Sasol Integrated Report 2024 - Book - Page 142
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
PART III: SECTION A – EXECUTIVE REMUNERATION POLICY (INCLUDING NEDs)
Overview of remuneration elements
Here we provide a comprehensive report on Remuneration Policy elements applicable to our Executive Directors and Prescribed Officers:
REMUNERATION – SECTION A
EXECUTIVE REMUNERATION
NEDs
Fixed Pay:
Policy
Base salary or total guaranteed package (TGP) depending on location. TGP
includes the base salary and the cost of all employer contributions to
approved benefit funds.
Broad pay bands are set with reference to location and sector median
benchmarks that reflect the complexity, scope and scale of our business to
ensure that we attract and retain the employees required to drive the
Group’s strategic objectives.
The Committee approves the cost of annual increases after considering
market and economic data as well as affordability. Individual increases are
approved by the Committee or the Board considering the approved
benchmarks, tenure and performance.
Application
In jurisdictions outside of South Africa, Executive Directors and Prescribed
Officers receive a base salary; in South Africa, they receive a TGP.
Salaries are paid monthly to all employees except for those in the United
States who receive bi-weekly payments. German employees receive a
thirteenth cheque.
Employees who are promoted are considered for salary adjustments
as justified. Market adjustments are considered for purposes of internal
equity and external competitiveness.
Annual salary increases are applicable effective 1 October.
NEDs are paid a fixed annual fee in respect of
their Board membership and supplementary fees for
Committee membership or Chairmanship.
The annual fee is divided by four and a quarterly fee is
paid at the end of every Board cycle regardless of the
number of meetings held in that quarter.
For NEDs not appointed for the full quarter, a pro rata
calculation is made.
VAT is excluded from approved fees and paid on top of
as and when required.
Benefits and
Allowances
Benefits include, but are not limited to, membership of a retirement plan,
healthcare, and risk cover which in some cases are partly subsidised by the
Company.
• Informed by market practice, Executives can structure a car allowance
from their TGP, receive a car allowance or a dedicated Company-owned
vehicle may be provided.
• A Company pool vehicle and chauffeur service is available.
• Sasol-owned/leased accommodation may be utilised for business and
private use.
• Security risk assessments and provisions are available.
• Additional benefits and allowances are offered to employees on expatriate
assignments.
Benefits are offered for retirement, for reasons of sickness, disability,
or death.
Beneficiaries of employees who pass away while in service receive an
additional insurance payout. The quantum depends on the retirement plan
selected.
Car allowances and Company cars are taxed in accordance with the relevant
jurisdiction requirements.
Private use of benefits are taxed accordingly.
NEDs are eligible to receive a reimbursement of actual
travel expenses incurred per Board cycle.
Policy
We apply a single STI structure based on a Group scorecard. The detailed
targets in the Group scorecard are approved at the August Committee meeting
for the new financial year, ensuring alignment with the strategic priorities.
The Committee can exercise discretion to vary incentive outcomes as deemed
appropriate considering the Group’s performance.
Targets, metrics and weightings are disclosed in the Implementation Report
and reviewed annually.
The Committee supports a ratio of 70% towards financial targets and 30%
towards non-financial targets, as appropriate to support our integrated
strategy.
If financial targets are not achieved, the outcome against non-financial
targets in excess of 100% is moderated back to 100%.
Target incentive percentages are aligned with the market median.
The Group Scorecard is designed to evaluate outcomes in terms of the
threshold (0%); target (100%) and stretch (150%). Where appropriate, a
straight-line between these points determines the required performance levels
for progressive outcomes.
The Malus and Clawback Policy as well as the Sasol Executive Compensation
Recovery Policy (SEC s10(d)) is applicable in respect of variable pay.
Application
Every quarter, the Committee reviews year-to-date performance against the
Group STI. Individual scorecards, which are based on well-defined objectives,
cover specific projects or strategic focus areas which are not included in the
Group STI scorecard.
The fatality penalty of three percentage points per fatality is deducted from
the final STI percentage to a maximum of 20%.
Individual performance is assessed against strategic priorities which are
cascaded from the group strategy, and is assessed on a scale of 0%–150%.
An average IPF across the GEC and GEC1 cohorts, may only exceed 100% if
approved by the Committee.
The Committee approves the final Group STI outcomes in the August meeting
after the end of the financial year, also considering affordability and overall
organisational performance. The Committee applies their discretion in terms
of the final score.
Approved pay-outs are processed with the September salary.
The absolute maximum of pay-outs is calculated at TGP/Base salary x
Target% x Group Score (0–150%) x IPF (0–150%). This formulae will be
reviewed by the Committee in FY25.
NEDs are not eligible to participate in the STI Plan.
VARIABLE PAY
STI
STI performance outcomes for FY24 are set out on page 148.
SASOL INTEGRATED REPORT 2024
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