Sheila Anderson
About Sheila Anderson
Sheila M. Anderson is Daktronics’ Chief Data and Analytics Officer, leading digital transformation by integrating data into operations and decision-making; she previously served as CFO and Treasurer from 2012 until March 5, 2025, and was Corporate Controller (2006–2012) after joining Daktronics in 2003 as a project accountant. She holds a B.S. in Accounting (Southwest Minnesota State University), an MBA (University of South Dakota), and is a CPA since 1996; she is active with the South Dakota Chamber of Commerce and Industry and the Ness School of Business and South Dakota State University . She transitioned to CDAO in October 2024 and ceased the principal accounting officer designation on July 28, 2025 . Fiscal Q3 2025 company context: sales $149.5M (-12.2% YoY), gross margin 24.6%, operating loss $3.6M vs $8.0M operating income a year prior; adjusted operating income $1.2M and adjusted net income $0.5M after transformation-related items .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Daktronics | Chief Data & Analytics Officer | Oct 21, 2024 – present | Integrates data into daily operations; supports digital transformation |
| Daktronics | Principal Accounting Officer | Until Jul 28, 2025 | Oversight of accounting; designation ended to consolidate PFO/PAO roles under Acting CFO |
| Daktronics | Chief Financial Officer & Treasurer | 2012 – Mar 5, 2025 | Led finance, external reporting, treasury, M&A, IR, risk/legal; drove digital transformation |
| Daktronics | Corporate Controller | 2006 – 2012 | Finance leadership; controls and reporting |
| Daktronics | Project Accountant | 2003 – 2006 | Project accounting |
| Various firms | Senior accountant, auditor, consultant | Pre-2003 | Professional accounting and audit experience |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| South Dakota Chamber of Commerce and Industry | Executive involvement | Not disclosed | Monitors laws and compliance to improve state business environment |
| Ness School of Business; South Dakota State University | Engagement/Support | Not disclosed | Ongoing involvement |
Fixed Compensation
| Year | Base Salary ($) | Discretionary Bonus ($) | Non-Equity Incentive ($) | Stock Awards ($) | Option Awards ($) | All Other Comp ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 2023 | 314,985 | — | 5,272 | 7,550 | 16,313 | 6,536 | 350,656 |
| 2024 | 327,515 | — | 192,999 | 12,116 | 12,116 | 6,900 | 551,646 |
| 2025 | 333,400 | 50,000 | 34,207 | 213,512 | 13,460 | 10,350 | 654,929 |
| Program/Year | Target Bonus % of Salary | Notes |
|---|---|---|
| Fiscal 2025 | 65% of base (max payout 120% of target) | |
| Fiscal 2026 | 55% target for CDAO role |
Performance Compensation
Annual Incentive – Fiscal 2025 (Paid)
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Operating margin attainment | Not disclosed | Operating margin targets | 19% attainment | $34,207 cash | Annual cash payout |
Plan formula: [Base Salary] × [Target %] × scaling based on operating margin between min/max, with max payout at 120% of target .
