Sasol Integrated Report 2023 - Book - Page 79
INTRODUCTION
ABOUT SASOL
CREATING VALUE
STRATEGIC OVERVIEW
PERFORMANCE
GOVERNANCE AND REWARDS
REMUNERATION REPORT CONTINUED
OVERVIEW OF REMUNERATION ELEMENTS CONTINUED
LONG-TERM INCENTIVE (LTI) PLAN
Policy
STRATEGIC
INTENT
Equity- or cash-settled awards are granted annually, on appointment or upon promotion to an
eligible role category, where the underlying value is tied to the market value of a Sasol ordinary
share or American Depository Receipt (ADR) for international participants, subject to vesting
conditions.
Attraction and retention
of senior employees and
scarce and critical skills
Annual awards are made with reference to a percentage of base salary or TGP, which is role
category dependent; the eligible employee’s performance over the preceding year; and the
organisation’s requirement for skills retention.
Alignment with
shareholders’ long-term
interests with reference
to the Sasol share price
and the underlying
performance metrics
Vesting of awards is subject to the achievement of CPTs and/or service criteria.
A split vesting period of three to five years applies to performance shares awarded to members
of the GEC and Senior Vice Presidents.
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 use of restricted shares supports the achievement
of MSR as well as improved alignment with shareholders’ interests over the long term.
For FY24 this percentage will reduce to 30% of the award.
Post-cessation shareholding requirements were introduced in FY23 for members of the GEC.
Application
LTIs form an important part of our reward mix and target awards
are reviewed annually to ensure ongoing market competitiveness.
The MSRs are extended to 18 months post-service termination
date for Executive Directors and Prescribed Officers.
Participants may sell or retain the vested shares once vesting
conditions and MSR have been met.
The Committee reviews the LTI targets every year to ensure
continued alignment with strategic objectives.
MSRs are in place for Executive Directors and Prescribed Officers.
Outcomes FY23
The performance shares awarded to members of the GEC in FY21,
will vest in FY24, subject to the achievement of performance and
time vesting conditions. The performance period was set from
1 July 2020 – 30 June 2023. Subject to the meeting of these targets,
50% of the performance shares will vest in FY24, and the balance
in FY26. Restricted shares awarded in FY20 will vest, subject to
time vesting conditions, in FY25.
The vesting percentage for the performance shares was approved
at 67,34%, subject to a further review of the renewable energy
targets later in FY24.
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.
IR
For more detail refer to the FY23 metrics set out on page 86
Members of the GEC have made good progress towards meeting the
requirements set under the minimum shareholding requirement
policy. GEC members have only sold vested shares to settle tax
liabilities in respect of the vesting of the award, or once the MSR was
met. IR
For more detail refer to the MSR disclosed on page 88 and 90
SASOL INTEGRATED REPORT 2023
78
ADMINISTRATION
