Sasol Integrated Report 2023 - Book - Page 87
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
REMUNERATION REPORT CONTINUED
IMPLEMENTATION REPORT CONTINUED
Long-term incentive (LTI) plan outcomes
FY23 LTI awards
The following table provides the outcomes against the corporate performance targets (CPTs) which were
linked to the FY21 LTI awards, which are due to vest in FY24 in respect of the performance period 1 July 2020 –
30 June 2023.
Stretch
Target3
Weighted
Measure
Weighting Threshold3
Target3 (100%) (200%)
Achievement
Achievement
For members of the GEC including Executive Directors, 65% of the LTI awards granted in September 2022
are subject to the achievement of the following CPTs in addition to time-based vesting criteria of between
three and five years. The balance of the award (35%) is subject to a five-year, time-based vesting criteria.
Climate
Change
ROIC2 Rest
of Sasol
2
ROIC USA
Relative TSR
measured
against the
new peer
group
Achievement
25%
35%
10%
30%
Deliver 150MW
of renewable
energy by
30 June 2023
Deliver 200MW
of renewable
energy by
30 June 2023
Deliver 300MW
of renewable
energy by
30 June 2023
The
measurement of
the renewable
energy target has
been deferred4
–
ROIC (excl AUC)
at SA WACC
of 13,5% per
annum
ROIC (excl AUC)
at SA WACC
of 13,5% + 1%
= 14,5% per
annum
ROIC (excl AUC)
at SA WACC
13,5% + 2%
= 15,5% per
annum
FY21 and FY23
were impacted
by impairments.
Sasol achieved
ROIC stretch
target for FY22
23,34%
The performance targets for the FY23 award are as follows:
KPI – Key
performance
indicator
Holistic focus
on ESG matters
ROIC (excl AUC) ROIC (excl AUC)
at US WACC of at US WACC 8%
8% per annum + 0,5% = 8,5%
per annum
ROIC (excl AUC)
at US WACC 8%
+ 1% = 9% per
annum
Below threshold,
averaging 1,5%
over three years
0%
Below the 50th 60th percentile
percentile of
of the index
the index
75th percentile
of the index
Above target
achievement at
67th percentile
against the peer
group
44%
Return on
Invested Capital
(ROIC)2
2
3
4
Target
(Rating = 100%)
Stretch
(Rating = 200%)
25% (equally
divided
between
Energy and
Chemicals
targets)
Achieve a sustainable
3,55% reduction
(equating to 2,3mtpa
CO2e) in scope 1 and
scope 2 emissions off
a 2017 baseline by end
FY25
Achieve a sustainable
4,18% reduction
(equating to 2,7mtpa
CO2e) in scope 1 and
scope 2 emissions off
a 2017 baseline by end
FY25
Achieve a sustainable
4,9% reduction
(equating to 3,2mtpa
CO2e) in scope 1 and
scope 2 emissions off
a 2017 baseline by end
FY25
Sasol SA 30%
ROIC (excl AUC) at
SA WACC of 13,5%
per annum
ROIC (excl AUC) at SA
WACC of 13,5% +1% =
14,5% per annum
ROIC (excl AUC) at SA
WACC of 13,5% +2% =
15,5% per annum
ROIC (excl AUC) at US
WACC of 8% per annum
ROIC (excl AUC) at US
WACC of 8% +0,5% =
8,5% per annum
ROIC (excl AUC) at US
WACC of 8% +1% = 9%
per annum
50th percentile of
the index1
60th percentile of
the index
75th percentile of
the index
Offshore
10%
Relative TSR vs
the peer group3
35%
Total
100%
0 – 200% range1 = 67,34%
1
1
Threshold
(Rating = 0%)1
Weighting
In respect of LTIs issued to members of the Group Executive Committee including the Executive Directors, 100% of the award was subject to
the achievement of CPTs. Of the vested portion, 50% will be released in FY24 and the balance in FY26 subject to continued employment.
ROIC was measured annually.
Straight line vesting is applied between threshold, target and stretch target.
The Committee has decided to postpone the assessment of performance against the renewable energy target until more clarity is available in respect
of Eskom's grid access.
2
3
Threshold = 50% vesting at median performance for rTSR; 0% for ROIC; 50% for ESG targets - straight line scoring to be applied between threshold,
target and stretch.
ROIC will be measured at the end of each FY. The extent to which the target is met, or not, will be assessed and the performance period will be
restarted on 1 July of the following year. Three different assessments to be done over the performance period.
TSR peer group as approved by the Sasol Remcom for FY22.
SASOL INTEGRATED REPORT 2023
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