Vernice L. Howard
About Vernice L. Howard
Vernice L. Howard is Chief Financial Officer of 1847 Holdings LLC (EFSH), serving since September 2021; she has 30+ years in finance and accounting, including CFO roles in private organizations, with an MBA in Finance (Trinity Washington University) and a BS in Accounting (Duquesne University) . As of the 2024 proxy record date, she was 53 years old; EFSH reported FY 2024 revenue of $15.7M (+10.7% YoY) and then delivered Q1 2025 revenue of $10.1M (+384% YoY), with reaffirmed 2025 guidance for >$45M revenue and ~$1.3M net income and 2026 guidance for >$60M revenue and ~$5.0M net income, framing the performance context during her tenure .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Independent Electrical Contractors, Inc. and affiliates | Chief Financial Officer | 11+ years (exact dates not disclosed) | Led finance, HR, facilities administration; set policies/strategies and oversaw assets |
| The Cronkite Ward Company (television production) | Chief Financial Officer | Not disclosed | Finance leadership in entertainment sector |
| Community Action Group (CAG), nonprofit | Director of Finance | Not disclosed | Finance leadership in nonprofit sector |
| Public accounting and forensic accounting focus | Tax/audit roles; forensic accounting emphasis | Not disclosed | Built foundational expertise across sectors |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Chief (DC-based vetted network for senior women leaders) | Founding member | Not disclosed | Executive leadership network membership |
Fixed Compensation
- Employment agreement (Sept 7, 2021): Base salary $300,000; eligible for annual incentive bonus up to 50% of base salary (earnings targets set by the board); at-will employment; eligible for standard benefits .
- Severance: If terminated without cause, six months of base compensation; employee resignation requires 90 days’ notice .
Multi-year cash compensation (reported):
| Metric | 2021 | 2022 | 2023 |
|---|---|---|---|
| Base Salary ($) | $85,419 | $300,000 | $300,000 |
| Target Bonus (% of salary) | 50% (eligibility set in 2021 agreement) | 50% | 50% |
| Actual Bonus Paid ($) | $0 | $0 | $0 |
| All Other Compensation ($) | $0 | $0 | $0 |
| Total ($) | $85,419 | $300,000 | $300,000 |
Performance Compensation
- Annual bonus plan: Up to 50% of salary based on “earnings targets” determined by the board; specific metric definitions, weightings, targets, and results are not disclosed in the proxy .
- Outstanding equity: No unexercised options, unvested stock, or equity incentive awards outstanding at FY 2023 year-end (and previously at FY 2021) .
Incentive design details:
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Earnings targets (board-determined; not itemized) | Not disclosed | Not disclosed | Not disclosed | $0 bonus for 2022 and 2023 | N/A (cash bonus) |
Equity plan context (company-level): The 2023 Equity Incentive Plan exists and was further amended (Dec 30, 2024) to increase the share reserve to 5,000,000, with administrator discretion to set performance criteria and to include change-in-control acceleration provisions in award agreements; future awards are at the committee’s discretion (no specific grants to Ms. Howard disclosed) .
Equity Ownership & Alignment
- No equity awards outstanding; ownership is de minimis and has varied with corporate actions and share count changes; no pledging disclosed .
Beneficial ownership (record dates as disclosed):
| Record Date | Shares Owned | Percent of Class | Shares Outstanding |
|---|---|---|---|
| 2023 (as of proxy record date) | 306 | <1% | 76,416,456 |
| 2024 (as of proxy record date) | 4 | <1% | 5,292,851 |
| 2025 (Special Meeting record date) | 1 | <1% | 25,400,386 |
Notes:
- For the 2025 Special Meeting, each common share holder also held an equal number of Series E preferred shares with 1,000,000 votes per share solely for voting on that meeting’s proposals (temporary super-voting instrument) .
