Outgoing Sasol CEO David Constable
Sasol's search for CEO David Constable’s replacement has almost been concluded, chairperson Mandla Gantsho told shareholders at the company's annual general meeting in Johannesburg on Friday.
Sasol earlier this year announced that Constable had decided not to renew his contract when it expires in May next year. He has been at the helm of the company since 2011. He will, however, stay on as a consultant for the 2017 financial year after he and the company agreed on a special advisory services agreement.
Responding to a shareholder’s question about Constable’s imminent departure, Gantsho said when Constable informed the company of his intention to leave next year, Sasol activated its succession plan, hence the appointment of global executive search and leadership consulting firm Spencer & Stuart to conduct the search for a replacement.
Gantsho said the appointment could be made as early as February next year if the company goes for an internal candidate. Recruiting an external candidate would take longer, he said.
Asked if the company will appoint another expatriate “with a R50-million salary”, Gantsho was non-committal. He said the company would consider internal and external candidates, and that it will appoint the best candidate for the job. “We should act in the best interests of the company,” Gantsho said.
Constable’s package has been a thorny subject since he took over, with some shareholders suggesting it was excessive. A few months after joining the company, the Sasol board had to explain how Constable qualified for an R828 000 bonus after one month in office. Gantsho on Friday said the company believes its executives are remunerated for the value they add. Constable, a Canadian, is a former president of operations at Fluor Corporation.
Gantsho said Sasol has decided to retain Constable’s services for his role in the company’s major projects in the US. Sasol is currently pursuing growth opportunities in North America and southern Africa. Its mega projects include a world-scale petrochemicals complex in Louisiana, US. That $8-billionn project includes six chemical manufacturing plants and an ethane cracker plant that will produce 1.5-million tons of ethylene a year.
Sasol shares traded 0.85% down just after 14:00 at R387.78.