Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 25
Mpho Nkeli
Chairman of Remuneration Committee
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Shareholder feedback
This report provides an overview of Sasol’s Remuneration Policy,
the incentive targets that support the Group’s priorities as well
as the reward outcomes for Executive Directors and Prescribed
Officers informed by performance against targets.
It also details the feedback received from shareholders in 2021 and
the actions the Committee took to address these, as well as the
impact of COVID-19 on remuneration decisions. The past financial
year has proven to be yet another challenging year due to the
continued impact of COVID-19 on our employees, our customers,
the communities in which we operate and the global economy.
Although the demand for our products improved during the second
half of the financial year, extreme weather events in the US Gulf
Coast and in South Africa disrupted our operations during the FY21
year. Despite these devastating impacts, our business results have
steadily improved over the reporting period showing our resilience
during adverse times. The Committee is grateful to all Sasol people
for their support and understanding of actions taken in 2020 and
for their focused delivery of our priorities in 2021.
Focus areas in 2021
• Simplification of the short-term incentive (STI) formula with
only one group incentive scorecard;
• Review of target incentive awards. Target LTI awards for the
CEO and CFO were reduced;
• Extension of minimum shareholding requirements (MSRs) to
Prescribed Officers;
• Review of the LTI plan design principles to include some
restricted shares for Prescribed Officers and Executive
Directors with a five-year vesting period;
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To address this sharp reduction in support, Sasol invited
shareholders via a SENS announcement and email invitations to
the 40 largest investors to virtually meet with me to discuss their
concerns and reasons for their dissenting votes. I am grateful
for the time that many of our investors devoted to these online
meetings, for their transparent feedback and suggestions, certain
of which are reflected in policy changes that the Committee
subsequently made, remaining mindful of the impact of its
decisions on all stakeholders.
2020
2019
2018
71,46%
83,37%
78,53%
2020
2019
2018
43,21%
71,65%
75,81%
• Review of all STI and LTI targets to align with Future Sasol
priorities and include a holistic focus on sustainability
matters;
• Review of the peer group to include a balance of South
African listed companies, energy and chemicals companies
that represent our product range of mining, chemicals, fuel
and gas, geographical footprint and enterprise value;
• Delayed special salary adjustments for certain categories of
employees; and
• Review of Non-Executive Director (NED) fee structure.
Sasol Annual Financial Statements 2021
OTHER
Dear stakeholder
At our Annual General Meeting (AGM) in November 2020, support
for the Remuneration Policy dropped to 71,46% from 83,37% in
2019. But more disappointing was the fact that only 43,21% of
shareholder votes were in support of the non-binding advisory
resolution on the Implementation Report, compared to 71,65%
in 2019.
REMUNERATION
POLICY
▪ Acting on stakeholder feedback at the AGM
▪ Reviewing our Remuneration Policy in the context of
continual value creation for all stakeholders and our Future
Sasol strategy
▪ COVID-19’s continuing impact on business results and
resultant reward outcomes
IMPLEMENTATION
REPORT
KEY MESSAGES
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
The Committee’s key task is to
ensure that executive remuneration
is aligned with stakeholder value
creation in the context of the short,
medium and long-term strategy. On
the back of a much improved set of
business results, we believe that this
alignment has been achieved.
NOTES TO THE FINANCIAL STATEMENTS
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SASOL LIMITED COMPANY
REMUNERATION REPORT | CHAIRMAN’S LETTER