Daktronics Inc. Announces 2027 Executive Compensation Program

What Happened

• Daktronics, Inc. announced on July 14, 2026 that its Board approved the 2027 Compensation Program for its named executive officers (Covered NEOs). The filing was submitted on Form 8-K on July 17, 2026.
• Covered NEOs named: Ramesh Jayaraman (President & CEO), Sheila M. Anderson (Chief Data & Analytics Officer), Matthew J. Kurtenbach (VP of Manufacturing) and Brett D. Wendler (VP of Design & Development). The program does not apply to Acting CFO Howard I. Atkins or EVP Bradley T. Wiemann, whose pay is covered by separate arrangements.

Key Details

• 2027 Annual Incentive: Cash bonuses based on two measures — operating income (60%) and revenue (40%). Payouts range from 50% of target (threshold) to 150% of target (maximum); no payout below threshold. Individual performance modifier can adjust payout ±20%.
  • Annual incentive target (% of base salary): Jayaraman 100%; Anderson 55%; Kurtenbach 55%; Wendler 50%.
• 2027 Long-Term Incentive: Target awards (as % of base salary) — Jayaraman 200%; Anderson, Kurtenbach, Wendler 60% each.
  • 65% of LTI by value granted as time‑based RSUs (vest pro‑rata over 4 years); 35% as PSUs tied to cumulative operating income (60%) and cumulative revenue (40%) for fiscal 2027–2029.
  • PSU payouts: threshold 25% of target, maximum 150% of target; earned PSUs cliff vest at year 3 after grant subject to continued service and Compensation Committee certification.

Why It Matters

• The program ties significant portions of executive pay to operating income and revenue, both annually and over a three‑year performance period, aligning management incentives with company financial performance.
• Material features for investors: meaningful CEO long‑term incentive opportunity (200% of salary), equity‑based awards (RSUs/PSUs) that may lead to future share‑based compensation expense and potential share issuance, and an individual performance modifier that can change payouts by up to 20%.
• Investors should note the specific targets and payout ranges as they can affect executive motivation and future reported compensation expense; the filing contains the detailed structure but does not disclose dollar award amounts.