What are the key executive leadership changes announced by Sempra Energy?

Sempra Energy announced that Mark A. Snell has been elected President, effective October 1, 2011, and Joseph A. Householder has been appointed Executive Vice President and Chief Financial Officer, also effective October 1, 2011. Neal E. Schmale, the current COO, will retire on November 1, 2011.

What new responsibilities will Mark A. Snell have as President?

As President, Mr. Snell will be responsible for overseeing the company's infrastructure, mergers and acquisitions, and businesses not subject to California utility regulation. These non-regulated businesses, including Sempra Generation, Sempra Pipelines & Storage, and Sempra LNG, will be consolidated into two new operating units, Sempra International and Sempra U.S. Gas & Power, reporting to him.

What compensation changes are associated with these executive appointments?

Mark A. Snell's annual salary will increase to $720,000, and he received performance-based restricted stock units valued at $1,080,000. Joseph A. Householder's annual salary will increase to $550,000, and he was granted restricted stock units valued at $825,000. Both grants have a performance period through September 12, 2015.

What are the key aspects of the updated severance pay agreements for Mr. Snell and Mr. Householder?

The severance pay agreements for both executives have been updated. They generally provide for increased lump-sum cash payments in the event of an 'involuntary termination,' with significantly enhanced benefits if such termination occurs on or within two years after a 'Change in Control.' The agreements also include provisions for consulting services, restrictive covenants, and a 'best pay' limitation to avoid excise taxes, but no excise tax gross-up.

SRE/SREA 8-K: Leadership Changes

Summary

Sempra Energy (SRE) filed an 8-K on September 15, 2011, reporting significant executive leadership changes. Mark A. Snell was elected President, effective October 1, 2011, succeeding Neal E. Schmale who will retire as COO and Director on November 1, 2011. Snell's new role will involve overseeing infrastructure, M&A, and non-California regulated businesses, which will be consolidated into new international and U.S. gas & power units. Concurrently, Joseph A. Householder was appointed Executive Vice President and Chief Financial Officer, effective October 1, 2011, succeeding Snell in this role. Householder was previously Senior Vice President and Controller. The filing also details amendments to Snell's severance pay agreement and a new severance agreement for Householder, outlining enhanced benefits, particularly in the event of termination following a change in control, and specifies terms for consulting services and restrictive covenants.

Key Highlights

1Mark A. Snell appointed President, effective October 1, 2011.
2Neal E. Schmale to retire as Chief Operating Officer and Director on November 1, 2011.
3Joseph A. Householder appointed Executive Vice President and Chief Financial Officer, effective October 1, 2011.
4Snell's responsibilities will include infrastructure, M&A, and non-regulated businesses, with organizational restructuring into Sempra International and Sempra U.S. Gas & Power.
5Snell's compensation includes a salary increase to $720,000 and a restricted stock unit award valued at $1,080,000.
6Householder's compensation includes a salary increase to $550,000 and a restricted stock unit award valued at $825,000.
7Amendments to executive severance agreements are detailed, with enhanced benefits for involuntary termination, especially post-change in control, and provisions for consulting services and restrictive covenants.

SEMPRA 8-K Report, Executive Changes (Sep 16, 2011)

Summary

Key Highlights

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