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Elissa Shane

Chief Operating Officer at TOMI Environmental Solutions
Executive
Board

About Elissa Shane

Elissa J. Shane, 45, is Chief Operating Officer (COO) of TOMI Environmental Solutions (NASDAQ: TOMZ) since January 1, 2018 and has served on TOMI’s Board as a Class I director since July 2021; she holds a B.A. in Psychology and Communications with a minor in Economics from USC (2001) . She is the daughter of CEO and Chairman Dr. Halden S. Shane, which raises independence considerations in governance; she is an employee director rather than independent . Company performance context: TOMI’s TSR-based value of an initial $100 investment was $11.34 (2022), $23.38 (2023), $24.31 (2024), while GAAP net losses were $(2,880,060), $(3,402,592), $(4,476,762), respectively . Most recent annual revenues and EBITDA for 2022–2024 are shown below (values marked with asterisk are from S&P Global).

Past Roles

OrganizationRoleYearsStrategic Impact
TOMI Environmental SolutionsChief Operating OfficerJan 2018 – PresentOperations leadership; oversees company execution
TOMI Environmental SolutionsChief Regulatory & Compliance OfficerSep 2015 – Dec 2017Regulatory/compliance oversight
TOMI Environmental SolutionsCorporate Secretary2016Corporate governance administration
Levi Lubarsky Feigenbaum & Weiss LLPParalegalJan 2014 – Sep 2015Directed litigation cycle operations from inception through appeal
Olshan Frome Wolosky LLPParalegalSep 2009 – Jan 2014Managed regulatory/compliance issues and litigation procedures

External Roles

No external public-company directorships or external roles are disclosed for Ms. Shane in TOMI’s proxy and recent 8-K filings .

Fixed Compensation

MetricFY 2023FY 2024
Base Salary ($)326,700 269,528 (reduced by 30% from Jun 1–Dec 31, 2024 per cost-saving measures)
Bonus ($)
All Other Compensation ($)12,000 (auto allowance) 12,000 (auto allowance)
  • June 6, 2024: Board approved temporary cash salary reductions to achieve profitability—Ms. Shane’s salary reduced by 30% for Jun 1–Dec 31, 2024 .

Performance Compensation

Award TypeGrant YearShares/UnitsExercise PriceGrant Date Fair Value ($)VestingNotes
Stock Option202350,000$0.8537,817 10-year term; vestedAnnual option under employment agreement
Stock Option202450,000$0.7532,068 10-year term; vestedAnnual option under employment agreement
  • Bonus/incentive metrics: Her employment agreement provides eligibility for an annual cash bonus and incentive compensation; no specific performance metrics, weightings, or targets are disclosed .
  • Equity structure: Service-vested stock options; no disclosed PSU/TSR metric programs for NEOs .

Equity Ownership & Alignment

HolderTotal Beneficial Ownership (Shares)% of Common StockDirect/Common SharesOptions/Warrants Exercisable within 60 days
Elissa J. Shane493,914 2.4% 267,664 226,250
  • Pledging/Hedging: Company insider trading policy prohibits hedging or monetization transactions involving TOMI securities; no pledging is disclosed .
  • Ownership guidelines: None disclosed for executives/directors in the proxy .

Outstanding Equity Awards (as of Dec 31, 2024)

SecurityStatusExercise Price ($)Expiration
Option (2016 Plan) – 12,500Vested0.961/15/2025
Option (2016 Plan) – 18,750Vested0.801/15/2025
Warrant – 6,250Vested4.004/24/2030
Option (2016 Plan) – 31,250Vested7.0610/1/2025
Option – 57,500Vested1.121/18/2032
Option – 50,000Vested0.851/26/2033
Option – 50,000Vested0.755/15/2034
  • Note: Several grants had 2025 expirations (Jan 15, Oct 1), creating time-bound exercise decisions earlier in 2025 .

