Form 4: Sempra Director Jack T. Taylor Reports Acquisition of Phantom Shares

Director Jack T. Taylor reports acquiring phantom shares of Sempra common stock.

Summary

• On May 13, 2025, Jack T. Taylor, a director of Sempra, acquired 1,863.44 phantom shares of Sempra common stock.
• These shares are subject to forfeiture if Taylor's service as a director terminates before Sempra's 2026 Annual Shareholders Meeting, unless due to death, disability, or removal without cause.
• Following the transaction, Taylor beneficially owns 40,157.68 phantom shares, including 38,294.24 vested shares acquired as deferred compensation.
• Vested phantom shares and reinvested dividend equivalents are paid in cash after separation of service.

Sentiment

Score: 7

Explanation: Neutral sentiment as it's a routine disclosure of director compensation. The acquisition of phantom shares is a positive sign of alignment with company performance.

Positives

• The acquisition of phantom shares aligns the director's interests with the company's performance.
• Vested phantom shares provide deferred compensation for the director's service.

Risks

• The forfeiture clause on the newly acquired shares could incentivize short-term decision-making to ensure continued service until the 2026 meeting.

Future Outlook

The report does not contain specific forward-looking statements, but it implies continued director service until at least the 2026 Annual Shareholders Meeting.

Industry Context

Reporting of beneficial ownership changes by company insiders is standard practice and provides transparency to investors.

Comparison to Industry Standards

• Phantom stock grants are a common form of executive compensation, aligning director interests with shareholder value, similar to practices at companies like NextEra Energy and Duke Energy.
• The forfeiture provisions are typical to ensure continued service, comparable to vesting schedules in stock option plans at peer companies.

Stakeholder Impact

• The acquisition of phantom shares aligns the director's interests with shareholders, potentially leading to decisions that benefit shareholder value.

Key Dates

Keywords

Sempra, Director, Phantom Shares, Beneficial Ownership, Form 4, Deferred Compensation