sasolFin24 reports that the fees of Sasol’s directors will be slashed by 20%, the company said on Wednesday, in anticipation of shareholders disapproving a resolution on executive remuneration at the petrochemical group’s upcoming annual general meeting.  

The group said the decision to cut fees was taken in light of "the erosion of shareholder value over the past two years", which has seen the company sink into a precarious debt position.  It has had to start selling assets and is considering raising $2 billion in capital to bolster its balance sheet.  A proposal to pay non-executive directors the same fees from 20 November 2020 as approved by shareholders in 2018 was scheduled to be voted on at the AGM on Friday.  However, the company said on Wednesday that its board had committed to a "sacrifice of 20% on the board fees proposed for approval at the 2020 AGM."  It added that the fee sacrifice would remain in place until a revised fee proposal was considered by shareholders at Sasol’s 2021 AGM.  The 20% cut will apply to chairperson and board fees.  In a sign of what lies ahead for Sasol at Friday's meeting, Just Share, a non-profit shareholder activism organisation indicated its intention to vote against the remuneration policy and implementation report.  The group said it would also not support the remuneration for non-executive directors, on the grounds that their pay "represents excessive reward for part-time commitments, in particular in light of Sasol’s current financial position and its failure to adequately manage climate risk."

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