Sasol Shareholders Press for Dividends Amid Record Profits and Executive Pay Hikes

Sasol, a petrochemical giant valued at R156bn, has faced mounting pressure from shareholders to reinstate dividend payments. The company's last dividend payment was in 2024, and since then, it has prioritized debt repayment, aiming to reach a sustainable debt threshold of $3bn. In the year ended June 2026, Sasol reduced its debt by 11% to $3.3bn, driven by higher cash generation. Despite this progress, shareholders remain impatient, citing the company's record profits and increased executive salaries.

At Sasol's annual general meeting, shareholders pressed the board for a dividend payment, given the company's improved financial performance. Meleen Mostert, a shareholder, expressed frustration, stating that the board's decision to prioritize debt repayment over dividend payments was "untrue" and related to management and board incompetence. Mostert also questioned the company's decision to increase executive pay while maintaining a dividend freeze. In response, board chair Muriel Dube emphasized that the board was mindful of shareholders' patience and stressed that the company was sticking to its dividend policy.

CEO Simon Baloyi explained that the board had not taken the decision to suspend dividend payments lightly, citing the company's precarious financial situation at the time. He pointed to improved cash generation and progress in the company's overall performance, but noted that net debt still stood at $3.3bn, above the $3bn threshold. Baloyi assured shareholders that the company was on track to meet its debt reduction targets and would consider paying dividends once the threshold was reached.

Executive salaries were also under scrutiny, with Baloyi receiving total remuneration of R42.8m in 2026, up from R25.9m the previous year. CFO Walt Burns was paid R20.29m, up from R11.3m, while executive vice-president Vuyo Kahla received R27.69m, up from R17.56m in 2025. The chair of Sasol's remuneration committee, Martina Flöel, attributed the higher executive salaries to market adjustments, stating that some salaries were below competitive market levels.

Despite the dividend freeze, Sasol's share price has rallied, buoyed by a weaker rand and rising oil prices. The company reported higher earnings of R38.31 per share, up from R35.13 per share the previous year. Sasol also reaffirmed its commitment to its 2030 climate change ambitions, including procuring 2GW of renewable energy and reducing its scope 1 and 2 emissions by 30%.

The company is also focused on unwinding its Khanyisa empowerment structure, with Kahla stating that the group would not allow the establishment of a new scheme. Sasol has acquired renewable energy projects, including the Msenge Emoyeni wind power station in the Eastern Cape, as part of its emission reduction roadmap.

Shareholders will continue to monitor Sasol's progress, seeking a return on their investments. Key issues, such as dividend payments, executive salaries, and environmental commitments, will remain a focus for the company and its stakeholders. The company's ability to balance these competing demands will be crucial in determining its future success.

Key points

• Sasol's debt reduction efforts have been successful, with a 11% reduction in debt to $3.3bn in the year ended June 2026.
• Executive salaries have increased significantly, with CEO Simon Baloyi receiving total remuneration of R42.8m in 2026.
• The company remains committed to its 2030 climate change ambitions, including procuring 2GW of renewable energy and reducing its scope 1 and 2 emissions by 30%.