SEMPRA ENERGY (NYSE:SRE) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Sempra Energy Annual Incentive Plan
On February 22, 2018, Sempra Energy (the “Company”) adopted a new annual bonus plan known as the Sempra Energy Annual Incentive Plan (the “Plan”). The purpose of the Plan is to aid the Company in attracting, retaining, motivating and rewarding highly qualified employees for it and its subsidiaries by providing for a bonus program that will serve as an incentive to foster a culture of performance and ownership, promote employee accountability and to align the interests of such employees who participate in the Plan with the interests of the Company, its subsidiaries and the Company’s shareholders.
The Plan will be administered by the Compensation Committee of the Company’s Board of Directors, which shall be responsible for determining who is eligible to participate among the salaried employees of the Company and its subsidiaries, which shall include each “officer” as defined by Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended, of the Company unless the Compensation Committee expressly determines otherwise for a particular Performance Period; the target bonus opportunity (which is a percentage of a participant’s base salary or other amount as determined by the Compensation Committee) and maximum bonus opportunity (which is 200% of the target bonus opportunity) for each participant; the methodology to be used to calculate the bonus (which shall include one or more performance measures such as financial, strategic, individual and operational measures); and the amount of the bonus payable to each participant based on the satisfaction of the performance measures and such other criteria determined appropriate by the Compensation Committee in its sole discretion. The Compensation Committee in its sole discretion may increase or decrease the amount of a participant’s bonus as determined to the bonus formula, may establish, rescind, waive or amend conditions and terms of the payment of bonuses, including, but not limited to, the achievement of other performance measures, may take into account such other factors as it deems appropriate and may consider other contributions made by a participant. Except in the cases of death, disability and Retirement (without Cause), the payment of a bonus shall be conditioned on the participant being employed on the last day of the Performance Period, which requirement may be waived in the sole discretion of the Compensation Committee. Performance Period, Cause and Retirement have the meanings set forth in the Plan.
The Compensation Committee shall have the authority to establish other special awards or incentive compensation to participants under this Plan and nothing in the Plan prevents the Company from granting awards or bonuses or other compensation outside of the Plan.
About SEMPRA ENERGY (NYSE:SRE)
Sempra Energy is a holding company. The Company’s principal operating units are San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas); Sempra International, which includes Sempra South American Utilities and Sempra Mexico segments, and Sempra U.S. Gas & Power, which includes Sempra Renewables and Sempra Natural Gas segments. Sempra Mexico segment owns and operates a natural gas-fired power plant and interests in a wind generation facility in Baja California, Mexico; natural gas distribution systems in Mexicali, Chihuahua, and the La Laguna-Durango zone in north-central Mexico; natural gas pipelines between the United States border and Baja California, Mexico and Sonora, Mexico, and the Energia Costa Azul LNG regasification terminal located in Baja California, Mexico. Sempra Mexico also owns interests in a joint venture that operates several natural gas pipelines, and propane and ethane systems in Mexico.