Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 35
Chemicals Companies
Energy Companies
Anglo American Platinum
Albemarle
Continental Resources
AngloGold Ashanti
Covestro
Devon Energy Corporation
Gold Fields
Eastman
Hess Corporation
Impala Platinum Holdings
Evonik Industries
Imperial Oil
MTN Group
Lanxess
Origin Energy
Sibanye Stilwater
Solvay
Repsol
The Committee will however consider the inclusion of larger competitors for purposes of determining relative total shareholder return on
awards made under the 2022 LTI plan.
Base salary/total guaranteed package (TGP) and benefits
South African employees who are not covered by collective bargaining agreements receive a TGP which includes employer contributions
towards retirement, risk and healthcare benefits. In terms of this model, all changes to benefit contribution levels are cost neutral to Sasol.
Increases in the benefit pricing of employee and employer contributions reduce the net cash salary of employees. All other employees
receive a base salary with Sasol’s contributions to benefit funds being calculated and paid over. In some jurisdictions, a thirteenth cheque is
payable. Salaries are benchmarked to the market median with distribution around the market median based on performance, competence
and scarcity of skill.
Variable pay plans
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
JSE Primary Listed companies
NOTES TO THE FINANCIAL STATEMENTS
We again reviewed the peer group and agreed that a balanced combination of companies that have a primary listing on the JSE Ltd,
international chemicals and energy companies would be a sound approach to compile the benchmark peer group. There are limited
companies in South Africa that resemble Sasol’s complexity, business model and geographical footprint. We considered the contribution of
our chemicals, fuel, gas and mining businesses to EBITDA and Gross Margin and agreed to not include companies from the retail or financial
services sectors. With regard to chemicals and energy companies, market capitalisation, product mix, geographical footprint and enterprise
value formed part of the criteria for inclusion. The following peer group was adopted effective 1 July 2021:
STI plan
STI target % of base salary/TGP
Target percentage is linked to the role
category of the position
Group performance factor
(0% to 150%)
Performance measured against group
financial and non-financial targets
informed by the Group’s key priorities
X
X
Individual performance factor
(0% to 150%)
Assessment of individual performance
against project milestones, personal,
business unit or functional targets
LTI plan
The LTI plan gives participating employees the opportunity, subject to the vesting conditions, to receive Sasol ordinary shares or ADRs.
After the vesting period, which varies between three and five years, participants may sell or retain the shares. Accelerated vesting principles
in cases of termination for ‘good leavers’ do not apply to Top Management. A service penalty is applied for participants whose services are
terminated under ‘good leaver’ conditions before the end of the performance period. In jurisdictions where we do not offer an equity-settled
award due to legislative restrictions or where we choose not to make an equity-settled award, eligible employees may participate in a
cash-settled LTI plan with the same conditions that are applicable to equity instruments, except that they are settled with cash.
SASOL LIMITED COMPANY
For 2021, Sasol adopted a group incentive scorecard. The formulae to be applied in the final incentive outcome is as follows:
OTHER
The current equity-settled plan was approved by shareholders in 2016, for implementation of all awards made since 2014 (i.e. previous
cash-settled awards were converted to equity-settled awards). The maximum number of shares to be made available for awards to eligible
participants equated to less than 5% of the issued shares of the Group at the time.
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Sasol Annual Financial Statements 2021