Matthew Kurtenbach
About Matthew Kurtenbach
Matthew J. Kurtenbach is Vice President of Manufacturing at Daktronics (DAKT), serving as an executive officer since 2006; he joined the company in 1992. He holds an M.S. in Industrial Management and a B.S. in Electrical Engineering from South Dakota State University, and has led lean manufacturing, supply chain, repair center operations, and global factory oversight (U.S., Shanghai, Ennistymon) . Age 56, he is part of the founding family cohort; his siblings include Reece A. Kurtenbach (former CEO) and Carla S. Gatzke (VP HR) . Company performance over the last three fiscal years shows TSR of 43.58 (2023), 93.14 (2024), and 35.20 (2025), with operating income of $21,288k (2023), $87,115k (2024), and $33,118k (2025), and net income of $6,802k (2023), $34,621k (2024), and $(10,121)k (2025) .
Company Performance (context)
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| TSR (Value of $100 investment) | 43.58 | 93.14 | 35.20 |
| Operating Income ($USD Thousands) | $21,288 | $87,115 | $33,118 |
| Net Income ($USD Thousands) | $6,802 | $34,621 | $(10,121) |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Daktronics | Department Manager, Manufacturing | 1992 | Early manufacturing leadership; process familiarity |
| Daktronics | Project Manager – Sports projects | — | Execution for sports segment implementations |
| Daktronics | Project Manager – Process improvements & facility expansions | — | Companywide process improvement; facilities scale-up |
| Daktronics | Responsible for all U.S. factory operations & facilities | 2001 | Operational oversight across U.S. factories |
| Daktronics | Vice President of Manufacturing | 2006–present | Led lean transformation; expanded to sourcing/supply chain; repair center operations; factories in Shanghai & Ennistymon |
External Roles
No external board or public-company roles disclosed in the DEF 14A biography reviewed for Matthew J. Kurtenbach .
Fixed Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Base Salary ($) | $287,115 | $296,115 | $311,692 |
| Target Bonus % of Salary | — | — | 65% (program design) |
| Actual Annual Bonus Paid ($) | $4,761 | $174,822 | $33,858 |
| All Other Compensation ($) | $8,613 (401(k) match) | $9,020 (401(k) match) | $10,350 (401(k) match) |
Notes:
- For FY2025, annual incentive maximum for Matthew was 120% of target; attainment was 19% of plan .
- The company does not provide pension arrangements or post-retirement health coverage; executives receive broad-based benefits like 401(k) match and ESPP access .
Performance Compensation
FY2025 Annual Incentive (Cash)
| Element | Details |
|---|---|
| Metric | Company-wide Operating Margin |
| Weighting | 100% (single company-wide measure) |
| Attainment | 19% |
| Target Opportunity | 65% of base salary (Matthew) |
| Payout ($) | $33,858 (actual) |
| Vesting | N/A (cash) |
FY2026 Annual Incentive (Program)
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Revenue (FY2026) | 30% | 55% of salary target opportunity (Matthew) | Not yet disclosed | Not yet disclosed | N/A |
| Operating Margin (FY2026) | 50% | 55% of salary target opportunity (Matthew) | Not yet disclosed | Not yet disclosed | N/A |
| Individual Objectives | 20% | 55% of salary target opportunity (Matthew) | Not yet disclosed | Not yet disclosed | N/A |
FY2025 Equity Awards (Retention + Annual Grants)
| Grant Date | Type | Units/Strike | Fair Value | Vesting Schedule |
|---|---|---|---|---|
| 9/9/2024 | RSU | 2,270 units | $25,000 | 20% annually starting 1 year after grant |
| 3/5/2025 | Retention RSU | 13,817 units | $198,000 | 20% annually starting 1 year after grant |
| Various | Stock Options | No FY2025 options granted to Matthew | — | Options (when granted) vest 20% annually over 5 years; 10-year term |
No off-cycle grants timed around MNPI; the company did not grant equity awards during blackout windows in FY2025 .
FY2026 Long-Term Incentive Awards (Introduced PSUs)
| Grant Date | Instrument | Grant Value (Matthew) | Performance Metrics | Performance Period | Vesting |
|---|---|---|---|---|---|
| 7/28/2025 | RSUs | $131,250 | Time-based | FY2026–FY2029 | Pro rata over 4 years |
| 7/28/2025 | PSUs | $43,750 | Profit growth 60%; Revenue growth 40% | FY2026–FY2028 | Cliff vest at 3 years; earned 25%–150% of target |
| FY2026 Plan Design | Mix | Target LTI value = 50% of base; 25% PSUs / 75% RSUs | — | — | — |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 311,661 shares (as of record date 7/16/2025) |
| % of Shares Outstanding | ~0.63% (311,661 / 49,120,799) |
| Unvested RSUs | 20,071 units; $252,092 market value (at $12.56 on 4/25/2025) |
| Options Outstanding (Unexercisable) | 2,500 @ $4.11 exp 9/03/2030; 2,500 @ $5.66 exp 9/02/2031; 6,750 @ $3.02 exp 9/08/2032; 1,829 @ $9.85 exp 9/11/2033 |
| FY2025 Option Exercises | 48,957 shares; $310,716 value realized |
| FY2025 Stock Vested | 2,246 shares; $35,577 value realized |
| Pledging/Hedging | Hedging, short sales, and derivative transactions prohibited by Stock Trading Policy ; Restricted Stock may not be transferred or pledged during the restriction period |
| Ownership Guidelines | Director stock ownership guideline: 20,000 shares within 5 years; no explicit executive officer ownership guideline disclosed |
Family Alignment Context:
- Combined beneficial ownership of Dr. Aelred Kurtenbach’s family members (including Matthew) and other executives/directors aggregated 9.0% as of June 9, 2025, highlighting insider alignment potential .
