Form 4: Sempra CEO Jeffrey Martin Reports Acquisition of Phantom Shares

Sempra CEO Jeffrey Martin reports the acquisition of 4,925.46 phantom shares under the company's deferred compensation plan.

Summary

• On May 23, 2024, Jeffrey W. Martin, Chairman, CEO, and President of Sempra, acquired 4,925.46 phantom shares of Sempra common stock.
• The acquisition was made under Sempra's deferred compensation plan at a price of $76.13 per phantom share.
• The total acquisition cost was $375,000.
• Following the transaction, Martin directly owns 163,668.15 derivative securities.
• The phantom shares are payable in cash and can be transferred into an alternative investment account.
• The derivative security conversion rate is 1 for 1.
• The phantom shares are immediately exercisable and have no expiration date.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of phantom shares by the CEO suggests confidence in the company's performance, but it's a routine transaction under a deferred compensation plan.

Positives

• The acquisition of phantom shares by the CEO demonstrates confidence in the company's future performance.
• The deferred compensation plan incentivizes long-term value creation for shareholders.

Industry Context

Executive compensation packages often include phantom shares to align management's interests with those of shareholders. This is a common practice in publicly traded companies to incentivize long-term performance.

Comparison to Industry Standards

• Phantom stock plans are a common form of executive compensation, used by companies like NextEra Energy (NEE) and Duke Energy (DUK) to incentivize performance.
• The structure of Sempra's plan, allowing for cash payout or transfer to an alternative investment account, is similar to those offered by other large utilities.

Stakeholder Impact

• The acquisition of phantom shares aligns the CEO's interests with those of shareholders, potentially driving long-term value creation.
• The deferred compensation plan may impact employee morale positively, as it provides an additional incentive for executives.

Key Dates