Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 65

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 65
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0.25 |
| Below 25thPercentile                                    |     |                                     0.0 |

Table 15

| (1) | Participants also receive additional shares for dividend equivalents, which are reinvested to purchase additional units that become subject to the same vesting conditions as the restricted stock units to which the dividends relate. |

Note: If performance falls between the tiers shown in Table 15, the payout is calculated using linear interpolation. 2. EPS Growth The 2024 annual long-term incentive plan awards also included a performance-based restricted stock unit award linked to relative EPS growth. The award measures the CAGR of our adjusted EPS relative to the adjusted EPS CAGRs of the S&P 500 Utilities Index peers for the three-year period ending on December 31, 2026. The target payout level is based on performance at the 50 thpercentile of the peer group and the threshold and maximum payout levels are based on performance at the 25 thand 90 thpercentiles, respectively. The Compensation and Talent Development Committee uses adjusted EPS growth relative to our S&P 500 Utilities Index peers over a three-year period as a performance measure because:

| • | Our strategic goal is to deliver higher earnings growth than our utility peers while maintaining a commensurate risk profile |

| • | Our 2024 annual long-term incentive plan award design aligns with this strategic goal by measuring our adjusted EPS growth against our S&P 500 Utilities Index peers |

| • | The earnings growth in the financial plan is not linear from year to year due, in part, to our investment in large-scale, capital-intensive development projects that take multiple years to construct and multiple years for earnings to be generated |

If the company’s adjusted EPS CAGR is at the 50 thpercentile of the adjusted EPS CAGRs of our S&P 500 Utilities Index peers, participants will earn one share for each restricted stock unit. Participants have the opportunity to earn up to two shares for each restricted stock unit if performance exceeds the 50 thpercentile. Participants earn a partial share for performance between the 25 thand 50 thpercentiles and between one and two shares for performance between the 50 thand 90 thpercentiles, as shown below. No shares are earned for performance below the 25 thpercentile. The EPS CAGR excludes the impact of share repurchases not contemplated in our financial plans publicly communicated prior to the grant date of such awards.

| Percentile of Sempra’s Adjusted EPS CAGR