Sasol Integrated Report 2023 - Book - Page 81
INTRODUCTION
ABOUT SASOL
CREATING VALUE
STRATEGIC OVERVIEW
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
REMUNERATION REPORT CONTINUED
OVERVIEW OF REMUNERATION ELEMENTS CONTINUED
Effective 1 July 2021, the Committee considered and approved a separate peer group to be used for the relative
total shareholder return (rTSR) measurement in our LTI award. Some larger competitors (not included for
benchmarking purposes) were also included in place of some smaller companies. No changes were made to
the peer group for FY23.
JSE primary listed companies
Chemicals companies
AECI
BASF
Continental Resources
Anglo American Platinum
Dow Chemicals
Devon Energy
AngloGold Ashanti
Eastman Chemicals Co
Hess Corporation
Glencore
Lanxess AG
Imperial Oil
MTN Group
Lyondell Basel
Origin Energy
Sibanye Stillwater
Solvay SA
Repsol
LONG-TERM INCENTIVE (LTI) PLAN
The LTI Plan gives participating employees the opportunity, subject to the vesting conditions, to receive
Sasol ordinary shares or ADRs. After the vesting period, which varies between three and five years,
participants may sell or retain the shares.
In jurisdictions where we do not offer an equity-settled award due to legislative restrictions, or where we
choose not to make an equity-settled award, eligible employees may participate in a cash-settled LTI plan
with the same conditions that are applicable to equity instruments, except that they are settled with cash.
Energy companies
The maximum number of shares to be made available for awards to eligible participants equated to
approximately 5% of the issued shares of the Group at the time.
Special retention awards and sign-on
or buy-out awards
The Sign-on Payment and Retention Policy may be
used in the recruitment and retention of candidates
in specialised or scarce skill positions. Cash retention
payments are linked to retention periods of at least
two years. Retention shares may be granted under
the LTI Plan.
Variable pay plans
SHORT-TERM INCENTIVE (STI) PLAN
The President and CEO’s and the Group CFO’s STI calculations are based on the Group STI Scorecard,
with a multiplier in respect of individual performance.
Executive service contracts
For all other Executive Directors and Prescribed Officers differentiated weightings are applied in respect
of Group and Business STI scorecard outcomes, as indicated:
Designation
Group scorecard
weighting %
Business scorecard
weighting %
100%
–
President and CEO and CFO
1
1
2
3
4
Business Prescribed Officers
60%
40%
Other Executive Directors and Prescribed Officers
in the Corporate Centre2
60%
40%
All other role categories in the Corporate Centre3
50%
50%
All other role categories Business4
20%
80%
• Members of the GEC have permanent employment
contracts with notice periods of three to six months.
• The contracts provide for salary and benefits as well
as participation in incentive plans based on Group,
Business and individual performance as approved by
the Board.
• EVPs who are members of the South African Sasol
Pension Fund are required to retire from the Group
and as Directors from the Board at the age of 60,
unless they are requested by the Board to extend
their term.
• Perquisites offered to the members of the GEC are
disclosed in the Implementation Report.
Mr Rademan’s STI is calculated on Mining’s performance only. He was appointed on a fixed-term contract specifically to lead the turnaround
of Sasol Mining.
The Business calculation for Corporate Centre Prescribed Officers and Executive Directors are done on a weighted average of the Energy,
Chemicals and Mining STI outcomes.
Applicable to employees in Corporate Centre.
Applicable to employees in Businesses.
THE FOLLOWING FORMULAE WAS APPROVED FOR SHORT-TERM INCENTIVES:
STI
Award
1
2
=
Annual Base
Salary or
Annual TGP
X
Role
Category
Target
STI %
X
Group
Performance
Factor
(0% – 150%)1
Weighting
+
Business
Performance
Factor
(0% – 150%)1
Weighting
X
Individual
Performance
Factor
(0% – 150%)2
Outperformance in respect of financial and non-financial targets must be achieved to provide funding for the score > 100%.
Unless otherwise agreed for specific countries, or within collective bargaining structures.
SASOL INTEGRATED REPORT 2023
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