38Related party transactions

Parties are considered to be related if one party directly or indirectly has the ability to control or jointly control the other party or exercise significant influence over the other party or is a member of the key management of the reporting entity (Sasol Limited). In particular, this relates to joint ventures and associates. Disclosure in respect of joint ventures and associates is provided in note 20.

Group companies, in the ordinary course of business, entered into various purchase and sale transactions with associates and joint ventures. The effect of these transactions is included in the financial performance and results of the group. Terms and conditions are determined on an arm’s length basis. Amounts owing (after eliminating intercompany balances) to related parties are disclosed in the respective notes to the financial statements for those statement of financial position items. No impairment of receivables related to the amount of outstanding balances is required.

Material related party transactions

The following table shows the material transactions that are included in the annual financial statements using the equity method for associates and joint ventures.

	2019	2018	2017
for the year ended 30 June	Rm	Rm	Rm

Sales and services rendered from subsidiaries to related parties
Joint ventures	1 474	965	1 088

Purchases by subsidiaries from related parties
Joint ventures	718	671	617
Associates	95	88	120

	813	759	737

Identity of related parties with whom material transactions have occurred

Except for the group’s interests in joint ventures and associates, there are no other related parties with whom material individual transactions have taken place.

Key management remuneration

Key management comprises of Executive and Non-executive Directors as well as other members of the Group Executive Committee (GEC)/Prescribed Officers.

Retirement

Other

Total

Salary

funding

benefits

2019

2018(1)

2017(1)

R’000

Executive Directors

32 194

4 540

10 214

46 948

66 808

77 333

(1)	Total remuneration for the financial year excludes gains derived from the long-term incentive schemes which are separately disclosed.

Gains on Long-term incentives and Share Appreciation Rights for the Executive Directors’ and former Executive Director were as follows:

		Share
	Long-term	appreciation
	incentive	rights, with
	rights	and without	Total	Total	Total
	vested(1)	CPTs exercised	2019	2018	2017
	R’000	R’000	R’000	R’000	R’000

Executive Directors	25 025	—	25 025	20 515	24 970

(1)	Long-term incentives for the 2019 financial year represent incentives approved on the group results for the 2019 financial year, payable in the 2020 financial year.

Remuneration and benefits paid and short-term incentives approved for the Prescribed Officers were as follows:

		Retirement	Other	Total	Total	Total
	Salary	funding	benefits	2019	2018(1)	2017(1)
	R’000	R’000	R’000	R’000	R’000	R’000

Prescribed Officers	49 335	6 373	11 780	67 488	89 007	70 949
Number of Prescribed Officers				8	8	7

(1)	Total remuneration for the financial year excludes gains derived from the long-term incentive schemes which are separately disclosed.

Gains on Long-term incentives and Share Appreciation Rights for the Prescribed Officers were as follows:

		Share
	Long-term	appreciation
	incentive	rights, with
	rights	and without	Total	Total	Total
	vested(1)	CPTs exercised	2019	2018	2017
	R’000	R’000	R’000	R’000	R’000

Prescribed Officers	19 628	48 931	68 559	44 962	23 807

(1)	Long-term incentives for the 2019 financial year represent incentives approved on the group results for the 2019 financial year, payable in the 2020 financial year.

The total IFRS2 charge for Executive Directors and the Prescribed Officers in 2019 amounted to R32 million and R20 million, respectively.

Non-executive Directors’ emoluments for the year was as follows:

Ad Hoc

Special

Board

Lead

Board —

meeting

Director

Committee

Total

fees

Meeting

2019

2018

2017

R’000

Non-executive Directors

24 498

387

7 372

198

32 455

27 823

23 079