Company: ELSE
Filing Date: 2025-03-19
Form Type: DEF 14A
Source: 0000897101-25-000161
Chunk: 7

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: DEF 14A
Chunk 7
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 set forth below under “Director Compensation.”

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Audit Committee

Messrs. Marino, Gabbard
(Chair), and Zipoy currently serve as members of the Audit Committee. This Committee met twice during 2024. The Audit Committee
is responsible for selecting the Company’s independent registered public accounting firm, and for assisting the Board in
its oversight of corporate accounting and internal controls, reporting practices of the Company and the quality and integrity of
the financial reports of the Company. In addition to regularly scheduled Audit Committee meetings, the Audit Committee Chair meets
quarterly with the Company’s independent accounting firm to discuss their processes surrounding the Company’s quarterly
and full year results. The Audit Committee Charter specifies the Committee’s composition and responsibilities. For more information
concerning the Audit Committee, see the Report of the Audit Committee on page 19 and the Audit Committee Charter posted on our
corporate website under “Investor Information - Corporate Governance.” Given his significant experience serving as
a chief financial officer of companies, the Board has determined that Mr. Gabbard is an “audit committee financial expert”
as defined by Item 407(d)(5)(ii) of SEC Regulation S-K.

Compensation Committee

Messrs. Marino, Gabbard
(Chair), and Zipoy currently serve as members of the Compensation Committee. The Compensation Committee acts pursuant to a charter
and met twice during 2024. For more information concerning the Compensation Committee, see the Compensation Committee Charter posted
on our corporate website under “Investor Information - Corporate Governance.” The Compensation Committee is responsible
for making recommendations to the Board concerning compensation of the Company’s employees, officers, and directors, and
is authorized to determine the compensation of the Company’s executive officers. The Compensation Committee is authorized
to administer the various incentive plans of the Company and has all powers of the attendant thereto, including the power to grant
stock compensation.

The Company’s
insider trading policy strongly discourages employees (including officers) and the Company’s Board members from engaging
in hedging, margin purchases, short sales, and buying or selling puts or calls with respect to the Company’s securities.
In addition, the policy requires that Company stock purchased in the open market must be held for a minimum of six months. The
Company’s Policy Statement on Confidential Information and Securities Trading by Electro-Sensors, Inc.
Personnel is included as Exhibit 19.1 to the Company’s Annual Report on Form 10-K for the