Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 36
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SASOL LIMITED GROUP
Report of the Remuneration Committee continued
Minimum Shareholding Requirements (MSRs)
In August 2020, the Committee extended the MSR to all Prescribed Officers to be achieved within a period of six years effective
4 December 2020. Executive Directors have a MSR which is to be achieved within five years of their appointment date. The MSR enhance the
alignment of interests with shareholders with a focus on long-term company performance.
• President and Chief Executive Officer:
300% of annual pensionable remuneration
• Chief Financial Officer:
200% of annual pensionable remuneration
• Other Executive Directors:
100% of annual pensionable remuneration
• Prescribed Officers:
100% of annual pensionable remuneration
Pay mix: minimum, on-target, and maximum performance for executive
management
The threshold, target and maximum reward outcomes for 2020 and 2021 for Executive Directors and Prescribed Officers are illustrated in the
following graph:
800
182%
GEC
Threshold
100% 169%
2022
CFO
Max
220%
2021
CFO
Max
100% 169%
100% 203%
2020
CFO
Max
100% 75% 110%
206%
100% 203%
2022
CFO
Target
100% 75% 110%
231%
100% 203%
2021
CFO
Target
2021
2020
CFO
CFO
Threshold Target
100%
300%
125%
100% 90%
100% 259%
2022
CEO
Max
140%
100% 259%
2021
CEO
Max
2021
CEO
Target
100% 90%
100% 259%
2020
CEO
Max
2021
2020
CEO
CEO
Threshold Target
150%
247%
150%
100% 115%
0
100%
200
100% 90%
267%
180%
100% 115%
2022
CEO
Target
400
100%
400%
200%
100% 115%
600
2020
GEC
Target
2021
GEC
Target
2020
GEC
Max
2021
GEC
Max
Percent %
TGP
STI
LTI
*Only TGP or Base salary will be payable in the event of below threshold performance on the variable pay plans. GEC includes “other directors”.
The graph indicates a balanced portfolio of the total remuneration mix for the Group executive team. It indicates rewards allocated in terms
of base salary/TGP, STIs and LTIs, which are subject to the achievement of Group and individual targets to ensure a sustained focus on the
Group’s objectives. The target and maximum potential LTI awards for the President and CEO and CFO were reduced over a two-year period.
Apart from a reduction in the maximum LTI award, no changes will be implemented for other members of the GEC for 2022.
Special retention awards and sign-on or buy-out awards
The sign-on payment and retention policy may be used in the recruitment of candidates in specialised or scarce skill positions, mostly in
senior levels, or to retain critical skills. Cash retention payments are linked to retention periods of at least two years. Retention shares may
be granted under the LTI plan.
Executive service contracts
• The President and CEO’s contract was originally set to end in November 2022. By Board resolution it was extended to 31 December 2024,
resulting in a five-year contract term.
• Members of the GEC have permanent employment contracts with notice periods of three to six months. The contracts provide for salary
and benefits as well as participation in incentive plans on the basis of Group and individual performance and as approved by the Board.
EVPs who are members of the South African Sasol Pension Fund are required to retire from the Group and as directors from the Board at
the age of 60, unless they are requested by the Board to extend their term. Perquisites available to the members of the GEC are disclosed
in the Implementation Report.
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Sasol Annual Financial Statements 2021