Summary
Sempra Energy (SRE) filed an 8-K on June 26, 2012, to report a key executive appointment and a related severance agreement. Trevor Mihalik was appointed Controller and Chief Accounting Officer, effective July 14, 2012, succeeding Joseph A. Householder who will continue as Executive Vice President and CFO. Mr. Mihalik's compensation package includes a $325,000 annual salary, a $200,000 sign-on bonus, annual performance bonuses, long-term incentives, and relocation benefits. The filing also details a severance pay agreement for Mr. Mihalik, which is effective from his start date and has an initial three-year term with automatic extensions. The agreement outlines substantial severance benefits, including cash payments, continued health insurance, outplacement, and financial planning services, particularly in the event of an involuntary termination or a termination following a Change in Control. Notably, the severance package includes provisions for potential excise tax limitations and a "best pay" limitation.
Key Highlights
- 1Appointment of Trevor Mihalik as Controller and Chief Accounting Officer, effective July 14, 2012.
- 2Joseph A. Householder will cease serving as Chief Accounting Officer but will remain Executive Vice President and CFO.
- 3Mr. Mihalik's compensation includes an annual salary of $325,000, a $200,000 sign-on bonus, target annual bonus of 50% of salary, and long-term incentive awards.
- 4A severance pay agreement was approved for Mr. Mihalik, outlining benefits in case of involuntary termination or resignation for "good reason."
- 5Severance benefits are enhanced if termination occurs on or within two years after a "Change in Control."
- 6The severance agreement includes provisions for cash payments, health benefits continuation, outplacement services, and financial planning.
- 7The agreement features a "best pay" limitation to manage potential excise taxes on severance payments.