Annual Incentive – Fiscal 2026 Program (Forward-looking)
| Metric | Weighting | Threshold–Max Payout | Target Bonus % |
|---|---|---|---|
| Company revenue (FY26) | 30% | 25%–150% of target; linear interpolation | 55% of salary (Anderson) |
| Company operating margin (FY26) | 50% | 25%–150% of target; linear interpolation | 55% of salary (Anderson) |
| Individual objectives (Anderson) | 20% | 25%–150% of target; linear interpolation | 55% of salary (Anderson) |
Long-Term Incentives
| Program | Instrument | Target Value | Performance Metrics | Payout Range | Vesting |
|---|---|---|---|---|---|
| Fiscal 2026 LTI | PSUs | 25% of base salary | Profit growth 60%; Revenue growth 40% | 25%–150% of target | Cliff vest at 3 years if earned |
| Fiscal 2026 LTI | RSUs | 75% of base salary | Time-based | N/A | Pro rata over 3 years |
| Grants on Jul 28, 2025 | RSUs | $129,375 (Anderson) | Time-based | N/A | Pro rata over 4 years |
| Grants on Jul 28, 2025 | PSUs | $43,125 (Anderson) | Profit 60%; Revenue 40% | 25%–150% of target | Cliff vest at 3 years if earned |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 100,029 shares (as of Jul 16, 2025); <1% of outstanding |
| Vested vs unvested RSUs (FY25 year-end) | 19,078 unvested RSUs; MV $239,620 (valued at $12.56 per share on Apr 25, 2025) |
| Options – exercisable/unexercisable (FY25 year-end) | Multiple grants; examples include: 9/30/2020 (10,000 exercisable; 2,500 unexercisable at $4.11, exp 09/03/30), 9/2/2021 (3,750 exercisable; 2,500 unexercisable at $5.66, exp 09/02/31), 9/8/2022 (4,500 exercisable; 6,750 unexercisable at $3.02, exp 09/08/32), 9/11/2023 (457 exercisable; 1,829 unexercisable at $9.85, exp 09/11/33), 9/9/2024 (0 exercisable; 2,090 unexercisable at $11.87, exp 09/09/34) |
| Award vesting conventions | Options vest in equal installments over 5 years starting 1 year after grant; 10-year term . RSUs generally vest 20% per year over 5 years . Fiscal 2026 RSUs vest over 3 years ; Jul 28, 2025 RSUs vest over 4 years . |
| Hedging/pledging | Hedging, puts/calls, and short sales prohibited for officers and directors per Trading Policy . Restricted stock may not be pledged or encumbered during restriction period . |
| Retention RSU grant (Mar 2025) | Intended value $200,040; RSUs calculated as value ÷ $14.33 closing price on Mar 4, 2025 (methodology disclosed) . |
| Option exercises/stock vested (FY25) | 7,500 options exercised; value realized $16,050; 2,246 shares vested; value realized $35,577 |
Employment Terms
| Term | Detail |
|---|---|
| Employment status | At-will; no employment agreement for NEOs (except noted for others) |
| Severance – Amended Retention Plan (Jun 23, 2025) | Cash severance multiplier: 1.5x base + target bonus if Qualifying Termination within 18 months of new CEO start; 2x base + target bonus within 12 months of Change in Control; otherwise 1.0x base + target bonus. All RSUs and options vest immediately on termination; PSUs vest pro rata based on days remaining, with actual PSUs earned based on performance at period end . |
| Change-in-control economics (estimated at Apr 25, 2025) | Option vesting acceleration $32,305; RSU vesting acceleration $56,090; Vacation pay $33,977; Severance pay $333,400; COBRA premiums $22,509; Total $478,281 (same total for termination without cause/good reason) . |
| Clawback | Executive Incentive Compensation Clawback Policy compliant with SEC/Nasdaq (recoupment of excess incentive compensation over 3 prior fiscal years upon restatement) . |
| Non-compete/Non-solicit | Not specifically disclosed for Anderson in proxy/8-Ks; general adherence to company policies referenced for other executives . |
Compensation Committee Analysis
- Philosophy emphasizes competitive, performance-based pay with significant “at risk” components; limited perquisites .
- Benchmarking peer group spans US manufacturing/technology companies ($450M–$2.0B revenue); committee does not use an external consultant and considers ERI data (excluding equity incentives) .
- Committee met 20 times in Fiscal 2025; Board and committees maintained robust cadence of meetings; independent directors held executive sessions .
- Average tenure of currently employed NEOs is 32.6 years with Daktronics, supporting internal equity and retention focus .
| Compensation Benchmarking Peer Group (as disclosed) |
|---|
| Apogee Enterprises; Badger Meter; Bio-Techne; Douglas Dynamics; Graco; Hawkins; LSI Industries; Lindsay Corporation; Tennant Company; Johnson Outdoors; Manitowoc; Proto Labs; Strattec Security; Enerpac Tool Group; Mayville Engineering |
Compensation Structure Notes (Trends & Signals)
- Year-over-year mix: Anderson’s 2025 equity compensation increased via a $200,040 retention RSU in addition to standard grants; non-equity incentive fell sharply vs 2024 as operating margin attainment was 19% .
