Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 70

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 70
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 on the executive’s:                                                                                                                                                                                                                                                        
 •Final average pay(1)                                                                                                                                                                                                                                                                                                                                                                                           
 •Actual years of service                                                                                                                                                                                                                                                                                                                                                                                        
 •Age at retirement                                                                                                                                                                                                                                                                                                                                                                                              
 SERP benefits are reduced by benefits payable under the broad-based Cash Balance Plan.                                                                                                                                                                                                                                                                                                                          |     |                                                                                                                |

Table 20

| (1) | Final average pay is the average base salary for the two consecutive years of highest base salary prior to retirement plus the average of the three highest annual bonuses during the 10 years prior to retirement. |

Severance and Change in Control Arrangements None of our executive officers has an employment agreement, but our named executive officers have severance pay agreements that include change-in-control features. Rationale for Providing Severance Pay Agreements The Compensation and Talent Development Committee believes severance pay agreements, which are a prevalent market practice, are effective in:

| • | Attracting executives who are leaving an existing employer |

| • | Mitigating legal issues upon an employment separation |

| • | Retaining talent during uncertain times |

By mitigating the risks associated with potential job loss, severance pay agreements can reinforce management continuity, objectivity and focus on shareholder value. This can be particularly critical in actual or potential change in control situations. Severance Pay Agreement Benefits The severance pay agreements provide for cash payments and the continuation of certain other benefits for a limited period when:

| • | The company terminates an executive’s employment for reasons other than cause, or |

| • | The executive resigns for “good reason” |

Payments are not required under the terms of the severance pay agreements when:

| • | A termination is for cause, or |

| • | The executive voluntarily resigns other than for “good reason” |

A termination other than for cause generally excludes terminations based on willful and continued failure by the executive to perform his or her duties for the company. These provisions are intended to provide for benefits upon the company’s unilateral decision to terminate employment for reasons unrelated to the executive’s performance of his or her job functions. A resignation for “good reason” may occur if there is an adverse change in scope of duties or in compensation and benefit opportunities and, following a change in control, changes in employment location. These provisions are intended to provide safeguards against arbitrary actions that may effectively force an executive to resign. The agreements provide for additional benefits if the termination of employment were to occur within two years following (or such termination was deemed to have occurred, in cases of certain