Form 4: Sempra Director James C. Yardley Acquires Phantom Shares as Compensation

Sempra director James C. Yardley acquired 143.46 phantom shares of common stock as part of director compensation.

Summary

• James C. Yardley, a director at Sempra, acquired 143.46 phantom shares of Sempra common stock.
• These phantom shares were received as part of director compensation.
• The conversion rate for the phantom shares is 1 for 1.
• The price of the phantom shares was $87.13.
• The total number of phantom shares beneficially owned by Yardley after the transaction is 36,929.24.
• This total includes 1,666.60 unvested restricted phantom shares that are subject to forfeiture under certain conditions.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally to slightly positive as it aligns director interests with company performance.

Positives

• The acquisition of phantom shares indicates continued director compensation and alignment with company performance.

Risks

• The 1,666.60 unvested phantom shares are subject to forfeiture if the director's service terminates before vesting, except in cases of death, disability, or removal without cause.

Industry Context

This is a standard SEC Form 4 filing, which is common for reporting changes in beneficial ownership by company insiders. It reflects routine compensation practices for board members.

Comparison to Industry Standards

• The use of phantom shares as part of director compensation is a common practice among publicly traded companies, particularly in the energy sector.
• Companies like NextEra Energy (NEE) and Duke Energy (DUK) also use similar equity-based compensation for their directors.
• The vesting schedules and forfeiture conditions are also typical for these types of awards, designed to align director interests with long-term company performance.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns director interests with company performance.

Key Dates

Keywords

Sempra, phantom shares, director compensation, James C. Yardley, Form 4, equity securities, beneficial ownership