Company: ELSE
Filing Date: 2025-03-19
Form Type: DEF 14A
Source: 0000897101-25-000161
Chunk: 17

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: DEF 14A
Chunk 17
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The following graph shows the relationship
of “compensation actually paid” to our principal executive officer in 2024, 2023, and 2022 to Electro-Sensors net income.

<div align='center'>13

DIRECTOR COMPENSATION</div>

Compensation Summary

The following table
summarizes information concerning the compensation awarded or paid to, or earned by, the Company’s non-employee directors
during 2024. Directors who are not employees of the Company received $4,000 per Board meeting. The Chairman of the Board of Directors
received $24,000 per year. The Audit Committee Chair, Compensation Committee Chair, and Nominating Committee Chair each received
$12,000 per year. Each other Audit Committee member, Compensation Committee member, and Nominating Committee member received $6,000
per year for their service on each committee. Non-employee members of the Business Development Committee each received $12,000
per year.

Directors may receive additional amounts
for special committee or other Board work as determined by the Board.

<div align='center'>Director Compensation Table</div>

| Director Name       | Fees earned 
  or paid in 
    cash ($) | Option 
 Awards 
 ($)(1) |  Total 
    ($) |
| Joseph A. Marino    |      74,000 |      0 | 74,000 |
| Scott A. Gabbard    |      56,000 | 36,572 | 92,572 |
| Jeffrey D. Peterson |      26,000 |      0 | 26,000 |
| Michael C. Zipoy    |      44,000 |      0 | 44,000 |

| (1) | At December 31, 2024, Messrs. Gabbard, Marino, Peterson, and Zipoy each had 25,000 shares in stock option grants outstanding.        
 Mr. Gabbard was granted options to purchase 25,000 shares in 2024. Messrs. Marino, Peterson, and Zipoy were granted options          
 to purchase 25,000 shares in 2023. The grants vested 20% upon the date of grant and will fully vest in four years. The option values 
 shown are the grant date fair value computed in accordance with FASB ASC Topic 718.                                                  |

The stock option grants were made at the discretion of the Board
of Directors.

<div align='center'>14

RATIFICATION OF