Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 50

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 50
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ihalik |     |    $950,000 |     |            $ 950,000 |     |      $ 3,800,000 |     |         $ 5,700,000 |

Table 4 Target total direct compensation will differ from the total compensation figures shown in the 2024 Summary Compensation Table appearing under “Executive Compensation—Compensation Tables” below. Target total direct compensation is a measure of total compensation opportunity provided in a given year. The Compensation and Talent Development Committee reviews target total direct compensation in its annual market review because it allows pay comparisons to be made across multiple organizations that may have dissimilar pay programs and different performance outcomes. Conversely, total compensation figures shown in the 2024 Summary Compensation Table combine performance outcomes of cash programs with grant date values of equity awards and include items such as the incremental, actuarial change in value of pension programs. The latter can experience extreme annual volatility based on factors such as interest rates or participants achieving vesting milestones based on age or service. For these reasons, the Compensation and Talent Development Committee believes target total direct compensation provides for more consistent annual compensation comparisons. Pay-for-Performance Alignment The Compensation and Talent Development Committee believes that pay should be structured to align executive compensation with company performance and with the interests of our shareholders. As a result, our incentive plans are designed to deliver payouts that are aligned with company performance. Our LTIP awards measure TSR performance relative to companies in the S&P 500 Utilities Index and S&P 500 Index and the payout scale for our EPS growth-based LTIP awards is based on our adjusted EPS growth relative to our S&P 500 Utilities Index peers.

| 44 |     | 2025 Proxy Statement |

TABLE OF CONTENTS Executive Compensation

This is demonstrated by comparing the LTIP payouts for our TSR-based and EPS growth-based annual LTIP awards granted from 2013 through 2022. Although our LTIP design and weighting of award components varied over this 10-year period, our TSR-based and EPS growth-based annual LTIP awards, collectively comprised at least two-thirds of the total of each year’s annual LTIP grant date award value (with the remainder consisting of stock options or service-based restricted stock units, which are not reflected in the table below).

| ​Award Cycle     |     | Realized Payout |
| 2013-2016        |     | 38% of Target   |
| 2014-2017        |     | 40% of Target   |
| 201