SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 140
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PORTFOLIOS
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
PART II: REMUNERATION COMMITTEE CHAIRMAN’S BACKGROUND STATEMENT continued
The following changes were introduced during
FY25 into our remuneration plans:
A The formula for the calculation of short-term
incentives for members of the group executive
committee and leadership role categories
was amended to include a larger weighting in
respect of Group Performance (from 50% to
80%) balanced with Individual Performance
at 20%, compared to 50% previously.
A In addition, the group and individual
performance outcomes are now added
together (80% + 20%) reducing the maximum
short-term incentive potential.
A Long-term incentive targets now incorporate
a commitment to sustainably reducing our net
debt in US dollar terms which was offset with
a reduced weighting in respect of the ROIC
targets and aligns with the current capital
allocation policy.
The Committee’s focus for the year under review
To ensure our remuneration practices remain
relevant and reflective of our complex business
model and economic value created, the Committee:
A Reviewed and approved the executive pay-mix.
A Approved the annual salary increase cost for
employees across the organisation on 1 July
or 1 October respectively and recommended
to the board for approval the actual salary
increases for members of the group executive
committee.
A Approved the design principles and targets for
the FY25 short-term Incentive and long-term
incentive awards.
A Reviewed pay gaps at horizontal and vertical
levels for all locations where we employ more
than 200 employees confirming that there are
no prevalent structural discriminatory practices.
A Considered the People Risk matters as outlined
in the quarterly Group Risk Report.
A Considered whether or not any Trigger Event
had occurred requiring the Clawback and Malus
Policy to have been applied during the year.
A For the first time since 2021, reviewed the
peer groups used for executive remuneration
benchmarking purposes and approved a new set
of peer group companies for FY26. Further focus
areas for FY26 are addressed later in this section.
Remuneration outcomes align with
business performance
In addition the improved engagement scores in our culture surveys and the positive market reaction on
the capital markets day commitments were also considered during the assessment of the STI outcomes.
The final GEC STI score of 54,50% (after fatality penalty is applied) is still far below what we believe
should be achieved, but an improvement of the 38% approved for FY24.
KPI
Weight
Threshold
0%
FY25 has seen a mix of performance outcomes
for Sasol where we maintained strong financial
discipline, and an overall improvement in safety
performance, but did not meet the targets we
set for production volumes, gross margin and
free cash flow.
Process and
Occupational Safety
20%
50%
Energy Efficiency
10%
Synfuels Production
Volumes
5%
0,00%
Due to the strict focus on cash fixed costs,
a salary increase budget of 70% of FY25 inflation
in the various jurisdictions where we operate
was approved. Market adjustments where
required, were approved to ensure alignment
between salaries and the complexity/seniority
of the role and the individual performance of
the executive.
GEC STI
Outcome
Gross Margin
15%
0,00%
54,50%
Absolute Cash Fixed Cost
10%
150%
15,00%
Capital Expenditure
15%
150%
22,50%
FY24 GEC STI
achievement
was 38,81%
Free cash flow (before
capex and dividends)/
turnover ratio
25%
STI Outcomes
Fatality Penalty
“A reduction in the number of hospitalisations due
to injuries at work” was a new target introduced
for FY25. It is always difficult to set targets for
the first time, but this metric helped us focus
more critically on visibly sending our people home
safely, every day. We were able to analyse the data
and saw that the severity of injuries significantly
reduced over the past year – which is the
behaviour we want to drive. Six hospitalisations
which were done for precautionary, observation
purposes only, were not considered in the final
result. As in prior years, over-performance in
non-financial targets were moderated back to
100% as the financial targets were not met
sufficiently.
Cash fixed cost and capital expense management
was exceptionally well controlled which resulted in
improved absolute free cash flow.
The Committee is comfortable that the final
outcome of the Group STI result is representative
of the performance of the organisation across a
wide spectrum of key priorities.
Target
100%
Maximum
150%
Weighted
Result
10,00%
100%
10,00%
0,00%
-3,00%
54,50%
Unfortunately, due to the tragic loss of Mr Mzwandile Dlamini (an employee of a service provider who
was erecting a scaffold in Secunda in August 2024), a fatality penalty of 3% was applied to the final
STI outcome.
LTI Plan Outcomes (FY23 awards which will vest during FY26)
The LTIs to vest during FY26 (which were awarded in FY23 with a performance period of 1 July 2022 –
30 June 2025) sees a mixed set of outcomes. We achieved the ESG targets and the SA ROIC target,
with detractors in our performance in shareholder return relative to our peer group and our offshore
ROIC metric. Our commitment to reducing greenhouse gas emissions and achieving renewable energy
targets remains a focus area and a central priority, and we continue to make progress on these long-term
environmental goals.
Threshold
0%
Target
100%
Maximum
200%
Weighted
Result
176%
43,93%
Outcome
40,00%
83,93%
KPI
Weight
ESG
25%
ROIC SA
30%
ROIC Offshore
10%
0,00%
rTSR
35%
0,00%
133%
83,93%
SASOL INTEGRATED REPORT 2025 139
FY24 LTI
achievement
was 83,64%
