Form 4: Sempra Director Kevin C. Sagara Reports Acquisition of Phantom Shares

Director Kevin C. Sagara reports acquiring phantom shares of Sempra Common Stock as part of director compensation.

Summary

• Kevin C. Sagara, a director of Sempra, filed a Form 4 on April 2, 2025, reporting a transaction that occurred on April 1, 2025.
• The transaction involved the acquisition of 209.61 phantom shares of Sempra Common Stock as director compensation at a price of $71.56 per share.
• Following the reported transaction, Sagara beneficially owns 3,547.93 phantom shares, including 1,994.02 unvested restricted phantom shares.

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 shareholders, but it's not a major event.

Positives

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

Risks

• The unvested phantom shares are subject to forfeiture if the director's service terminates prior to vesting under certain conditions, which could impact the director's motivation.

Industry Context

This filing is a routine disclosure related to director compensation, which is a common practice in publicly traded companies. The use of phantom shares is a way to provide equity-based compensation without diluting existing shareholders.

Comparison to Industry Standards

• Director compensation packages, including phantom shares, are common among S&P 500 companies.
• Companies like NextEra Energy (NEE) and Duke Energy (DUK) also utilize equity-based compensation for their directors.
• The vesting schedules and forfeiture conditions are generally aligned with industry best practices to ensure director commitment and performance.

Stakeholder Impact

• The acquisition of phantom shares has a minimal direct impact on shareholders, employees, customers, suppliers, and creditors.
• It primarily affects the director's compensation and alignment with shareholder interests.

Key Dates

Keywords

Sempra, Director Compensation, Phantom Shares, Form 4, Beneficial Ownership, Sagara, Acquisition