Investor watchdog groups criticize San Diego-based Sempra Energy for

New Orleans CityBusiness, Apr 11, 2005 by Staff

San Diego-based Sempra Energy, which has applied for federal approval to build several liquefied natural gas terminals in the Gulf of Mexico, is taking heat for holding its annual shareholder meeting in London.

Investor watchdog groups say the April 5 meeting was sited overseas in order to avoid questions from disgruntled shareholders.

Shareholders voted on several non-binding proposals opposed by Sempra's board, including one to hold board elections annually instead of staggered three-year terms and another asking the company to record stock options as an expense and link all stock options for senior executives to job performance. The proposals passed but the board isn't obligated to adopt them.

Sempra denied a request by shareholders to hold a second meeting in southern California. Shareholders were required to attend in person to speak at the London meeting.

Sempra officials deny the location was chosen to exclude shareholders. A company spokesman said the meeting took place in London to raise Sempra's profile with European investors and expose directors to its European operations.