Employment Terms

TermDetails
Agreement Date/EffectiveEmployment agreement dated Oct 1, 2020 (effective Oct 1, 2020)
Base SalaryAt least $270,000; subject to annual review/increase by Compensation Committee
Bonus EligibilityEligible for annual cash bonus and other annual incentives
Initial EquityOriginally 93,750 warrants at $6.17 (10/1/2020); amended to 31,250 options at $7.06; warrants canceled
Vehicle Allowance$1,000 per month
Benefits/VacationUp to 4 weeks paid vacation (accrues to 6), participation in group benefit plans
Term & RenewalInitial term three years; auto-renewal for successive one-year terms unless 120 days’ prior notice
Change-in-ControlLump sum of 1.5 years’ salary upon termination as COO as a result of a change in control (double trigger)
2024 Cost ActionsTemporary 30% salary reduction Jun 1–Dec 31, 2024

Board Governance

  • Board service: Class I director since July 2021; term expires at the 2027 annual meeting .
  • Committee roles: Ms. Shane is not listed as a member of the Audit, Compensation, or Nominating & Governance Committees; those committees are composed of independent directors (Fragasso, Lim, Paul) .
  • Independence: The Board affirmatively determined Messrs. Fragasso, Paul, and Dr. Lim are independent; Ms. Shane is management and is the CEO’s daughter, implying non-independence .
  • Attendance: All incumbent directors attended at least 100% of Board and applicable committee meetings in FY 2024 .
  • Board leadership: CEO also serves as Chairman; Board retains flexibility on combined roles; combined CEO/Chair is currently deemed appropriate (dual-role implication for oversight) .

Performance & Track Record

MetricFY 2022FY 2023FY 2024
Revenues ($)$8,338,099*$7,354,564*$7,738,842*
EBITDA ($)$(2,552,835)*$(2,982,600)*$(3,808,224)*
TSR – Value of $100 Investment ($)11.34 23.38 24.31
Net Income (Loss) ($)(2,880,060) (3,402,592) (4,476,762)
  • Values marked with an asterisk (*) retrieved from S&P Global.
  • Pay vs Performance disclosure indicates CAP for NEOs decreased as net losses increased; management cites short selling as a factor impacting TSR levels .

Risk Indicators & Red Flags

  • Related party: Ms. Shane is the CEO’s daughter; family relationship disclosed (governance independence concern) .
  • Dual role at top: CEO is also Chairman; potential concentration of power in leadership structure .
  • Section 16(a) compliance: One untimely Form 4 for Elissa J. Shane (Jan 8, 2024) relating to an option conversion .
  • Hedging policy: Prohibits hedging/monetization transactions; positive alignment signal .
  • Compensation discretion: No disclosed quantitative performance metrics linked to executive bonus payouts, indicating discretion .

Compensation Committee Analysis

  • Composition: Fragasso (Chair), Lim, Paul—all independent under Nasdaq/SEC rules .
  • Process: Oversees officer/director compensation plans/policies; met 2 times in FY 2024 .
  • Consultant conflicts: Not disclosed; Mr. Paul provides legal services to the company (advisory arrangement), considered in independence assessment .

Equity Compensation Plan Information

  • Equity plans: 2016 Equity Incentive Plan authorized 2,000,000 shares after 2020 amendment; total outstanding options/warrants: 1,964,000; weighted-average exercise price $2.26 .

Investment Implications

  • Alignment: Ms. Shane holds 2.4% of common stock beneficially with a meaningful portion in vested options/warrants (226,250 exercisable within 60 days as of Sept 15, 2025), aligning incentives but also introducing potential exercise-driven trading around expirations .
  • Retention/CoC: Double-trigger change-in-control severance of 1.5x salary is modest vs typical small-cap CEO levels, balancing retention with shareholder protections; annual options provide ongoing equity exposure .
  • Governance risk: Family relationship with the CEO and combined CEO/Chair role imply stronger need for independent oversight; Ms. Shane does not sit on key committees, which mitigates some independence concerns at the committee level .
  • Pay-for-performance: Discretionary bonus eligibility without disclosed metrics and persistent net losses may challenge pay-performance narratives; the 2024 salary reduction is a positive cash preservation signal .
  • Trading signals: Multiple option expirations in 2025 (Jan/Oct) indicate periods of potential insider exercise activity earlier this year; hedging is prohibited, reducing misalignment risk .