Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 63

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 63
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ives The target values for the 2024 annual long-term incentive plan awards are summarized below in Table 14. In determining target award values for each named executive officer, the Compensation and Talent Development Committee took into account factors including competitive market data, each individual’s responsibilities and contributions, and the company’s retention objectives. The target values of 2024 LTIP awards also reflect the committee’s focus on delivering the most substantial portion of pay in the form of long-term, performance-based incentives. The committee feels it is important that the Chief Executive Officer is highly aligned with shareholder value creation through meaningful and competitive performance-based equity awards. Specifically, for Mr. Martin’s long-term incentive plan awards, which were granted in January 2024, the committee considered the following factors:

| • | Recognition of the outstanding shareholder value achieved in 2023; |

| • | A desire to denominate the vast majority of Mr. Martin’s compensation in performance-based equity pay that is multi-year in nature and aligned with shareholder value creation; |

| • | Providing compensation opportunity aligned with Sempra’s size and performance relative to the labor market data considered; and |

| • | An overall assessment of Mr. Martin’s execution of the company’s strategic plan. |

The ultimate value of long-term equity-based incentives depends on (i) for stock options, the absolute growth of the stock, (ii) for TSR-based performance-based restricted stock units, the relative growth of the stock against both general industry and utility companies, and (iii) for EPS growth-based performance-based restricted stock units, whether the company’s adjusted EPS growth outperforms peers. No element of the program provides value if performance standards are not achieved or, in the case of stock options, our stock price does not increase from the closing price on the date of grant.

|                   |     | Target Value of 2024 
    Annual LTIP Award |
| Jeffrey W. Martin |     |          $12,725,000 |
| Karen L. Sedgwick |     |           $2,003,000 |
| Justin C. Bird    |     |           $1,918,000 |
| Diana L. Day      |     |             $816,000 |
| Trevor I. Mihalik |     |           $3,800,000 |

Table 14 The actual amounts realized by equity award recipients will depend on future stock price performance, common stock dividend payouts and our EPS performance and the degree to which the established performance measures are achieved. Given the sensitivity to performance