Sasol Integrated Report 2024 - Book - Page 140
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
PART II: REMUNERATION COMMITTEE CHAIRMAN’S BACKGROUND STATEMENT continued
Thematic feedback
Committee’s responses
The use of restricted shares not accepted
by some
Sasol’s LTI plan has been designed as a mechanism
to attract and retain employees in senior
management and more senior levels across the
world, in addition to creating alignment with
shareholders and rewarding executives for driving
performance. Restricted shares used in
combination with performance shares is standard
practice in the US and increasingly common in
other countries where we compete for talent.
The cliff edge vesting period of five years for these
shares, is more stringent than the typical cliff
edge vesting period of three or annual vesting
over a four year period. At the time when we
introduced restricted shares, we reduced the
target LTI award for the CEO from 200% of base
salary/TGP to 150% and for the CFO from 150% of
base salary/GP to 125% to compensate for the
reduced risk associated with performance shares.
Therefore, the Committee believes that on
balance, the combination of restricted and
performance shares meets the objectives to drive
performance, align the interests of management
and shareholders, be competitive across the globe
and retain our key talent over a long period.
In general, we were pleased to hear that
shareholders appreciated our regular
engagements, detailed disclosures, balanced
scorecard approach in the assessment of
performance and the five year vesting period on
a substantial portion of our long-term incentives
combined with the implementation of the
post-termination vesting holding requirements.
The year under review
Prioritising our people
In FY24 the Committee gave its priority attention
to overall people initiatives, and to remuneration
practices to both ensure the safety and wellbeing
of Sasol’s people and to developing and retaining
the skills to deliver Future Sasol.
Among these was the simplification of
programmes focused on improving safe
behaviours and culture. We extended the
application of the penalty in the STI plan for
fatalities to all employees, rather than just the
Group leadership and employees in the business
in which a fatality occurred.
We acknowledge that the changes in leadership
and the executive structure announced in the
year – like with any transition at the top of
an organisation – had the potential to cause
uncertainty or excitement among employees.
This required careful oversight, as well as renewed
focus on ensuring an attractive employee value
proposition, to mitigate retention risks.
Amid global cost-of-living increases, with the
associated pressure on disposable income,
and high rates of unemployment in South Africa,
the Committee also concerned itself with the
support programmes in place at Sasol to aid our
employees from an emotional and financial
wellbeing perspective.
We continued to monitor internal pay ratios.
In addition to the analysis of vertical pay gaps,
the Committee also reviews horizontal pay gaps
on a race and gender segmented basis on data
in South Africa, the USA, Germany and Italy.
The analysis, consistent with prior years, shows
that there is no evidence of systemic pay
discrimination based on race or gender and that
where there are pay gaps, these are mainly
attributed to experience. Horizontal pay gaps
for our South African employees are disclosed
in this report.
The Group Executive Committee
In line with our new operating model, a number
of changes to the GEC were announced in the year.
For more detail refer to page 23.
With every appointment and departure, the
Committee deeply deliberates remuneration
packages ensuring consistency, fairness and
equity. Benchmark data is consulted and market
adjustments which could result in significant
increases to salaries, especially when executives
are promoted to more senior roles, were approved
by the Committee when considered appropriate.
Key Remuneration Outcomes
Fixed pay
In the year, global inflation trended lower, and
increases awarded to Sasol employees were
adjusted accordingly. For employees covered by
collective bargaining agreements, the Committee
approved increase budgets that were typically
higher than inflation and, in all cases, the
collective agreements ended within the approved
budgets. We value our relationships with our
labour partners and their role in promoting the
interests of their members, our employees.
SASOL INTEGRATED REPORT 2024
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