Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 31
Equity- or cash-settled awards are granted
annually or upon promotion to an eligible
level, where the underlying value is tied to
the market value of a Sasol ordinary share
(or American Depository Receipts (ADR)
for international participants), subject to
vesting conditions.
LTIs form an important part of our reward
mix and target awards are reviewed
annually to ensure ongoing market
competitiveness.
100% of the LTIs awarded to members
of the GEC in 2018 are subject to the
achievement of performance metrics over
the period 2018 – 2021, of which 50%
of the vested award became available in
September 2021.
Annual awards are made with reference to
a percentage of base salary or TGP, which
is level dependent, the eligible employee’s
performance over the preceding year and
the organisation’s requirement for skills
retention.
Participants may sell or retain the vested
shares once vesting conditions are met.
Minimum shareholding requirements are in
place for Executive Directors and Prescribed
Officers.
The Committee annually reviews the LTI
targets to ensure continued alignment with
key priorities.
Vesting of awards is subject to the
achievement of corporate performance
targets (CPTs) and/or service criteria.
The overall performance of the 2018 LTI
awards to the GEC was 44,7%. 22,3%
of the award granted in 2018 will vest
in September 2021 and the balance will
vest in 2023. Participants who leave the
Group for reasons other than retirement,
retrenchment, death, disability or ill health,
or for any other reason approved by the
Committee, will forfeit unvested awards.
To retain top talent, the Committee decided
that 35% of the annual award made to GEC
members in December 2020 should be
time based only in the form of restricted
shares, with a vesting period of five years.
The rest of the on-target award (65%)
will vest on achievement of time and
performance conditions, over a three- and
five-year vesting period. The introduction
of restricted share awards reduced the
maximum potential outcome of LTIs. The
target awards, for the CEO and the CFO,
were reduced considering the introduction
of restricted shares in the LTI portfolio.
The introduction of restricted shares also
supports the requirement for minimum
shareholding requirements which were
introduced for all Prescribed Officers from
2021. This requirement was previously only
in place for Executive Directors.
The vesting period is three years for
participants in Leadership and Senior
Management. A split vesting period of
three to five years applies to participants in
Top Management.
Strategic intent:
• Attraction and retention of senior
employees and scarce and critical skills.
• Alignment with shareholders’ longterm interests with reference to the
Sasol share price and the underlying
performance metrics.
OTHER
Details on the 2021 metrics are set out on
page 39.
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
Outcomes 2021
NOTES TO THE FINANCIAL STATEMENTS
LTI plan – Application
SASOL LIMITED COMPANY
LTI plan – Policy and strategic intent
29
Sasol Annual Financial Statements 2021