- Shift to PSUs: Fiscal 2026 introduces PSUs tied to profit and revenue growth with 25%–150% payout range, strengthening pay-for-performance alignment .
- Discretionary bonus: $50,000 lump-sum in March 2025 for expanded responsibilities and principal accounting officer duties during Form 10-K preparation .
- Ownership guidelines: Director stock ownership guidelines disclosed; executive ownership guidelines not specified. Hedging is prohibited; Section 16 late filings disclosed (Anderson: two late reports) .
Equity Award Detail (FY25 Year-End Snapshot)
| Grant Date | Instrument | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration |
|---|---|---|---|---|---|
| 9/3/2015 | Option | 7,500 | — | 8.51 | 09/03/25 |
| 9/1/2016 | Option | 7,500 | — | 9.57 | 09/01/26 |
| 8/31/2017 | Option | 7,500 | — | 9.63 | 08/31/27 |
| 9/6/2018 | Option | 6,250 | — | 7.83 | 09/06/28 |
| 9/5/2019 | Option | 6,250 | — | 7.47 | 09/05/29 |
| 9/30/2020 | Option | 10,000 | 2,500 | 4.11 | 09/03/30 |
| 9/2/2021 | Option | 3,750 | 2,500 | 5.66 | 09/02/31 |
| 9/8/2022 | Option | 4,500 | 6,750 | 3.02 | 09/08/32 |
| 9/11/2023 | Option | 457 | 1,829 | 9.85 | 09/11/33 |
| 9/9/2024 | Option | — | 2,090 | 11.87 | 09/09/34 |
| Various | RSUs (unvested) | — | 19,078 | MV $239,620 (at $12.56) | Vests 20%/yr; see program variations |
Employment, Severance, and Change-of-Control Economics (Illustrative Values at FY25 Year-End)
| Component | Amount ($) |
|---|---|
| Stock option acceleration | 32,305 |
| RSU acceleration | 56,090 |
| Vacation pay | 33,977 |
| Severance pay | 333,400 |
| COBRA premiums | 22,509 |
| Total (Termination due to CoC or without cause/good reason) | 478,281 |
Risk Indicators & Red Flags
- Section 16(a) compliance: Two late reports filed by Anderson in Fiscal 2025; multiple other insiders also late, indicating process-control risks in insider reporting .
- Fiscal 2025 incentive outcomes: Company performance yielded only 19% attainment on operating margin goals; NEOs received $119,792 in total non-equity incentives vs $1,080,981 in Fiscal 2024, signaling tightening pay-for-performance and lower cash payouts .
- Governance transitions: CFO role transitioned to CDAO; principal accounting officer designation removed and consolidated under Acting CFO; leadership turnover can elevate execution risk near-term .
- Retention/severance terms: Amended Retention Plan increases potential severance multiples and accelerates vesting—valuable for retention but could create event-driven selling pressure upon terminations or CoC .
- Hedging prohibited: Reduces misalignment risk; no executive pledging policy disclosed beyond restricted stock restrictions .
Investment Implications
- Alignment rising: Introduction of PSUs tied to profit and revenue growth with three-year cliff vesting should better tie Anderson’s equity outcomes to long-term performance; monitor PSU targets and disclosures each grant cycle .
- Near-term selling pressure watch: Pro rata RSU vesting across three- and four-year schedules and accelerated vesting under the Amended Retention Plan create potential supply overhang in termination/CoC scenarios; option expiries laddered through 2034 .
- Execution risk: Fiscal 2025’s low incentive attainment and leadership changes suggest near-term operational risk; however, governance cadence and transformation initiatives may support medium-term improvements if profit/revenue trajectories meet 2026 Program thresholds .
- Skin in the game: Anderson’s 100,029-share beneficial ownership provides alignment but remains <1% of outstanding; hedging bans are a positive governance posture; no pledging disclosed .