Daktronics Announces Executive Changes and New Severance Plan

Daktronics Inc. (NASDAQ:DAKT), a leader in electronic display manufacturing with annual revenue of $820.6 million, announced significant leadership changes and the implementation of a new employee retention plan, according to a recent SEC filing. The announcement comes as the company’s stock has declined 22.8% in the past week, though InvestingPro data shows the company maintains a "GREAT" financial health score of 3.05 out of 4.

On March 3, the company’s Board of Directors determined that Reece Kurtenbach will step down as President and Chief Executive Officer, effective today. Kurtenbach will continue to provide advisory services to support Daktronics’ digital transformation plan. Following his departure, he will resign from the Board upon the appointment of a new CEO. Andrew Siegel, previously the Lead Independent (LON:IOG) Director, has been appointed as the independent Chair of the Board, resulting in the elimination of the Lead Independent Director role.

The company has entered into a Separation Agreement with Kurtenbach, which includes a $1.8 million severance payment, additional cash payments equivalent to COBRA health plan costs for 24 months, and partial acceleration of his unvested stock option and restricted stock unit awards. Kurtenbach has also signed a Consulting Agreement to assist with business object modeling until October 31.

Brad Wiemann has been named interim President and CEO, assuming the role of the principal executive officer. Wiemann, who has been with Daktronics since 1993, will receive a monthly compensation of $60,000 and a one-time grant of Restricted Stock Units worth approximately $300,000.

Howard Atkins has been appointed Acting CFO and Chief Transformation Officer, succeeding Sheila Anderson, who will focus on her roles as principal accounting officer and Chief Data and Analytics Officer. Atkins will receive a monthly compensation of $75,000, a signing bonus of $225,000, and a one-time grant of RSUs valued at approximately $150,000.

To encourage executive retention during the transition, the Board approved a Retention RSU Agreement and grants to certain executives. One-third of the RSUs will vest on each anniversary of the Vesting Commencement Date, provided the executive remains employed by the company.

Additionally, the Board adopted the Daktronics, Inc. Employee Retention and Protection Plan, offering severance protections to participants. The plan provides severance payments and benefits, COBRA Benefit, and pro-rata acceleration of vesting of Incentive Plan awards upon certain terminations.

These leadership and compensation changes aim to ensure a smooth transition and maintain the company’s strategic focus. The company enters this transition period from a position of financial strength, with a healthy current ratio of 2.35 and positive earnings of $0.63 per share. The information is based on a recent SEC filing by Daktronics.For investors seeking deeper insights into Daktronics’ transition period, InvestingPro offers comprehensive analysis with 10+ additional ProTips and detailed metrics, including exclusive Fair Value calculations and growth projections. Access the full Pro Research Report, part of InvestingPro’s coverage of 1,400+ US stocks, for expert analysis on what matters most for DAKT’s future performance.

In other recent news, Daktronics Inc. reported disappointing financial results for the third quarter of fiscal year 2025, missing both earnings and revenue forecasts. The company posted an earnings per share loss of $0.36, significantly below the expected profit of $0.075 per share. Revenue was reported at $149.51 million, falling short of the $171 million forecast. These results reflect a 12.2% year-over-year decline in net sales, with orders decreasing by 2.7% in the same period. Despite these challenges, Daktronics maintained a steady gross profit margin of 24.6%. The company is implementing a business transformation program aiming for $18 million in cost savings by FY2028. Daktronics remains optimistic about future growth, targeting a 7-9% compounded annual revenue growth and a 17-20% return on invested capital by FY2028. The company is also exploring digital transformation initiatives and merger and acquisition opportunities to drive long-term growth.

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