Sasol Integrated Report 2023 - Book - Page 78
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
REMUNERATION REPORT CONTINUED
OVERVIEW OF REMUNERATION ELEMENTS CONTINUED
BENEFITS AND ALLOWANCES
SHORT-TERM INCENTIVE (STI) PLAN
Policy
STRATEGIC
INTENT
Compliance with
legislation or codetermination agreements
Strengthening of the
EmpVP
To protect cost of living for
employees on expatriate
assignments
Benefits include, but are not limited to,
membership of a retirement plan,
healthcare and risk cover which in some
cases are partly subsidised by the
Company.
Allowances are paid in terms of statutory
compliance or as are applicable in a sector/
jurisdiction.
Several special allowances including
housing, cost of living, home-leave and
child education are included in the Group’s
Expatriate Policy.
Policy
STRATEGIC
INTENT
For most of our permanent employees across the world, we apply a single STI structure.
Enable delivery
of performance
targets in a safe and
sustainable manner
Promote value
creation for all
stakeholders
against predetermined targets
in the short term
The exception is the non-managerial mining employees who earn a production bonus
which is processed bi-weekly, subject to safe production volumes against mining targets.
Target incentive levels align with the market median.
The STI structure consists of a weighting towards Group and Business STI scorecards; the
weighting depends on the employee’s role category. 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. A safety penalty of 3,0 percentage points per fatality is
deducted from the final STI score.
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.
Application
Benefits are offered for retirement, for reasons of sickness, disability or death.
Beneficiaries of employees who pass away while in service receive an additional
insurance payout. The quantum depends on which retirement plan they belonged to.
Allowances are linked to roles within specific locations and are paid together
with salaries.
Expatriate benefits and allowances are offered in terms of country and assignment
policies.
Employee wellbeing is the core of labour stability. Sasol continues to roll out
emotional, financial management, physical and safety culture interventions as
both preventative and reactive measures to matters identified in the workplace.
The employee assistance programme (EAP) is offered in most countries where we
have large operations.
Outcomes FY23
An increase in the funeral benefit value for South African employees was approved
in FY23.
Sasol uses different options to provide healthcare to employees and their families
by means of medical insurance and/or public health plans, as well as additional
insurance in different countries as appropriate.
The Committee confirmed that in all countries where employees participate in
private retirement funds, the governance of these funds meets fiduciary
requirements, and all defined benefit fund liabilities are appropriately detailed.
For more detail refer to our Annual Financial Statements – Statement of Financial Position,
available on our website, www.sasol.com
WWW
AFS
Application
Every quarter, the Committee reviews year-to-date
performance against the Group and Business STI scorecards
to ensure ongoing focus and commitment on key priorities.
Individual performance is assessed informally on a regular
basis and formally at least twice in the financial year.
The Committee approves the final Group and Business STI
outcomes in the August meeting after the end of the
financial year, also considering affordability after all factors
were taken into account.
No discretion was applied by the Committee in FY23.
To ensure appropriate line of sight, people metrics are
included in Business and individual scorecards.
Outcomes FY23
The Committee approved a Group STI scorecard focused on
achieving the Future Sasol priorities. In addition to the
Group factor, Business scorecards were approved as
applicable. 100% of the STI weighting for both the
President and CEO and the Group CFO was based on the
Group scorecard. For other members of the GEC, the split
was 60% Group and 40% Business factor. For GEC members
who do not head up a Business, the weighted average score
in respect of the Chemicals (40%), Mining (20%) and Energy
(40%) Business’ STI outcomes was used.
In line with our commitment to actively reduce greenhouse
gas emissions (GHG), relevant incentive targets have been
included in the Group, Business and individual scorecards
to ensure that milestones achieved on the climate change
journey receive the appropriate focus.
In addition to people, leadership, safety and sustainability
metrics, the following metrics are 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, other people KPIs,
environmental sustainability, and financial and operational
performance criteria.
The Group STI score was reduced by 6% for members of
the GEC and 3% for leadership roles in Mining and Secunda
Operations.
The individual performance factor (in a range of 0% –
150%), is a multiplier in the final calculation.
IR
SASOL INTEGRATED REPORT 2023
77
STI performance outcomes for FY23 are set out on page 84
