Daktronics Files Preliminary Proxy Statement for Special Meeting of Shareholders
Daktronics (NASDAQ:DAKT) has filed a preliminary proxy statement for a special meeting of shareholders to vote on reincorporating from South Dakota to Delaware. The company emphasizes this change will only affect its legal domicile while maintaining its headquarters and operations in South Dakota.
The reincorporation aims to enhance corporate governance by implementing a majority voting standard for uncontested director elections, proxy access, and a conventional statutory voting system. These changes would ensure majority shareholders can elect a cohesive Board while preventing minority groups from selecting directors for particular interests.
As one of South Dakota's largest employers with over half of its nearly 3,000 employees based in the state, Daktronics reaffirms its commitment to maintaining its strong presence and continuing investments in South Dakota communities, where it has operated since its founding in 1968.
Daktronics (NASDAQ:DAKT) ha presentato una dichiarazione di delega preliminare per una riunione straordinaria degli azionisti per votare sulla reincorporazione da South Dakota a Delaware. L'azienda sottolinea che questo cambiamento influirà solo sulla sua sede legale, mentre manterrà la sua sede e le operazioni in South Dakota.
La reincorporazione mira a migliorare la governance aziendale introducendo uno standard di voto maggioritario per le elezioni non contestate dei direttori, l'accesso alla delega e un sistema di voto statutario convenzionale. Questi cambiamenti assicurerebbero che gli azionisti di maggioranza possano eleggere un Consiglio coeso, impedendo ai gruppi minoritari di selezionare i direttori per interessi particolari.
Essendo uno dei maggiori datori di lavoro del South Dakota con oltre metà dei suoi quasi 3.000 dipendenti basati nello stato, Daktronics riafferma il suo impegno a mantenere una forte presenza e a continuare gli investimenti nelle comunità del South Dakota, dove opera sin dalla sua fondazione nel 1968.
Daktronics (NASDAQ:DAKT) ha presentado una declaración de poder preliminar para una reunión extraordinaria de accionistas con el fin de votar sobre la reincorporación de Dakota del Sur a Delaware. La empresa enfatiza que este cambio solo afectará su domicilio legal, manteniendo su sede y operaciones en Dakota del Sur.
La reincorporación tiene como objetivo mejorar la gobernanza corporativa mediante la implementación de un estándar de votación mayoritaria para las elecciones de directores no disputadas, acceso a poderes y un sistema de votación estatutario convencional. Estos cambios asegurarían que los accionistas mayoritarios puedan elegir una Junta cohesiva, mientras se evita que los grupos minoritarios seleccionen directores para intereses particulares.
Como uno de los mayores empleadores de Dakota del Sur, con más de la mitad de sus casi 3,000 empleados basados en el estado, Daktronics reafirma su compromiso de mantener una fuerte presencia y continuar realizando inversiones en las comunidades de Dakota del Sur, donde opera desde su fundación en 1968.
닥트로니크스 (NASDAQ:DAKT)는 주주총회를 위한 초기 위임장서를 제출하여 사우스다코타에서 델라웨어로 재법인화하는 안건을 투표에 부칠 예정입니다. 회사는 이 변경이 법적 거주지에만 영향을 미치며 사우스다코타에 본사와 운영을 유지할 것이라고 강조합니다.
재법인화의 목표는 비경쟁 이사 선거에 대해 다수결 투표 기준을 도입하고, 위임장 접근 및 전통적인 법정 투표 시스템을 통해 기업 거버넌스를 강화하는 것입니다. 이러한 변화는 대주주가 일관된 이사회를 선출할 수 있도록 보장하면서 소수 그룹이 특정 이해관계를 위해 이사를 선출하는 것을 방지할 것입니다.
사우스다코타에서 가장 큰 고용주 중 하나로서 거의 3,000명의 직원 중 절반 이상이 주 내에 있는 닥트로니크스는 1968년 설립 이후 사우스다코타 커뮤니티에 대한 강력한 존재감과 지속적인 투자를 유지하겠다는 의지를 재확인합니다.
Daktronics (NASDAQ:DAKT) a déposé une déclaration de procuration préliminaire pour une assemblée générale extraordinaire des actionnaires afin de voter sur la réincorporation du Dakota du Sud vers le Delaware. L'entreprise souligne que ce changement n'affectera que son domicile légal tout en maintenant son siège et ses opérations dans le Dakota du Sud.
La réincorporation vise à améliorer la gouvernance d'entreprise en mettant en œuvre un standard de vote majoritaire pour les élections non contestées des administrateurs, l'accès aux pouvoirs et un système de vote statutaire conventionnel. Ces changements garantiraient que les actionnaires majoritaires puissent élire un conseil d'administration cohérent, tout en empêchant les groupes minoritaires de sélectionner des administrateurs pour des intérêts particuliers.
