Sasol Limited Integrated Report 2021 - Book - Page 38
Report of the Remuneration Committee (CONTINUED)
Alvarez & Marsal Taxand, UK (A&M) continued to act as independent
external advisors to the Committee. A&M provided information
on global reward trends and market insights into discussions
on executive reward matters. A&M does not provide any other
services to Sasol.
An external review of the executive remuneration policy was also
conducted by Mr Martin Hopkins, Head: Reward Advisory Services,
Bowmans Law, which confirmed that the Remuneration policy
complies with statutory and governance requirements, is aligned
with peer groups and more importantly, our short-term and
The Committee was satisfied with the advisors’ independence.
Many changes have been made to the reward policy in the past two
years and the Committee is of the view that it should now allow time
for these changes to be implemented. We will continue to ensure that
ESG issues receive the necessary attention, and to this end, incentive
targets for 2022 have a more specific focus on Sasol’s drive to reduce
carbon emissions and adopt a holistic approach in the incentive plans
on ESG matters balanced with the requirement to continue to deliver
financial returns to our shareholders.
Decarbonising our operations is a cornerstone of our strategy and
is carefully balanced with other priorities to ensure a sustainable
future. Key interventions which will result in step change reductions
in our emissions will be incentivised as appropriate.
Because the Group has high levels of debt, it is focused on cash
fixed cost management and prudent capital allocation. To motivate
employees to work together to stabilise the new operating model,
the Committee has agreed to re-introduce the Business Unit
scorecard in the STI calculation for 2022.
As most employees did not receive a full increase, nor any STI
in 2020, the Committee approved annual salary increases for
employees for calendar year 2021/22. These are aligned with
forecast and market movements in relevant Sasol jurisdictions.
There is also a renewed focus on the retention of key employees.
Therefore, a portion of the LTIs to the Group Executive Committee
members will continue to be in restricted shares with a five-year
vesting period also enabling them to work towards meeting the
minimum shareholding requirements. Incentive targets have been
reviewed and will align closely with our strategic priorities for 2022.
The Committee remains committed to ensuring that Sasol’s
Remuneration Policy and the implementation thereof is fair and
responsible, enabling the achievement of the Group’s strategic
priorities including value creation for our shareholders, clients,
communities and employees. The Committee is satisfied that the
policy meets the agreed objectives and that the remuneration
outcomes for this year reflect alignment between performance and
rewards and are appropriate and fair considering what was achieved
over the past year. Ultimately, our success will be reflected in the
Sasol share price which significantly contributes to the reward
outcomes of our executive team.
I would like to thank our shareholders for engaging with me and
look forward to their endorsement of the advisory votes on our
Remuneration Policy and Implementation Report at the 2021 AGM.
I would also like to extend my personal thanks to the Committee
members for their support, input and guidance over the past year.
• Sasol’s Remuneration Philosophy is to use internally equitable
and externally competitive yet affordable salary, benefits and
incentive structures to attract, retain and motivate qualified,
skilled and engaged employees to work towards achieving
Group strategic objectives in a values-driven manner and to
create stakeholder value responsibly and sustainably.
• We strive to offer a balanced mix of remuneration programmes
to all employees benchmarked on average to the market
median with actual distribution around the median based
• Executive remuneration has a strong link to shareholder
interests, particularly the design of variable pay structures.
• In setting incentive metrics, we consider value drivers which
are mostly within management’s control.
• The remuneration mix depends on the position in the
organisational structure as well as geographical market practices.
For clarity, the following terms are used for reporting purposes:
President and CEO
for the Group,
reporting to the
Chairman of the Remuneration Committee
GEC – CFO, other
Senior Vice Presidents
(SVP) – Group
The GEC has
to set the strategy
and direction for
the Group, to be
approved by the
SVPs have global or
an operating model
Group function, to
ensure that their area
of accountability aligns
strategically with the
Business Unit (BU)
or Group’s direction.
Develops and sets
strategic BU or OME
guidelines, policy and
10 August 2021
*(Post year end another colleague passed away as a result of a work-related
incident at Mining).
This report is a summary of the full remuneration report which is available in the Annual Financial Statements.
This first part of the report describes the roles and responsibilities of management at Sasol and provides an overview of Sasol’s remuneration
philosophy and policy as well as remuneration elements. It is followed by remuneration outcomes in the implementation report.
Number in 2021
• Entry-level salaries are either determined by the Company,
negotiated through collective bargaining or determined
by national legislation. Our minimum wage is higher than what
is considered a living wage for each jurisdiction and is enhanced
by benefits offered under our employee value proposition.
• No form of unfair discrimination will be tolerated, and salary
differentials are substantiated through defensible principles
included in our Remuneration Policy.
• Rewards offered is a cornerstone of our employee value
proposition and well-integrated with the total employment
• Appropriate approval processes are in place to prevent conflicts
of interest and to mitigate risks that may unintentionally result
from our remuneration programmes.
• The Committee is empowered to intervene in exceptional
circumstances when formulaic outcomes appear to be
inappropriate and/or not aligned with business performance.
(VP) – leadership
VPs have regional,
sector or functionspecific responsibility
for a portion of a BU
or Group function.
VPs contribute to
and then translate
this into tactical
plans, policies and
leaders who drive
specific areas of
the management of
1 023 (1 061)
1.We occasionally refer to Top Management in the report, which includes the President and CEO, GEC and Senior Vice Presidents.
By linking the
Sasol complies with the relevant remuneration governance codes
and statutes that apply in the various jurisdictions within which
The President and CEO, the EVP: Human Resources and Stakeholder
Relations, and the VP: Global Rewards and Human Resources
Information System (HRIS) attend Committee meetings by invitation.
Members of management are recused from meetings when their
own remuneration is discussed. In all meetings, the Committee
discusses and confirms all decisions taken, without management
present. A&M Managing Director Mr David Tuch acts as an
independent advisor for the Committee.
Remuneration Committee governance
The Committee is appointed by the Board to assist in ensuring
that the Group remunerates its employees fairly, responsibly and
transparently by implementing affordable, competitive and fair
reward practices to promote the achievement of strategic objectives
and positive outcomes in the short, medium and long-term.
The Committee’s terms of reference and the Group Remuneration
Policy are available at www.sasol.com
T THE POLIC
Our Remuneration Policy is a crucial enabler of Sasol’s strategy. A sustainable, high-performance and values-driven culture remains the key
objective. The policy design strives to provide competitive, market-aligned pay while balancing the need for cost containment, risk management
and value creation to stakeholders.
Y W E D O T HIS
Sasol Integrated Report 2021
The President and CEO tables the performance of all Prescribed
Officers to the Committee to inform the decisions to award annual
increases and incentive pay-outs. The Chairman of the Board
tables the performance outcomes and proposed rewards for the
Executive Directors at the Committee which recommends it for
approval to the Board.
All incentive pay-outs, as well as the vesting of LTIs which will vest
subject to the performance period ending June 2021, were approved on
the basis of actual performance against previously approved metrics.
Our reporting aligns with:
• South African Companies Act requirements;
• principles and recommended practices of King IVTM;
• requirements of the Securities and Exchange Commission (SEC)
for foreign private issuers; and
• The Johannesburg Stock Exchange (JSE) Listings Requirements.