Form 4: Sempra Executive Trevor I. Mihalik Reports Acquisition of Phantom Shares

EVP and Group President of Sempra, Trevor I. Mihalik, reports the acquisition of 3,309.93 phantom shares under the company's deferred compensation plan.

Summary

• Trevor I. Mihalik, an EVP and Group President at Sempra, filed a Form 4 to report changes in beneficial ownership.
• On May 28, 2024, Mihalik acquired 3,309.93 phantom shares of Sempra Common Stock under Sempra's deferred compensation plan.
• The acquisition price was $75.53 per phantom share, with a total acquisition cost of $250,000.
• Mihalik directly owns 57,635.05 phantom shares following the reported transaction.
• The phantom shares are payable in cash and can be transferred into an alternative investment account.
• The conversion rate for the derivative security is 1 for 1.
• The phantom shares are immediately exercisable and have no expiration date.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation, indicating stability and alignment of interests. It is neither overly positive nor negative.

Positives

• The acquisition of phantom shares indicates Mihalik's continued investment and alignment with Sempra's performance.
• The deferred compensation plan allows for flexibility, as the shares are payable in cash and can be transferred into an alternative investment account.

Future Outlook

There are no specific forward-looking statements in this document.

Industry Context

Executive compensation through deferred compensation plans and phantom shares is a common practice in publicly traded companies to align executive interests with shareholder value.

Comparison to Industry Standards

• Deferred compensation plans are a common component of executive compensation packages in the energy sector, often including phantom stock or stock options.
• Companies like NextEra Energy and Duke Energy also utilize similar compensation strategies to incentivize their executives.
• The specific terms and conditions of these plans, such as vesting schedules and payout methods, can vary significantly between companies.

Stakeholder Impact

• The acquisition of phantom shares aligns executive interests with shareholder value, potentially benefiting shareholders.
• The deferred compensation plan provides a component of executive compensation, impacting the executive's financial outlook.

Key Dates