En tant que l'un des plus grands employeurs du Dakota du Sud, avec plus de la moitié de ses près de 3 000 employés basés dans l'état, Daktronics réaffirme son engagement à maintenir une forte présence et à continuer d'investir dans les communautés du Dakota du Sud, où elle opère depuis sa fondation en 1968.
Daktronics (NASDAQ:DAKT) hat eine vorläufige Vollmachtserklärung für eine außerordentliche Aktionärsversammlung eingereicht, um über die Reinkorporation von South Dakota nach Delaware abzustimmen. Das Unternehmen betont, dass diese Änderung nur seinen rechtlichen Sitz betrifft, während die Zentrale und die Betriebe in South Dakota erhalten bleiben.
Die Reinkorporation zielt darauf ab, die Unternehmensführung zu verbessern, indem ein Mehrheitswahlstandard für nicht umstrittene Direktorenwahlen, den Zugang zu Vollmachten und ein konventionelles gesetzliches Abstimmungssystem eingeführt wird. Diese Änderungen würden sicherstellen, dass Mehrheitsaktionäre einen kohärenten Vorstand wählen können, während sie verhindern, dass Minderheitengruppen Direktoren mit bestimmten Interessen auswählen.
Als einer der größten Arbeitgeber in South Dakota, mit über der Hälfte seiner fast 3.000 Mitarbeiter, die im Bundesstaat beschäftigt sind, bekräftigt Daktronics sein Engagement, eine starke Präsenz aufrechtzuerhalten und weiterhin in die Gemeinschaften von South Dakota zu investieren, in denen es seit seiner Gründung im Jahr 1968 tätig ist.
- Proposed corporate governance enhancements would strengthen shareholder rights and voting power
- Reincorporation to Delaware provides access to well-established, predictable corporate law framework
- No operational changes or relocations required, maintaining business stability
- Additional costs associated with reincorporation process
- Potential short-term administrative complexities during transition
Insights
The proposed reincorporation to Delaware represents a strategic governance modernization that could enhance shareholder rights and corporate flexibility. Delaware's extensive case law and specialized business courts provide superior legal clarity and predictability compared to South Dakota's relatively corporate jurisprudence. The move introduces critical governance improvements including majority voting for directors, proxy access and elimination of cumulative voting.
The elimination of cumulative voting is particularly noteworthy as it prevents minority shareholders from concentrating their votes to elect individual directors, promoting board cohesion and reducing the risk of factional interests gaining outsized influence. Delaware's corporate framework offers more sophisticated mechanisms for shareholder rights protection while maintaining management flexibility for strategic decisions.
This structural change aligns Daktronics with corporate governance best practices adopted by over 60% of Fortune 500 companies incorporated in Delaware. The retention of South Dakota operations while optimizing the legal framework demonstrates a balanced approach to corporate evolution.
This reincorporation initiative reflects a sophisticated approach to positioning Daktronics for future growth while managing stakeholder interests. The company's commitment to maintaining its operational presence in South Dakota while accessing Delaware's advanced corporate legal framework creates a dual advantage: preserving its established talent pipeline and operational efficiency while gaining enhanced corporate flexibility and shareholder protections.
The timing suggests proactive governance optimization rather than reactive measures, indicating strong forward-thinking leadership. The move could potentially attract institutional investors who prefer Delaware's familiar legal framework, possibly improving stock liquidity and valuation multiples over time. The careful messaging around local commitment while pursuing corporate evolution demonstrates strategic communication aimed at maintaining stakeholder confidence during this transition.
Shareholders to Vote on a Proposal to Reincorporate the Company in Delaware
Reaffirms Commitment to Maintaining Headquarters and Operations in South Dakota
BROOKINGS, S.D., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Daktronics, Inc. (“Daktronics,” the “Company,” “we” or “us”) (NASDAQ-DAKT), the leading U.S.-based designer and manufacturer of best-in-class dynamic video communication displays and control systems for customers worldwide, today announced that the Company has filed a preliminary proxy statement and plans to hold a special meeting of shareholders (the “Special Meeting”) to consider and vote upon a proposal to change the Company’s jurisdiction of incorporation from South Dakota to Delaware.
“We are proud of our long history in South Dakota and remain committed to maintaining our headquarters and operations in the state,” said Reece Kurtenbach, Daktronics’ Chairman, President and Chief Executive Officer. “As our business has grown and become more complex, we have come to recognize the importance of evolving our corporate governance structure. Delaware is the legal domicile for most large, publicly traded companies, and its corporate law is well understood, clear and predictable and provides strong shareholder rights and protections. We believe changing our legal domicile to Delaware – without making any other structural changes to our employee base, facilities, operations or commitments to our communities – supports our ongoing business transformation plan and enables us to enhance the rights of our shareholders while continuing to benefit from the exemplary work ethic and ingenuity of our South Dakota employees.”
