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Linda Solheid

Director at TILE SHOP HOLDINGS
Board

About Linda Solheid

Independent director since July 2020; age 65 as of April 8, 2025. Former Chief Information Officer at Room & Board with deep IT, cybersecurity, and multi-channel retail systems expertise; B.A. Sociology (University of Minnesota) and M.S. in Software Design & Development (University of St. Thomas). Serves on Audit, Nominating & Corporate Governance, and Independent Transaction Committees; affirmatively determined independent under Nasdaq/SEC rules .

Past Roles

OrganizationRoleTenureCommittees/Impact
Room & Board (private retailer)Chief Information OfficerJan 2016–Dec 2019Created unified multi-channel customer experience; led data security/cyber risk teams
Room & BoardDirector of TechnologyJul 2007–Dec 2015Led enterprise retail systems
G&K Services (acquired by Cintas)Director, Enterprise Business ApplicationsApr 2005–Jul 2007Enterprise applications leadership
H.B. FullerDirector, Global Business ApplicationsDec 2003–Apr 2005Global IT applications leadership
CenterPoint EnergyDirector, Information TechnologyAug 2001–Dec 2003IT leadership in utilities
CIGNA Behavioral HealthCIO; Director of Business Systems; other rolesApr 1991–Aug 2001Enterprise systems leadership

External Roles

OrganizationRoleTenure
None disclosed (public company boards)
EducationB.A. Sociology (UMN); M.S. Software Design & Development (UST)

Board Governance

  • Committee memberships: Audit (member), Nominating & Corporate Governance (member), Independent Transaction Committee (member) .
  • Independence: Board determined Solheid independent under SEC/Nasdaq standards .
  • Attendance: Board met 11 times in 2024; each incumbent director attended at least 75% of Board and committee meetings; all directors attended the 2024 Annual Meeting .
  • Board structure: Chair is separate from CEO; Audit Committee oversees ESG disclosures and cybersecurity controls; Board/Audit receive quarterly CIO cybersecurity reports—a fit with Solheid’s CIO background .
  • Transaction Committee: In 2025 recommended the “going-dark” reverse/forward split and cash-out; members (including Solheid) received an additional $10,000 quarterly fee; GCP provided a fairness opinion on the $6.60 cash-out price .

Fixed Compensation

Component2024 Amount/Detail
Annual Director Retainer (cash)$100,000
Committee chair fees applicable?Not applicable to Solheid (not a chair)
Equity election (2024)15,133 restricted shares; grant-date fair value $105,326; risk of forfeiture lapses on June 3, 2025 (earlier of Annual Meeting or June 18, 2025)
Equity election (2023 reference)20,131 restricted shares; forfeiture risk lapsed June 13, 2024

Solheid elected to take director compensation fully in restricted stock in 2023 and 2024, increasing alignment with shareholders .

Performance Compensation

Directors receive time-based restricted stock; no director performance metrics are disclosed. Key executive performance metrics overseen by Compensation Committee (for pay-for-performance governance context):

Metric2024 Design2025 Design
Annual Cash Incentive – Further Adjusted EBITDAPayout scale: 90% (0%), 95% (50%), 100% (100%), 105% (125%), 110% (150%), 115% (175%). No payout as threshold not met .Partial payout begins at 95%; max 175% at 115% of target .
Equity – Performance RS (Adjusted ROCE targets)Tranches: 12% (2024), 14% (2025), 15% (2026). 2024 tranche did not vest; forfeitures occurred .Tranches: 10% (2025), 12% (2026), 14% (2027) .

Other Directorships & Interlocks

  • Other public company directorships: none disclosed for Solheid .
  • Compensation Committee interlocks: Committee members (Jacullo, Bonney, Glasser) had no interlocks or insider participation; Solheid is not on the Compensation Committee .

Expertise & Qualifications

  • IT/cybersecurity, enterprise systems, and multi-channel retail operations—explicitly cited in director biography (includes oversight of tech risk and mitigation strategies) .
  • Audit Committee mandates cover ESG disclosures, internal controls, risk oversight, and related-person transactions review—areas aligned with Solheid’s technical background .

Equity Ownership

ItemAmount
Total beneficial ownership (Apr 8, 2025)102,508 shares
Unvested restricted stock (vesting June 3, 2025)15,133 shares
Shares outstanding (Apr 8, 2025)44,729,924
Ownership % of outstanding~0.23% (102,508 / 44,729,924)
Director stock ownership guideline≥3× annual retainer; compliance by Feb 28, 2026; retain ≥50% of shares until compliant
Pledging policyPledging/margin accounts prohibited absent CFO pre‑approval; insider trading/10b5‑1 preclearance required

At the Dec 31, 2024 price of $6.93, Solheid’s 102,508 shares equate to ~$709k, appearing to exceed the 3× retainer ($300k) guideline as of that date .

Governance Assessment

  • Strengths:

    • Independence and multi‑committee engagement (Audit, Governance, Transaction) .
    • Strong alignment via full equity elections (restricted stock) in 2023–2024 .
    • Relevant CIO/technology risk background complements Audit Committee’s cybersecurity oversight .
    • Related-person transaction policy with Audit Committee approval threshold at $50,000; no related-person transactions disclosed beyond thresholds .
    • Attendance and engagement standards met (≥75% attendance; full attendance at 2024 Annual Meeting) .
    • Shareholder support context: 99% say‑on‑pay approval in 2024 (signals broad support for compensation governance) .
  • Watch items and potential conflicts:

    • “Going dark” transaction: directors/executives beneficially own ~36.9% and intend to vote for the reverse/forward split; transparency will decline post‑deregistration (OTC Pink risk), which may impact investor confidence .
    • Transaction Committee additional fee ($10,000 quarterly) for members, including Solheid; while independent, fees and insider voting power warrant scrutiny on process fairness; GCP’s fairness opinion supports the $6.60 price .
    • Post‑transaction reporting: Board states intention to provide audited annual and quarterly unaudited financials, but information access will be materially reduced vs. SEC reporting .
  • Insider trading/Section 16(a):

    • No delinquent Section 16 filings noted for Solheid; the only delinquent filings disclosed were by Fund 1 Investments (a shareholder) in 2024 .
  • Policies:

    • Clawback policy (SEC/Nasdaq-compliant) adopted in Feb 2023 for incentive-based compensation—good governance signal .

Overall, Solheid’s independence, committee load, and cybersecurity/IT expertise support board effectiveness. Equity-heavy director pay and observed ownership suggest alignment. The principal investor-confidence risk is TTSH’s planned deregistration/delisting; Solheid’s role on the independent Transaction Committee and the presence of a third‑party fairness opinion mitigate, but do not eliminate, perceived conflict concerns .