Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 62

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 62
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 Talent Development Committee sought a direct link to long-term performance in comparison to indices and peers. To achieve this result, the committee used performance-based restricted stock units based on relative total shareholder return over a three-year performance period (constituting one-third of the target grant date award value, allocated 70% to performance relative to the S&P 500 Utilities Index and 30% to performance relative to the S&P 500 Index). The link between pay and long-term earnings performance is further strengthened by the use of a second performance measure based on relative long-term EPS growth over a three-year performance period (constituting one-third of the target grant date award value). Stock options (weighted at one-third of the target grant date award value for Messrs. Martin, Mihalik and Bird and Ms. Sedgwick) also are aligned with the company’s strategic focus on long-term growth, and service-based restricted stock units (weighted at one-third for Ms. Day) promote retention. Figure 7

| (1) | Stock options were awarded to the chief executive officer and executive vice presidents. Other participants, including Ms. Day, received service-based restricted stock units in lieu of stock options. |

| 2025 Proxy Statement |     | 55 |

TABLE OF CONTENTS Executive Compensation

Determining Individual Equity Award Grants In granting the 2024 awards, the Compensation and Talent Development Committee:

| • | Specified a target dollar value and other terms for each named executive officer’s award; and |

| • | Calculated the number of shares underlying the awards using the specified target dollar value for each named executive officer, as opposed to using a fixed number of shares. |

This approach allows maintenance of a pay mix the committee believes to be optimal. On the grant date, we calculated the precise number of shares underlying the award to be granted to each named executive officer by dividing the target dollar value of each named executive officer’s award by the grant date closing price of Sempra common stock for the performance-based and service-based restricted stock units and by the Black-Scholes value for nonqualified stock options. These target grant values are presented in Table 14 below and differ from the values reported in “Compensation Tables—Summary Compensation Table” and “Compensation Tables—Grants of Plan-Based Awards” with respect to awards based on relative total shareholder return, which are reported in those compensation tables based on a Monte Carlo valuation that is used to calculate the grant date fair value. Target Value of Long-Term Equity-Based Incent