, Italy
and Mozambique.
Employees who are promoted are considered for salary adjustments
as justified.
• Employees outside the collective bargaining sectors: effective 1 October.
Outcomes FY23
An executive remuneration benchmarking exercise was conducted
and market adjustments, where appropriate, were implemented.
Employees in collective bargaining structures received increases of between 4%
and 8,1% across various countries, as well as adjustments to allowances.
In South Africa, the cost of increases, which include market adjustments,
for staff outside of collective bargaining units was 6,24% of the South
African salary bill. Of this, 5,2% was allocated towards annual inflation-linked
adjustments, and 1,04% was used to address internal and external
pay inequity.
International increase costs were in line with the organisation’s forecast
inflation numbers and applicable market progression practices.
Increases awarded were higher than in previous years, influenced by the
persistent high levels of global inflation.
A separate budget was approved to address internal equity matters.
SASOL INTEGRATED REPORT 2023
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