8-KLeadership Changes

SEMPRA 8-K Report, Executive Changes (Nov 14, 2012)

Filed November 14, 2012For Securities:SRESREA

Summary

Sempra Energy (SRE) filed an 8-K on November 13, 2012, announcing a significant leadership transition. Donald E. Felsinger, currently Executive Chairman of the Board and a Director, will retire from these positions effective November 30, 2012. This follows a previously disclosed retirement plan from July 2011. Mr. Felsinger will remain available to consult with senior executives and the board post-retirement. Debra L. Reed, currently the CEO and a Director, will assume the additional role of Chairman of the Board, effective December 1, 2012. Ms. Reed brings extensive experience, having worked with Sempra and its subsidiaries for 34 years, including prior leadership roles at its California regulated utilities, San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company. The filing also details the post-retirement benefits and consultation arrangements for Mr. Felsinger, including continued insurance, charitable contribution matching, financial planning services, and security/IT support for a period of five years.

Key Highlights

  • 1Donald E. Felsinger, Executive Chairman and Director, will retire effective November 30, 2012.
  • 2Debra L. Reed, CEO and Director, will assume the role of Chairman of the Board effective December 1, 2012.
  • 3Ms. Reed has 34 years of experience with Sempra and its subsidiaries, including prior CEO roles at SDG&E and Southern California Gas.
  • 4Mr. Felsinger will provide consulting services to senior executives and the board post-retirement.
  • 5Sempra will provide Mr. Felsinger with benefits for five years post-retirement, including supplemental medical insurance and matching charitable contributions.
  • 6Post-retirement benefits for Mr. Felsinger are expected to cost approximately $365,000, excluding charitable contributions.
  • 7Mr. Felsinger will receive executive security specialist services and home computer support for five years.

Frequently Asked Questions

Debra L. Reed, the current CEO and a Director, will succeed Mr. Felsinger as Chairman of the Board, effective December 1, 2012. Mr. Felsinger will retire from these positions on November 30, 2012.

Mr. Felsinger has agreed to be available, as requested by the Company, to consult with senior executives and members of the board on an as-needed basis for a period following his retirement.

For five years following his retirement, Mr. Felsinger will receive supplemental medical insurance, excess personal liability coverage, dollar-for-dollar matching of charitable contributions up to $20,000 annually, and financial planning services (for two years after his death). He will also receive executive security specialist services and home computer support for five years.

The aggregate cost to the Company for these benefits (excluding the charitable contribution benefit) is expected to be approximately $365,000.