Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 46

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 46
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 our S&P 500 Utilities Index peers (with the threshold, target, and maximum payout for performance remaining the same).This construct measures our performance relative to the actual performance of the S&P 500 Utilities peers rather than expected peer performance based on forward analyst consensus estimates. |
| Compensation Peer Group                                                                                           |     | Labor market review consisted of two peer groups, a general industry peer group comprised of companies within a targeted revenue range and a utilities peer group comprised of the S&P 500 Utilities. The Fall 2022 labor market review, which informed 2023 compensation decisions and outcomes, included over 200 companies. |     | The Compensation and Talent Development Committee adopted a simpler, more transparent approach in its Fall 2023 labor market review that informed 2024 compensation outcomes. This approach used a single 28-company peer group composed of general industry, utilities industry and energy industry companies. For additional information, see “Labor Market Reviews” below.                                                                             |

Table 2

| 2025 Proxy Statement |     | 41 |

TABLE OF CONTENTS Executive Compensation

Our shareholders presently have the opportunity to cast an advisory vote on our executive compensation, or a “say-on-pay” vote, once every year at our annual shareholders meetings. Based on discussions with shareholders during our 2024-2025 shareholder engagement cycle and the 93% approval of our executive compensation in the most recent say-on-pay vote, the Compensation and Talent Development Committee believes this approval generally affirms our shareholders’ support for our approach to executive compensation and therefore did not significantly alter our policies or practices for 2024, except with respect to the shareholder-informed updates to certain specific elements of our compensation program described above. 2024 Compensation Program Overview Our executive compensation program is designed to attract, motivate and retain key executive talent and promote strong, sustainable long-term performance. The three components of total direct compensation delivered in our program are: (1) base salary; (2) performance-based annual bonus; and (3) long-term equity-based incentives. We place an emphasis on variable performance-based pay, with each component designed to promote value creation and alignment of our management team’s compensation with our long-term strategic objectives.

| Type          |     | Component         |     | Form                                                                                                                                                                                                                                         |     | Key Characteristics                                                                                                                                                    |
| Fixed         |     | Base Salary       |     | Cash                                                                                                                                                                                                                                         |     | •Base salary is targeted to generally align to the median of our compensation peer group, which includes comparably sized general industry, utilities and