Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 30
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SASOL LIMITED GROUP
Report of the Remuneration Committee continued
Benefits and allowances – Policy and
strategic intent
Benefits include, but are not limited
to, membership of a retirement plan,
healthcare and risk cover to which
contributions are made by both Sasol
and the employee. In South Africa, these
apply to employees outside of collective
bargaining structures.
Allowances are paid in terms of statutory
compliance or as are applicable in a
sector/jurisdiction.
A number of special allowances including
housing, cost of living, home-leave and
child education are included in the Group’s
Expatriate Policy.
Strategic intent:
• Compliance with legislation or
co-determination agreements.
• Strengthening of the employee value
proposition where benefits are offered
as a general market practice.
Benefits and allowances – Application
Outcomes 2021
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 pay-out. The quantum depends
on which retirement plan they belonged to.
Sasol uses different options to provide
healthcare to employees and their families
by means of medical insurance and/or
public health plans, as well as additional
insurance in countries where appropriate.
All employees have healthcare cover in the
event they are infected with COVID-19.
Allowances are linked to roles within
specific locations and are paid together
with salaries.
Expatriate benefits and allowances
are offered in terms of country and
assignment policies.
Employee wellbeing is the cornerstone of
labour stability. Sasol continues to roll out
psychosocial, physical and safety culture
interventions especially during this time of
COVID-19 stress and related issues such as
online meeting fatigue and dealing with the
bereavement of a loved one.
Sasol introduced special leave categories to
accommodate lockdown periods in various
jurisdictions. No employees were asked to
take unpaid leave because of lockdowns
or the shutdown of operations due to
COVID-19.
The Committee confirmed that, in all
countries where employees participate in
private retirement funds, the governance of
these funds meets fiduciary requirements
and all defined benefit fund liabilities
are appropriately detailed in the Sasol’s
Statement of Financial Position.
Where employer contributions were
suspended to retirement funds, this
applied for the period May 2020 – July
2020. They were then reinstated due to
Sasol’s improved liquidity position at
the time.
• To protect cost of living for employees on
expatriate assignments.
STI – Policy and strategic intent
STI – Application
Outcomes 2021
For the majority of our permanent
employees across the world, we apply a
single STI structure. Approved pay-outs
are processed with the September salary.
Most non-managerial mining employees
earn a production bonus which is processed
bi-weekly, subject to safe production
against mining targets.
Every quarter, the Committee reviews
YTD performance against the Group STI
scorecard to ensure ongoing relevance of
targets and performance against these.
The Committee approved a Group STI
scorecard focused on achieving the Future
Sasol priorities. Individual performance
outcomes are applied to calculate the final
incentive pay out.
Target incentives align with the market
median.
An individual performance multiplier is
used in a range of 0% – 150% to recognise
individual performance.
No BU or Functional STI scorecards were
used during 2021.
Typically the STI structure consists of
Group, BU or Function and individual
performance targets set in advance of
every financial year.
The Committee can exercise its discretion
to vary incentive outcomes as deemed
appropriate, and based on affordability.
Safety and sustainability metrics, are
measured at Group and Individual levels.
In line with our commitment to actively
reduce carbon emissions, we included
relevant incentive targets in the Group
and Individual scorecards which align
with our Climate Change Roadmap. Where
appropriate and within line of sight, we
included the following targets in individual
performance scorecards:
• safe transportation of hazardous
chemicals;
• occupational health measures;
• carbon emissions; and
• leaks or spills of hazardous materials.
These metrics balance safety,
environmental sustainability, financial
and operational performance criteria. Any
fatality reduces the final incentive score by
3 percentage points.
Group STI performance outcomes for 2021
are set out on page 38.
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Sasol Annual Financial Statements 2021