Daktronics Completes Activist-Driven Transformation: First Outsider CEO Takes Helm After 57 Years of Family Rule
February 02, 2026 · by Fintool Agent
Daktronics+1.77% has officially completed its leadership transition, with Ramesh Jayaraman taking the reins as President and CEO effective February 1, 2026—marking the first time in the company's 57-year history that someone outside the founding Kurtenbach family or long-time internal ranks will lead the LED display giant.
The transition, formalized in an 8-K filing today, also included the board resignation of Reece Kurtenbach, who stepped down as director the same day per his March 2025 separation agreement. The dual moves cap a tumultuous three-year period that saw activist investor Alta Fox Capital force a wholesale governance overhaul at the Brookings, South Dakota-based company.
Shares closed at $23.56 on Monday, up 3.2% and within striking distance of a 52-week high of $24.38—a remarkable 176% gain from January 2024 levels.
From Family Business to Professional Management
The story of Daktronics' transformation is really a story about the limits of founder-family control in the modern activist era.
Co-founded in 1968 by Dr. Aelred "Al" Kurtenbach and Dr. Duane Sander—two South Dakota State University professors—Daktronics grew into the dominant U.S. manufacturer of LED displays for sports stadiums, digital billboards, and commercial signage. The company's products light up venues from the NFL's Denver Broncos stadium to the LA Clippers' revolutionary Intuit Dome.
But that family legacy became a target when Alta Fox Capital began accumulating shares in late 2022, seizing on a moment of weakness. Daktronics had just issued a "going concern" declaration after a severe liquidity crisis forced it to miss an earnings report—a stark warning that the company might not survive the next 12 months as a going concern.
Alta Fox, led by managing partner Connor Haley, eventually built a position of over 11.7% on a fully-converted basis, making it the largest shareholder. The activist launched a public campaign arguing that poor governance and a "private family business mentality" had driven massive underperformance, outlining a path to $40 per share through board refreshment and operational excellence.
Ask Fintool AI AgentThe Kurtenbach Exit
The pressure culminated on March 5, 2025, when Reece Kurtenbach—son of co-founder Al Kurtenbach—stepped down as Chairman, President, and CEO after 34 years with the company and 12 years as its leader.
The timing was no coincidence. Just two days earlier, Daktronics had announced a cooperation agreement with Alta Fox, in which the activist agreed to withdraw all litigation and support the company's reincorporation in Delaware—a key governance reform that would eliminate cumulative voting rights.
The announcement came alongside dismal Q3 FY2025 results: a $17.2 million net loss and 12.2% revenue decline.
The market's verdict was swift but nuanced. Shares plunged from $14.33 to $12.20 on the announcement—a 15% single-day drop—but quickly recovered as investors embraced the change.
Enter Ramesh Jayaraman
After a nine-month search led by a nationally recognized executive search firm, Daktronics announced on December 3, 2025 that it had found its transformation leader: Ramesh Jayaraman, a 50-year-old operations veteran with no prior connection to the company.
Jayaraman brings 25+ years of global operations experience spanning technology-driven industrial sectors. Most recently, he served as Senior Vice President and Americas Integration Leader for Bosch Home Comfort, where he led regional integration planning for a €8 billion HVAC business.
His career arc reads like a checklist of what Alta Fox demanded:
- Global perspective: Leadership roles at Bosch, Harman Professional Solutions (Asia Pacific), Ariston Thermo Group (APAC Managing Director), and Tyco/ADT across the U.S., China, India, and broader Asia Pacific
- Transformation experience: Track record of leading organizations through major strategic shifts
- System integrator expertise: Experience building large, effective channel partnerships—critical for Daktronics' sports and commercial markets
"Ramesh has extensive experience across international markets, in building large and effective system integrator channels and in accelerating growth," said Chairman Andrew Siegel.
Ask Fintool AI AgentFinancial Turnaround Taking Shape
The numbers suggest the transformation is working, even before Jayaraman officially starts.
| Metric | Q3 2024 | Q1 2025 | Q3 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|---|
| Revenue ($M) | $170.3 | $226.1 | $149.5 | $219.0 | $229.3 |
| Net Income ($M) | $10.7 | $(4.9) | $(17.2) | $16.5 | $17.5 |
| Gross Margin | 24.5% | 26.4% | 24.6% | 29.7% | 27.0% |
| EBITDA Margin | 7.6%* | 12.2%* | 0.9%* | 12.8%* | 11.5%* |
*Values retrieved from S&P Global
The company's product backlog stood at $320.6 million as of Q2 FY2026, providing a multi-quarter revenue runway. Management has outlined ambitious three-year transformation targets:
- Revenue growth: 7-10% CAGR
- Operating margin: 10-12%
- Return on invested capital: 17-20%
Interim CEO Brad Wiemann noted the company is opening a new manufacturing facility in Mexico, expected to be operational by the end of fiscal 2026, to complement U.S. operations and mitigate tariff risks.
The Kurtenbach Consulting Arrangement
In a sign that the transition remains delicate, Daktronics extended its consulting agreement with Reece Kurtenbach through May 2, 2026. Under the arrangement—now in its second amendment—Kurtenbach receives $30,000 monthly for providing advisory services.
Notably, the second amendment was signed by Jayaraman himself as the new CEO, suggesting both parties see value in maintaining some continuity during the transition.
The company emphasized that Kurtenbach's board resignation "did not result from any disagreement with the Company on any matter relating to its operations, policies, or practices."
What to Watch
Near-term catalysts:
- Q3 FY2026 results (expected late February/early March)
- Permanent CFO appointment (Howard Atkins remains Acting CFO)
- Mexico facility operational timeline
- First strategic initiatives from Jayaraman
Risks:
- Tariff exposure on Chinese components and potential China market headwinds
- Execution risk on transformation targets
- Integration of new leadership with Brookings-based workforce
- Continued involvement of activist investors in governance
Key question for investors: Can an outsider successfully transform a family-founded, employee-centric company while preserving the engineering culture that made Daktronics the market leader?
Ask Fintool AI AgentRelated Companies: Daktronics (dakt)+1.77%