Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 53

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 53
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 is below the 25 thpercentile of the relevant index (S&P 500 Utilities Index or S&P 500 Index), participants receive zero shares for that portion of the award. To achieve the maximum payout, performance must be at or above the 90 thpercentile of the relevant index (S&P 500 Utilities Index or S&P 500 Index). For the EPS growth portion of the annual LTIP award, no payout is made if our adjusted EPS CAGR is below the 25 thpercentile relative to the adjusted EPS CAGRs of our S&P 500 Utilities Index peers. To achieve maximum payout, performance must be at or above the 90 thpercentile relative to our S&P 500 Utilities Index peers. Actual payouts for performance-based restricted stock unit awards for the past ten completed award cycles ranged from 38% of target to 190% of target, with five cycles paying out below target and five cycles paying out above target.

| 46 |     | 2025 Proxy Statement |

TABLE OF CONTENTS Executive Compensation

Compensation Governance We believe our compensation practices, which are highlighted below, reflect our pay-for performance philosophy and program goals and our commitment to sound corporate governance:

| (1) | See “Severance and Change in Control Arrangements” for additional information. |

| (2) | Long-term incentive plan awards are granted from a shareholder-approved plan that prohibits stock option repricing and cash buyouts without shareholder approval. |

Compensation Philosophy and Program Goals Compensation Philosophy The Compensation and Talent Development Committee of our Board of Directors sets the company’s executive pay philosophy, which emphasizes four key areas: We believe this compensation philosophy enables us to attract, motivate and retain key executive talent and promote strong, sustainable long-term performance. Executive Compensation Program Goals Our executive compensation program goals include:

| • | Aligning executive compensation with shareholders’ interests |

| • | Linking executive compensation to both annual and long-term business and individual performance |

| • | Motivating executives to achieve superior performance |

| • | Attracting and retaining executives with outstanding ability and experience who demonstrate high standards of integrity and ethics |

| 2025 Proxy Statement |     | 47 |

TABLE OF CONTENTS Executive Compensation Labor Market Reviews Labor Market The Compensation and Talent Development Committee uses external pay data to help align executive compensation levels with the labor market. The committee views the labor market for our most senior positions as a nationwide, broad cross-section of companies in various industries, and the committee recognizes that this labor market varies by position.