Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 104

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 104
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 and Ms. Sedgwick. The Non-PEO NEOs for 2024 were Messrs. Bird and Mihalik and Mss. Day and Sedgwick. |

Certain CAP Relationships The relationships between the company’s TSR and the peer group TSR reported in the 2024 Pay-Versus-Performance table above, as well as between CAP and the company’s TSR, net income and ABP Earnings are shown below. As shown in these charts and as more fully described in the notes to the 2024 Pay-Versus-Performance table above and the Compensation Discussion and Analysis in this proxy statement, there is some alignment between CAP and the company’s TSR and ABP Earnings, as these are measures that have been selected by the Compensation and Talent Development Committee for use in various elements of our executive compensation program for purposes of aligning executive compensation with company performance. Importantly, because a majority of target total direct pay to our named executive officers is delivered in the form of long-term equity-based incentives (74% for our PEO and an average of 59% for our Non-PEO NEOs), the change in CAP over time is driven primarily by our stock price and our performance against the metrics that determine vesting of our performance-based restricted stock units, which significantly influence the fair value of Equity Awards as calculated for purposes of CAP and were the primary drivers of the decrease in CAP from 2022 to 2023 in spite of the slight increase in TSR and ABP Earnings over the same period. There is less alignment between CAP and the company’s net income because net income, which includes earnings attributable to noncontrolling interests and other amounts that are not indicative of the company’s performance, is not used in our executive compensation programs for this purpose.

| 86 |     | 2025 Proxy Statement |

TABLE OF CONTENTS Executive Compensation

Important Performance Measures As described in the Compensation Discussion and Analysis in this proxy statement, one of the key principles of our executive compensation philosophy is to align pay with short-term and long-term company performance. In our assessment, the most important performance measures used to link executive compensation actually paid to our named executive officers for the most recently completed fiscal year to the company’s performance are listed in the table below. This list includes Safety Measures and Sustainability Measures, which are non-financial performance measures.

| Performance Measure                      |     | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| ABP Earnings                             |     | See footnote (D) to the