DAKTRONICS INC /SD/ 8-K

What Happened

• Daktronics (DAKT) filed an 8‑K reporting an Amended and Restated Termination Agreement with Bradley T. Wiemann, effective February 1, 2026. Wiemann, whose service as Interim President and CEO ended on that date, will serve as Executive Vice President — Advisor to the CEO on an at‑will basis through no later than September 5, 2026.
• In exchange for a general release of claims, Daktronics will accelerate and cash‑settle Retention RSUs granted March 5, 2025 (the RSU Settlement Payment), with the cash value based on the Nasdaq closing price on February 2, 2026, and will ensure the total equals at least $300,000 (the Transition Payment). That Transition Payment is payable in a single lump‑sum on the first regular payroll date after the Amended Agreement is executed.

Key Details

• Effective date: February 1, 2026; board authorized the Amended Agreement on February 16, 2026; 8‑K filed February 20, 2026.
• Minimum cash payout: $300,000 (collectively the RSU Settlement Payment plus any top‑up), paid lump‑sum, net of taxes and withholdings.
• Advisory Period: Feb 1–March 15, 2026. If terminated without Cause before March 15, 2026, or if he retires after the Advisory Period but before May 30, 2026, he receives 12 months of COBRA premium reimbursement. If he retires or is terminated without Cause between May 30, 2026 and the end of the Term (no later than Sept 5, 2026) and signs a confirming release, he gets 18 months of COBRA reimbursement and accelerated vesting of all unvested stock options and RSUs.
• Exclusions: Wiemann will not be eligible for the company’s annual incentive bonus, future equity awards, the Employee Retention and Protection Plan, or other severance beyond what’s in the Amended Agreement. Other material compensation terms (base salary and standard employee benefits) remain unchanged.

Why It Matters

• For investors, this clarifies leadership transition and retention costs: Daktronics is paying a one‑time cash Transition Payment (at least $300k) and may incur additional costs for COBRA reimbursements and accelerated equity vesting depending on timing of any termination or retirement through Sept 5, 2026.
• The arrangement keeps Wiemann available as an advisor during the CEO transition, aiding continuity, while limiting his future incentive and equity participation per the agreement.