| Remuneration report Pages | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
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| The compensation committee |
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| This committee has operated since 1989 as a sub-committee of the
Sasol Limited board. It focuses its activities on the group’s remuneration
policy, the determination of levels of remuneration and annual and long
term incentive plans. |
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| The mandate of the compensation committee is to: |
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provide guidance on the evaluation of the performance of executive directors; |
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A further 4 829 200 shares were issued during the year in terms of the Sasol Share Incentive Scheme. |
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review and recommend to the board the remuneration of executive directors; |
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review and recommend to the board the remuneration of executive directors; |
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approve principles on which short-term incentives for all staff are based; |
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approve the formulae on which all grants pursuant to the Sasol group’s long term incentive schemes to staff are based; and |
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approve the overall cost of remuneration increases awarded to staff. |
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| The terms of reference of the compensation committee can be found on
the Sasol website at www.sasol.com. |
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| The compensation committee is composed of five members: Messrs
PV Cox, S Montsi, BP Connellan, Ms E le R Bradley and Mr HG Dijkgraaf.
Mr Clewlow retired from the committee with effect from 1 January 2007.
With the exception of Mr PV Cox, all the members of the committee are
independent non-executive directors. Mr HG Dijkgraaf, an independent
non-executive director, was appointed as chairman of the committee
with effect from 8 September 2007. Mr PV Cox served as chairman of
the committee until 8 September 2007 due to his vast knowledge and
experience of the company. In line with the recommendations of King II,
the chief executive attends the meetings of the committee at the request
of the committee, but he and other members of management are
requested to leave the meeting before any decisions are made. |
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| The compensation committee also considers external market surveys
on remuneration matters. |
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| In applying agreed remuneration principles, the compensation
committee is committed to principles of accountability, transparency
and to ensuring that the reward arrangements are linked to performance
and that they support the business strategy. |
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| Group remuneration philosophy |
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| Recognising that the group is operating in an international environment,
the Sasol remuneration philosophy: |
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plays an integral part in supporting the implementation of Sasol’s international business strategies; |
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motivates and reinforces individual and team performance; |
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integrates financial and non-financial rewards and benefits; and |
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is applied equitably, fairly and consistently in relation to job responsibility, the employment market and personal performance. |
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| Sasol’s application of remuneration practices in all businesses and functions in South Africa and internationally: |
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aims to be market competitive in the specific labour markets in which people are employed; |
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determines the value proposition of the various positions within job families or functions; |
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ensures that performance management forms an integral part of remuneration, thereby influencing the remuneration components of base pay and incentives; and |
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applies good governance to remuneration practices within approved structures. |
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| The alignment of these remuneration principles aims to meet the strategic objectives of: |
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attracting, retaining and motivating key and talented people; |
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competing in the marketplace with the intention of being a preferred employer; |
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rewarding individual, team and business performance; and |
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supporting Sasol’s core values of customer focus, winning with people, excellence in all we do, continuous improvement, integrity and safety. |
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| Policy on directors’ fees and remuneration |
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| The directors are appointed to the board based on their ability to
contribute competencies and experience appropriate to achieving the
group’s objectives as an international business. The purpose of the policy
on directors’ fees and remuneration is to ensure that executive directors
and senior managers receive remuneration that is appropriate to their
scope of responsibility and contribution to the group’s operating and
financial performance, taking into account industry norms, and external
market and country benchmarks. |
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| In applying the remuneration principles adopted, the compensation
committee aims to encourage long-term performance and to
continuously align such performance with the strategic direction and
specific value-drivers of the business. |
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| Executive directors |
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| At present, the remuneration of executive directors consists of two
components: a fixed component and a variable component comprising an
annual executive performance incentive and long-term incentives in terms
of the Sasol Share Incentive Scheme and/or the Sasol Share Appreciation
Rights Scheme. Both fixed and variable components are designed to
ensure that a substantial portion of the remuneration package is linked
to the achievement of improved group business performance. The Share
Appreciation Rights Scheme was implemented with effect from
March 2007 and will replace the Sasol Share Incentive Scheme in time. |
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| Up to 21% of the approved cash salary and the annual performance
incentive elements of the executive directors’ remuneration are determined
and paid in terms of separate employment agreements concluded
between Sasol Holdings (Netherlands) BV and the respective executive
directors. The actual percentages paid by Sasol Holdings (Netherlands)
BV are calculated on the basis of the time required to perform services
offshore for Sasol Holdings (Netherlands) BV. |
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Sasol limited group