Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 56

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 56
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 Pay Equity The Compensation and Talent Development Committee uses internal pay equity principles to determine the compensation for positions that are unique or difficult to compare to market data. Internal equity is also considered in establishing compensation for positions considered to be equivalent in responsibilities and importance, especially where precise external data is not available. Compensation Components Primary Components of Executive Compensation Program The primary components of our executive compensation program are:

| • | Base salaries |

| • | Performance-based annual bonuses |

| • | Long-term equity-based incentives |

Additional benefits include participation in savings and retirement plans and health and welfare programs, as well as personal benefits and severance pay agreements. All of our named executive officers generally participate in the same compensation program. However, compensation levels for named executive officers vary substantially based on the roles and responsibilities of the individual officers. 1. Base Salaries Our executive compensation program emphasizes performance-based pay. This includes annual cash bonuses and long-term equity-based incentives. However, base salaries remain a common and necessary element of compensation for attracting and retaining outstanding employees at all levels. The Compensation and Talent Development Committee annually reviews base salaries for executive officers. The committee considers the following factors, among others, in its annual review: The Compensation and Talent Development Committee also may review and adjust base salaries during the year (between annual reviews) for various reasons, including in the event of promotions or other job title changes, modifications to reporting relationships or job functions, or changes to any of the other factors described above or other circumstances considered relevant by the committee. 2024 Adjustments to Base Salaries Based on its review in consideration of the factors noted above, the Compensation and Talent Development Committee approved the following: Mr. Martin received an annual salary planning increase of 6.7% and Mss. Sedgwick and Day and Messrs. Bird and Mihalik, all of whom were promoted to or assumed new roles effective January 1, 2024, received increases 12.5%, 13.0%, 5.4% and 5.6%, respectively. 2. Performance-Based Annual Bonuses Performance Guidelines Each year the Compensation and Talent Development Committee establishes performance measures and dollar guidelines for performance-based cash bonus payments. The committee strives to select financial and operational performance measures that are linked to our business strategy and shareholder interests. Consistent with our pay-for-performance philosophy, the performance measures do not provide for any bonus payment unless the company meets the threshold (minimum) performance level for the year. Bonus opportunities increase from 40% of target for performance at the threshold