Form 4: Sempra Director Cynthia J. Warner Reports Acquisition of Phantom Shares

Director Cynthia J. Warner reports acquiring phantom shares of Sempra common stock as part of director compensation.

Summary

• On April 1, 2024, Cynthia J. Warner, a director of Sempra, acquired 389.05 phantom shares of Sempra common stock.
• The acquisition was part of director compensation.
• The price of the phantom shares was $71.36.
• Following the transaction, Warner directly owns 8,255.42 phantom shares.
• The phantom shares are convertible to common stock on a 1-for-1 basis and are immediately exercisable upon vesting.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The acquisition of phantom shares can be seen as a positive sign of alignment between the director and shareholder interests.

Positives

• The acquisition of phantom shares as director compensation aligns the director's interests with those of the shareholders.

Industry Context

Director compensation in the form of stock or phantom stock is a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Director compensation packages vary widely across industries and companies depending on factors such as company size, performance, and industry norms.
• Companies like NextEra Energy (NEE) and Duke Energy (DUK), which are comparable to Sempra in the utilities sector, also utilize stock-based compensation for their directors.
• The specific amount and type of equity compensation can be benchmarked against peer companies to ensure competitiveness and alignment with shareholder interests.

Stakeholder Impact

• The acquisition of phantom shares by a director can positively influence shareholder confidence by aligning management's interests with those of the shareholders.

Key Dates