Employment Terms
| Term | Detail |
|---|---|
| Start date/role | CFO since September 2021 |
| Term | At-will employment |
| Base salary | $300,000 |
| Target annual bonus | Up to 50% of base salary; earnings targets set by board |
| Severance | Six months of base salary if terminated without cause |
| Notice | Employee may resign on 90 days’ notice |
| Non-compete | One year post-termination during which she may not own/operate a competing business |
| Non-solicit | Two years post-termination (no solicitation of employees) |
| Equity/vesting | No outstanding options/RSUs at FY 2023 year-end |
| Clawback/COC | No specific executive clawback or change-of-control cash terms disclosed; plan-level equity agreements may include acceleration at administrator discretion |
Performance & Track Record (Company context during tenure)
FY performance:
| Metric | FY 2023 | FY 2024 | YoY |
|---|---|---|---|
| Revenue ($) | $14.2M | $15.7M | +10.7% |
| Gross Profit ($) | $6.6M | $7.8M | +18.6% |
| Gross Margin (%) | 46.2% | 49.5% | +330 bps |
Quarterly performance (Q1 YoY):
| Metric | Q1 2024 | Q1 2025 | YoY |
|---|---|---|---|
| Revenue ($) | $2.1M | $10.1M | +383.7% |
| Gross Profit ($) | $0.9M | $5.2M | +477.6% |
| Gross Margin (%) | 43.3% | 51.7% | +840 bps |
| Operating Loss ($) | $(3.2)M | $(0.10)M | +$3.07M |
| Net Loss from Continuing Ops ($) | $(10.6)M | $(0.23)M | +$10.4M |
Guidance and qualitative context:
- Reaffirmed 2025 guidance: revenue >$45M and net income of ~$1.3M; 2026: revenue >$60M and net income of ~$5.0M .
- Q1 2024 showed 15% YoY revenue growth to $14.9M (press release context) and strategic portfolio reshaping, though note the press release’s $14.9M reflects consolidated segment reporting and corporate actions during 2024; management highlighted divestiture and acquisition pipeline .
Compensation Structure Analysis
- Cash-heavy mix with limited at-risk equity: No outstanding options or unvested stock at FY 2023 year-end; bonuses have been discretionary and metric definitions are undisclosed; bonuses were $0 in 2022 and 2023, indicating realized pay remained largely fixed salary during that period .
- Pay-for-performance transparency is limited: “Earnings targets” are referenced but without published targets, weightings, or attainment disclosures, restricting external assessment of incentive rigor .
- Equity plan capacity expanded: The share reserve under the 2023 Equity Incentive Plan was increased to 5,000,000, enhancing the company’s flexibility to deliver equity-based incentives going forward (no specific award to Ms. Howard disclosed) .
Risk Indicators & Red Flags
- Alignment risk: De minimis share ownership (<1%) and absence of outstanding equity awards suggests limited direct equity alignment; no pledging disclosed .
- Retention risk: At-will employment with modest severance (6 months base) and restrictive covenants (1-year non-compete; 2-year non-solicit) provide protection to the company but do not constitute strong retention economics if external opportunities arise .
- Disclosure gaps: Lack of detailed performance metric disclosure for bonuses and no detailed change-of-control cash economics publicly disclosed for Ms. Howard .
Investment Implications
- Incentive alignment: The absence of outstanding equity awards and de minimis share ownership can weaken alignment and reduce incremental insider selling pressure from vesting events; however, it also limits upside sharing that typically supports long-term value creation behavior .
- Retention: At-will terms with six months’ severance and standard restrictive covenants imply moderate retention risk; future equity grants (enabled by the larger plan reserve) could improve retention and alignment if utilized for the CFO .
- Execution backdrop: Company-level revenue growth in FY 2024 (+10.7%) and a step-change in Q1 2025 performance, along with reaffirmed profitability guidance, provide a favorable operating context for finance leadership; continued disclosure of incentive metrics and potential equity participation would strengthen pay-for-performance credibility for investors .