SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 136
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PORTFOLIOS
ESG
REMUNERATION REPORT
PART I: REMUNERATION AT A GLANCE
DATA AND ASSURANCE / ADMINISTRATION
Remuneration Policy Summary for FY25: Group Executive Committee
Our Remuneration Policy
Our Remuneration Policy (The Policy) is strategically aligned with Sasol’s
overarching goals and priorities. It is designed to foster a high-performing,
sustainable, and values-driven culture, which remains a fundamental objective
for our organisation.
The policy aims to achieve
a delicate balance amongst
cost containment, risk
management, and value
creation for our stakeholders.
By establishing appropriate
and market-aligned reward
structures, we seek to
incentivise performance
while ensuring the long-term
sustainability and
competitiveness of the
organisation.
TGP or
Base
Salary
Market Position
Benchmarking
Salary increase principles
Positioned at
50th percentile
of the market
Remchannel (SA)
KornFerry (international)
and publicly disclosed
remuneration data from
Peer Group
Based on CPI,
affordability and
market positioning
KPIs and Weightings
Modifier
Affordability cost threshold
Fatality Penalty
Free Cash Flow
High-Performing, Sustainable, Values-driven Culture
FIXED
PAY AND
BENEFITS
SHORTTERM
INCENTIVES
LONGTERM
INCENTIVES
Market-aligned
Performance-linked
with values focus
Long-term value
creation and talent
retention
Short-Term
Incentives
(FY25)
Group Financial KPIs 56%
Group ESG KPIs 24%
Personal KPIs 20%
KPIs and Weightings
Long-Term
Incentives
(FY23)
Our remuneration architecture is designed to align performance with
purpose – ensuring people are rewarded fairly, are inspired to deliver,
and empowered to build long-term value.
ESG 25%
1 Balanced Remuneration We benchmark remuneration
to the market median, with a distribution around
the median informed by individual performance and
the scarcity of critical skills. Pay mix varies by role type
and is aligned with local market practices.
3 Living Wage Commitment Entry-level salaries exceed
generally accepted living wage benchmarks and,
in most locations, surpass negotiated minimums.
This is further supported by employer-subsidised
benefits at lower levels of the organisation.
4 Shareholder Alignment Executive remuneration
outcomes are closely aligned with shareholder
interests, ensuring a strong link between performance
and value creation.
Restricted shares:
35% with a 5 year
vesting period
FY25 Remuneration Policy Enhancements
Our Remuneration Policy is built upon core principles designed to support our balanced and integrated Employee Value Proposition, ensure equitable practices, and align
employee incentive targets with the strategic priorities of Sasol. These principles include:
1
2
Performance shares:
65% with split vesting
period 50% after 3 years
and 50% after 5 years
rTSR 35%
Remuneration Principles
2 Fairness and Transparency Our reward processes
are clearly communicated, consistently applied, and
grounded in equity and fairness. We do not tolerate
any form of unfair discrimination. Annual pay gap
analyses are conducted to ensure ongoing fairness.
Vesting Period
ROIC 40%
5 Self-Funded Incentive plan design Incentive
plans reward group and individual performance
and are designed to support Sasol’s sustainability
over the short, medium, and long term. Incentive
payments are subject to an affordability test,
ensuring sufficient positive free cash flow before
payouts are made.
7
6
Reward:
A key component of
My Employee Value
Proposition
3
5
4
6 Risk Mitigation Robust governance and approval
processes are in place to manage remunerationrelated risks and ensure sound decision-making.
7 Holistic Total Reward We offer a comprehensive
mix of monetary and non-monetary rewards,
integrated into our broader employee
value proposition. This includes benefits,
development opportunities, and a positive work
environment that supports employee wellbeing
and engagement.
Committee Oversight The Committee is authorised to intervene in situations through the application of discretion where formulaic variable pay plan outcomes appear
inappropriate, are not aligned with business performance, or have been unduly influenced by factors outside of management’s control.
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In FY25, changes were implemented to the
Remuneration Policy to further align with our
strategic objectives:
Short-term incentive (STI) Formulae Modification –
In support of driving business performance in a One
Sasol Way, the weighting of the Group score in the
STI calculation for our management and leadership
cadre, was increased from 50% to 80% with 20%
allocated to individual performance objectives.
‘My Incentive Plan’ – To enable employees below
supervisory levels, to have greater line of sight to their
earned short-term incentive, a differentiated short-term
incentive plan was designed and implemented. A portion
of the annual on-target incentive amount, is allocated to
safe production volumes. The balance incentive amount
was linked to the Group STI Scorecard.
The Mining Production Bonus Plan – This was
redesigned to integrate safety into the production
targets, as opposed to being calculated separately.
