Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 6

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 6
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 •Focus on growth and shareholder alignment                                                                                                                                                           |

| (1) | As used in this proxy statement, the term “long-term equity-based incentives” refers to the annual long-term incentive plan (LTIP) awards granted on January 2, 2024. |

| (2) | For purposes of long-term equity-based incentives, all references to the S&P 500 Utilities Index or our S&P 500 Utilities Index peers refer to the companies constituting the S&P 500 Utilities Index, excluding water companies. |

2024 Compensation Decisions and Outcomes Base Salary. The Compensation and Talent Development Committee annually reviews base salaries for executive officers. The committee takes into account factors such as market survey data, evaluation of each named executive officer’s responsibilities and contributions, retention considerations, and others, to help ensure base salaries remain competitive and appropriately account for any evolution or expansion of individuals’ roles. For additional information, see “Executive Compensation—Compensation Discussion and Analysis—Compensation Components—Base Salaries.” Performance-Based Annual Bonus. Our 2024 target earnings for annual bonus plan purposes (ABP Earnings) were $3,051 million, an increase of $267 million, or 10%, over our 2023 target ABP Earnings of $2,784 million. The $244 million range between the 2024 ABP Earnings target and maximum goals continues the trend of broadening this range, which was $223 million in 2023, $159 million in 2022, and $142 million in 2021. Our 2024 ABP Earnings were $3,158 million. In determining ABP Earnings for 2024, the Compensation and Talent Development Committee made certain predefined adjustments to earnings computed in conformity with generally accepted accounting principles in the United States of America (GAAP). See “Reconciliation of GAAP Earnings to ABP Earnings” on page 54and Appendix B to this proxy statement for additional information. Based on performance on ABP Earnings, and on the pre-defined employee and public safety measures (Safety Measures) and environmental, culture and governance measures (Sustainability Measures), 2024 annual bonuses were achieved at 143% of target. For more detail, see “Executive Compensation—Compensation Discussion and Analysis—Rigor of Incentive Targets.” Long-Term Equity-Based Incentives. Long-term equity-based incentives are the largest single component of the total 2024 target compensation package for each named executive officer. In accordance with our