Form 4: Sempra Director Acquires Phantom Shares

Michael N. Mears, a Director at Sempra, acquired phantom shares as part of his director compensation.

Summary

• Michael N. Mears, a Director at Sempra (SRE), acquired phantom shares on July 1, 2026.
• These phantom shares represent a right to receive Sempra Common Stock.
• The acquisition was made as part of his director compensation.
• The transaction involved 136.81 phantom shares.
• These shares are convertible on a 1-for-1 basis into Sempra Common Stock.
• The total value of the acquired phantom shares is $91.37 per share, totaling $22,565.86.
• The shares are exercisable immediately upon vesting.
• The filing also notes 1,498.77 unvested restricted phantom shares that are subject to forfeiture under certain conditions.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral, as it primarily reports on routine director compensation and does not provide new financial performance data or strategic shifts.

Positives

• Director compensation is being utilized to align management with shareholder interests through equity awards.
• The acquisition of phantom shares by a director indicates continued commitment and investment in the company's future.

Negatives

• A portion of the phantom shares (1,498.77) remain unvested and are subject to forfeiture, indicating potential future dilution or loss of compensation if certain conditions are not met.

Risks

• The unvested phantom shares are subject to forfeiture if the director's service terminates prior to vesting, except in cases of death, disability, or removal without cause.
• The value of the phantom shares is tied to the performance of Sempra's common stock, meaning their value can fluctuate.

Future Outlook

The filing does not contain specific forward-looking statements or guidance regarding future financial performance. It primarily details a transaction related to director compensation.

Industry Context

StockSavvy.ai notes that the use of phantom shares for director compensation is a common practice in the utility and energy sector, aiming to align executive interests with long-term shareholder value and company performance.

Related Party Transactions

• The acquisition of phantom shares by Director Michael N. Mears is a related party transaction, as it involves compensation to a company insider.

Stakeholder Impact

• Shareholders: The issuance of phantom shares represents a form of equity-based compensation, which can dilute existing share ownership over time if not managed effectively. However, it also aligns director interests with shareholder value.
• Employees: No direct impact on employees is indicated by this filing.
• Management: The filing confirms a standard compensation practice for directors.

Next Steps

• The vested phantom shares are immediately exercisable.
• The unvested phantom shares will vest according to the terms of the award, subject to continued service and other conditions.

Key Dates

Keywords

Sempra, SRE, Form 4, Director Compensation, Phantom Shares, Equity Award, Beneficial Ownership, SEC Filing