Employment Terms
| Provision | Detail |
|---|---|
| Employment Agreements | No employment agreements for NEOs; at-will employment |
| Clawback Policy | Adopted Sept 2023; Dodd-Frank 10D compliant; recovery for accounting restatements; also clawback across incentive forms per DEF 14A |
| Severance (Original Retention Plan; adopted 3/5/2025) | 1x of base salary + target annual bonus; COBRA reimbursement for 12 months; lump-sum payment of earned but unpaid amounts; pro-rata acceleration of outstanding equity awards (service-based proportion) |
| Change of Control | Double-trigger required for cash/equity acceleration; no single-trigger payments; committee may reduce 280G “parachute” payments to avoid excise tax |
| Post-Termination Estimates (Hypothetical as of 4/26/2025) | See below |
Post-Termination Compensation (Hypothetical as of 4/26/2025)
| Scenario | Stock Option Acceleration ($) | RSU Acceleration ($) | Vacation Pay ($) | Severance Pay ($) | COBRA Premiums ($) | Total ($) |
|---|---|---|---|---|---|---|
| Termination due to Change in Control | $32,152 | $57,611 | $44,264 | $330,000 | $22,509 | $486,536 |
| Termination without cause or for good reason | $32,152 | $57,611 | $44,264 | $330,000 | $22,509 | $486,536 |
| Termination for cause | — | — | $44,264 | — | — | $44,264 |
| Death | — | — | $44,264 | — | — | $44,264 |
| Retirement | — | — | $44,264 | — | — | $44,264 |
Compensation Structure Analysis
- Cash vs Equity Mix shift: FY2025 saw a large RSU grant ($224,945) vs prior years ($12,116 in 2024; $7,550 in 2023), reflecting retention focus; non-equity cash incentive declined sharply ($33,858 in 2025 vs $174,822 in 2024) due to low operating margin attainment (19%) .
- Options to RSUs shift: FY2025 included no option grant for Matthew and sizable RSUs, indicating lower risk equity and retention emphasis .
- Introduction of PSUs: FY2026 adds PSUs tied to profit and revenue growth (60%/40%), increasing pay-for-performance alignment with a three-year performance horizon, cliff vesting, and 25–150% payout range .
- Governance safeguards: No single-trigger CIC acceleration; clawback in place; hedging prohibited; equity award timing avoided around MNPI windows .
Compensation Peer Group (Benchmarking)
| Peer Companies |
|---|
| Apogee Enterprises, Inc. |
| Badger Meter, Inc. |
| Bio-Techne Corporation |
| Douglas Dynamics Inc |
| Graco, Inc. |
| Hawkins, Inc. |
| Lindsay Corporation |
| LSI Industries |
| Enerpac Tool Group Corp. |
| Johnson Outdoors Inc |
| Manitowoc Co Inc. |
| Mayville Engineering Co Inc. |
| Proto Labs Inc. |
| Strattec Security Corp. |
| Tennant Company |
Equity Award And Ownership Detail (FY2025 year-end)
| Category | Detail |
|---|---|
| Outstanding Options (Unexercisable; key grants) | 2,500 @ $4.11 exp 9/03/2030; 2,500 @ $5.66 exp 9/02/2031; 6,750 @ $3.02 exp 9/08/2032; 1,829 @ $9.85 exp 9/11/2033 |
| Unvested RSUs | 20,071 units; $252,092 market value at $12.56 closing price (4/25/2025) |
| FY2025 Exercises/Vesting | Options exercised: 48,957 shares; $310,716 value; Stock vested: 2,246 shares; $35,577 value |
Related Party And Risk Indicators
- Family relationships: Matthew is the brother of Reece A. Kurtenbach (former CEO, current director) and Carla S. Gatzke (VP HR), which concentrates governance influence; combined insider/family group owned ~9.0% as of June 9, 2025 .
- Hedging ban and trading policy: Comprehensive insider trading policy prohibits hedging, short sales, and derivative transactions; blackout periods enforced .
- No pension/tax gross-ups: No company pension or post-retirement health benefits; no tax gross-up policy disclosed; 280G mitigation via reductions at committee discretion .
- Award timing: No off-cycle awards near MNPI release windows in FY2025 .
Investment Implications
- Alignment improving: FY2026 PSUs directly tie pay to profit and revenue growth over three years, improving pay-for-performance rigor versus prior time-based RSU-heavy grants .
- Retention risk mitigated: Original Retention Plan (1x salary+target bonus; 12 months COBRA; pro-rata equity vesting) and large FY2025 RSU grants reduce near-term flight risk but raise dilution/overhang considerations .
- Insider supply watch: Significant FY2025 option exercises (48,957 shares; $310,716 value) indicate potential selling pressure; monitor future Form 4s for continued dispositions and PSU outcomes .
- Governance safeguards: Double-trigger CIC, clawback, hedging ban, and avoided grant timing near MNPI reduce risk of shareholder-unfriendly practices; absence of exec ownership guidelines limits formal skin-in-the-game targets despite meaningful personal holdings (~0.63%) .