Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 29
The President and CEO, the EVP: Human Resources and Stakeholder
Relations, and the VP: Global Rewards and Human Resources
Information System (HRIS) attend Committee meetings by
invitation. Members of management are recused from meetings
The President and CEO tables the performance of all Prescribed
Officers to the Committee to inform the decisions to award annual
increases and incentive pay-outs. The Chairman of the Board
tables the performance outcomes and proposed rewards for the
Executive Directors at the Committee which recommends it for
approval to the Board.
All incentive pay-outs, as well as the vesting of LTIs will vest
subject to the performance period ending June 2021, and were
approved on the basis of actual performance against previously
approved metrics.
Regulatory compliance
Our reporting aligns with:
• South African Companies Act requirements;
• Principles and recommended practices of King IVTM;
• Requirements of the Securities and Exchange Commission (SEC) for secondary issuers; and
• The Johannesburg Stock Exchange (JSE) Listings Requirements.
The following table provides an overview of the remuneration elements and strategic intent of each component:
Fixed pay – Policy and strategic intent
Fixed pay – Application
Outcomes 2021
Base salary or Total Guaranteed Package
(TGP) depending on location.
Employees in countries other than South
Africa and employees in the South African
bargaining sectors are paid a base salary
rather than a TGP.
No annual salary increases were approved
for employees in July/October 2020.
However, in some jurisdictions such as the
US and Germany, multi-year agreements
had to be honoured.
The Committee approves the cost of annual
increases after considering market and
economic data as well as affordability.
Mandates are provided for salary increase
negotiations with recognised trade unions
and works councils.
Strategic intent:
• Attraction and retention of key
employees
• Internal equity and external
competitiveness
• Affordability
• Recognition of competence and/or
individual performance
In South Africa, the minimum wage we
pay is compared with the living wage for a
family as provided by Trading Economics.
The total employment cost of salaries,
benefits, allowances and incentives for
the lowest level mining employee with
3 dependants on the medical scheme, is
R275 904 per annum.
Salaries are paid monthly to all employees
except for those in the United States and
Canada who receive bi-weekly payments.
Employees who are promoted are
considered for salary adjustments where
justified.
For employees outside the collective
bargaining sectors, annual increases are
processed with effect from 1 October. These
typically comprise of an across-the-board
increase and a portion at management’s
discretion. Other employees receive acrossthe-board increases with effect from 1 July.
Outside of South Africa, annual salary
increases are also negotiated with trade
unions and works councils in the US,
Germany and Italy.
The Committee however agreed during
H2/2021 to increase the salaries of
employees below Leadership in recognition
of the outstanding efforts to achieve
the Sasol 2.0 targets. The increase
was linked to the market movement in
salaries over the period and was effective
1 January 2021 for employees covered by
collective bargaining agreements and on
1 April 2021 for supervisory and managerial
employees, provided that the employee
had been in service since 1 January 2020
and had not received any interim or
promotional adjustment since. No member
of Leadership or Executive management
benefited from this increase.
From 1 May to 31 July 2020, 6 900
employees took a salary sacrifice of 10%
to 24%, depending on their roles and
11 500 agreed to a pension fund employer
contribution sacrifice realising ~R460m in
cash fixed cost savings.
OTHER
Broad pay bands 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 key objectives.
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
The Committee is appointed by the Board to assist in ensuring
that the Group remunerates its employees fairly, responsibly
and transparently by implementing affordable, competitive and
fair reward practices to promote the achievement of strategic
objectives and positive outcomes in the short, medium and
long-term. The Committee’s Terms of Reference and the Group
Remuneration Policy are available at www.sasol.com.
when their own remuneration is discussed. In all meetings, the
Committee discusses and confirms all decisions taken, without
management present. A&M Managing Director Mr David Tuch acts
as an independent advisor for the Committee.
NOTES TO THE FINANCIAL STATEMENTS
Sasol complies with the relevant remuneration governance codes
and statutes that apply in the various jurisdictions within which
it operates.
SASOL LIMITED COMPANY
Remuneration Committee governance
27
Sasol Annual Financial Statements 2021