Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 74

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 74
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 Executive Officer on what compensation programs and goals he believes might be most appropriate given the company’s strategic direction. The committee considers this input in addition to input received from its independent compensation consultant in setting goals, pay levels and program design.

| 2025 Proxy Statement |     | 63 |

TABLE OF CONTENTS Executive Compensation

Managing Risk in Compensation Plans Managing Risk The Compensation and Talent Development Committee seeks to mitigate risk in our executive compensation program through the following policies and features: Risk Mitigation Features in our Incentive Plan Design and Performance Measure Selection Our 2024 performance-based annual bonus plan includes the following risk mitigation features:

| • | Limiting the payout at the maximum performance level to 200% of target |

| • | Using a company financial performance measure that is based on the earnings reported in our financial statements, with certain adjustments that are limited and predefined and the potential for others related to unplanned or unforeseen items, all of which are made only after thoughtful consideration by the Compensation and Talent Development Committee |

| • | Incorporating Safety Measures and Sustainability Measures, which are performance measures important to our business operations, in addition to the company financial performance measure |

| • | Providing the Compensation and Talent Development Committee with discretion over certain incentive plan payouts |

Our 2024 annual long-term incentive plan awards include the following risk mitigation features:

| • | Using a balanced mix of multiple types of awards and performance measures, consisting of a market-based performance measure (relative total shareholder return), a company financial performance measure (long-term EPS growth), a service-based measure (service-based restricted stock units) and stock options |

| • | Measuring our total shareholder return against the S&P 500 Index and the S&P 500 Utilities Index rather than against peer groups selected by the company, which reduces subjectivity in the determination of peer groups |

| • | Using multi-year performance periods to promote a longer-term performance horizon |

| • | Providing zero payouts for performance-based awards if performance is below the 25th percentile threshold level |

| • | Limiting the maximum payout level for performance-based restricted stock unit awards to 200% of the target number of units (including reinvested dividend equivalents) |

Clawback Policy Our clawback policy requires the recovery of certain (i) erroneously paid performance-based incentive compensation received by our executive officers on or after October 2, 2023, as required by new rules of the SEC and NYSE implemented pursuant to the Dodd-Frank Act, and (ii) incentive compensation received by the Chief Executive