Sasol Integrated Report 2024 - Book - Page 138
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
PART I: REMUNERATION AT A GLANCE continued
REMUNERATION POLICY SUMMARY
The following tables provide summarised information pertaining to the different pay components of our Remuneration Policy:
DESIGN PRINCIPLES
Fixed pay
and benefits
Short-term
incentives1
Long-term
incentives1
MINIMUM SHAREHOLDING REQUIREMENT (MSR) % OF ANNUAL PENSIONABLE
REMUNERATION AT TIME OF APPOINTMENT
•
•
•
•
•
Attraction and retention of employees
Internal equity and external competitiveness
Recognition of experience, competence and performance
Benchmarked to location market median
Benefits include participation in retirement, risk insurance and health insurance plans.
These enhance our employee value proposition and support our intent of being a
responsible employer
•
•
•
•
Promote value creation including safe and sustainable performance
Alignment with Group and Business financial and non-financial priorities
Personal performance influences final outcome
Additional penalty for fatalities across the Group
•
•
•
•
•
President and CEO: 300%
Group Chief Financial Officer: 200%
Other Executive Directors and Prescribed Officers: 100%
Vested LTIs to be retained (after settlement of taxes), and not sold, until the MSR is met
18-month post-cessation shareholding requirements are in place
REMUNERATION OUTCOMES
FY24
The following table provides a snapshot of the outcomes of pay decisions which were
taken by the Committee:
•
•
•
•
Attraction and retention of senior employees and scarce and critical skills
Alignment with shareholders’ long-term value creation
Competitive total reward package
Three-to-five-year vesting periods supporting retention efforts and longer-term
decision-making
• Minimum shareholding and post-cessation shareholding requirements
for Executive Directors and Prescribed Officers promoting long-term decision making
PAY OUTCOMES
Fixed pay
Employees not included in collective bargaining units
• Annual salary increases granted were typically aligned with inflation (October 2023)
SA: 6%; US: 3,6%, Germany: 4%
Employees covered by collective bargaining/co-determination agreements
• Increases in most jurisdictions are determined under multi-year agreements
which either come to an end in FY24 or in FY25
SA: average 6,5%; US: 2,75%, Germany: 3,25% + €1 500; implementation dates vary
according to agreements
Short-term
incentives1
• STI calculated in terms of TGP/Base salary x target% x Group STI% x IPF%. The following
percentage reflect the Group STI%:
• GEC 38.81%%
• Rest of participants between 42.81% and 48.81% depending on role category and
entity in which employed
Long-term
incentives1
• LTIs granted in FY22, subject to corporate performance targets (CPTs) will vest for the
GEC at 83.64% in FY25 calculated over the performance period 1 July 2021 – 30 June 2024
ELIGIBILITY
Fixed pay
• All permanent and non-permanent employees
Short-term
incentives1
• All permanent employees excluding Mining non-managerial underground employees
participating in a production bonus plan
Long-term
incentives1
• Executive and senior management, scarce and critical skills meeting eligibility criteria
FREQUENCY OF PAYMENT/SETTLEMENT
Fixed pay
• Monthly/bi-weekly (United States only)
• Annual increase effective 1 July or 1 October
Short-term
incentives1
• Annually in September if approved for payment
Long-term
incentives1
• GEC LTI awards:
– performance shares (70% of total award)
– 50% after three years
– 50% after an additional two years
– restricted shares (30% of total award)
– 100% after five years
Dividend equivalents in LTIs are awarded based on the vesting percentage at the
vesting date(s).
For other participants, the vesting periods vary between three and five years.
1
FY24
Malus and Clawback Policy and Executive Compensation Recovery Policy apply to all variable pay awards.
SASOL INTEGRATED REPORT 2024
136
