Form 4: Sempra Director James C. Yardley Reports Acquisition of Phantom Shares

Director James C. Yardley reports acquiring phantom shares of Sempra common stock as part of director compensation.

Summary

• James C. Yardley, a director of Sempra, reported acquiring 166.73 phantom shares of Sempra common stock on July 1, 2024.
• The acquisition is part of director compensation.
• The price per share is $74.97.
• Following the transaction, Yardley beneficially owns 36,076.75 shares, including 1,641.07 unvested restricted phantom shares.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard director compensation practices and alignment of interests. There are no indications of negative events or concerns.

Positives

• The acquisition of phantom shares indicates continued alignment of the director's interests with the company's performance.

Risks

• The unvested restricted phantom shares are subject to forfeiture if service as a director terminates prior to vesting for any reason other than death, disability or removal without cause.

Industry Context

Form 4 filings are standard practice and provide transparency into the transactions of company insiders, allowing investors to track ownership changes and potential alignment of interests.

Comparison to Industry Standards

• Director compensation packages often include equity-based awards like phantom shares to align director interests with shareholder value.
• Companies like NextEra Energy (NEE) and Duke Energy (DUK) also utilize equity-based compensation for their directors.

Stakeholder Impact

• The acquisition of phantom shares by a director can positively influence shareholder confidence by demonstrating alignment of interests.

Key Dates