The Industrial Development Corporation (IDC), one of the largest institutional shareholders in petrochemical giant Sasol has hit out at the group for paying former joint presidents and chief executives Bongani Nqwababa and Stephen Cornell (pictured) more than R30 million golden handshakes.
Sasol revealed this in its annual report for the year ended June 2020.
The annual report, which was released Monday, said Cornell’s total remuneration was R68.65 milliion and included a R20.8 million salary, R21.65 million mutual golden handshake and R1.86 million in long-term incentive compensation.
Nqwababa’s total pay package was R27.2 million and included an R14.3 million mutual separation package, a R8.7 million salary and R1.9 million in long-term incentive compensation.
Cornell and Nqwababa had agreed to an amicable mutual separation with the company and stepped down at the end of October last year following cost and project overruns at the Lake Charles Chemicals Project (LCCP) in the US which surged to almost $13 billion from the original $8.9bn estimate.
In a statement by issued by David Jarvis, the divisional executive for strategy and corporate affairs, the IDC said it was unhappy with Sasol’s decision.
“The Industrial Development Corporation (IDC) registers its outrage with the manner in which the Board of the Energy and Chemicals group failed to adequately consult shareholders on the separation packages of The generous mutual separation packages, amounting to an additional R36 million above their approved remuneration packages, do not align to Sasol’s operating and financial performance during their tenure,” Jarvis said.
“Taking into consideration the performance of the company, we wish to express our disapproval regarding the quantum of the separation packages,” he added.