Reincorporation will provide an opportunity for the Company to make corporate governance enhancements – including a majority voting standard for uncontested director elections, proxy access and a conventional, statutory voting system for director elections – which will ensure holders of the majority of shares are able to elect a cohesive Board of Directors and eliminate the risk that a minority group of shareholders can hand-pick a faction of directors they believe will represent their particular interests.
South Dakota has been Daktronics’ home since 1968, when the Company was founded by Drs. Aelred Kurtenbach and Duane Sander, two professors at South Dakota State University, to capitalize on engineering talent graduating in South Dakota. The Company has its roots in this mission, and Daktronics’ growth from a small, local company to a world leader in the display industry has been fueled primarily by this talent pool as it has expanded into the global marketplace.
Today, more than half of the Company’s nearly 3,000 employees work in South Dakota. Daktronics proudly ranks among South Dakota’s largest employers and intends to continue to invest in its people and communities to maintain its strong presence in the state.
Mr. Kurtenbach added, “While Daktronics’ legal jurisdiction may change, our home will not. Our corporate headquarters, along with important manufacturing, engineering, sales and service facilities and the vast majority of our employees, will remain in South Dakota, where we have been for more than 50 years.”
Further details about the Special Meeting will be included in the Company’s definitive proxy materials to be distributed to all shareholders eligible to vote at the Special Meeting. The Company encourages all shareholders to carefully review those materials when they are available.
If you have any questions or require any assistance with voting your shares, please contact our proxy solicitor, Alliance Advisors, LLC, at (833) 215-7293 or dakt@allianceadvisors.com.
About Daktronics
Daktronics has strong leadership positions in, and is the world's largest supplier of, large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. The Company excels in the control of display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation, and video. Daktronics designs, manufactures, markets and services display systems for customers around the world in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, and one International business unit. For more information, visit the Company's website at: www.daktronics.com.
Safe Harbor Statement
Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. These forward-looking statements reflect the Company's expectations or beliefs concerning future events. The Company cautions that these and similar statements involve risk and uncertainties which could cause actual results to differ materially from our expectations, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts and orders, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions, increased regulation, and other risks described in the Company's filings with the U.S. Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K for its 2024 fiscal year. Forward-looking statements are made in the context of information available as of the date stated. The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
Important Additional Information
The Company intends to file a definitive proxy statement (the “Proxy Statement”) and a proxy card with the SEC in connection with the solicitation of proxies for a Special Meeting of Shareholders of the Company (the “Special Meeting”). SHAREHOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ THE PROXY STATEMENT, ACCOMPANYING PROXY CARD, AND ALL OTHER DOCUMENTS FILED WITH, OR FURNISHED TO, THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE SPECIAL MEETING. Shareholders will be able to obtain the Proxy Statement, any amendments or supplements to the Proxy Statement, and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge at the Company’s website at https://investor.daktronics.com/.
Participant Information
The Company, its directors, and certain of its executive officers (as set forth below) are deemed to be “participants” (as defined in Section 14(a) of the Securities Exchange Act of 1934, as amended) in the solicitation of proxies from the Company’s shareholders in connection with the matters to be considered at the Special Meeting. Information about the compensation of our named executive officers and our independent directors is set forth in the sections titled “Executive Compensation” and “Fiscal Year 2024 Director Compensation” in the Company’s definitive proxy statement on Schedule 14A for the Company’s 2024 Annual Meeting of Shareholders, filed on August 5, 2024 (the “2024 Definitive Proxy”), commencing on pages 23 and 16, respectively, and is available here. Information regarding the participants’ holdings of the Company’s securities can be found in the section titled “Security Ownership of Certain Beneficial Owners and Management” in the 2024 Definitive Proxy commencing on page 4 and is available here, and as updated in the filings referenced in the table below. Supplemental information regarding the holdings of the Company’s securities can be found in the SEC filings on Forms 3 and 4, and as referenced in the table below, and such filings are available on the Company’s website at https://investor.daktronics.com/ or through the SEC’s website at www.sec.gov. Updated information regarding the identity of potential participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the section titled “Security Ownership of Certain Beneficial Owners and Management” of the Proxy Statement and other materials to be filed with the SEC in connection with the Special Meeting.
| Certain Executive Officers | |||||
| Name | Ownership | Filing Date | Filing Type | Hyperlink | |
| Sheila M. Anderson (Chief Financial Officer, Chief Data and Analytics Officer, and Treasurer) | 44,355.94 | 01/17/2025 | Form 4/A | https://www.sec.gov/Archives/edgar/data/915779/000091577925000019/xslF345X05/wk-form4a_1737168300.xml | |
| 08/27/2024 | Form 4 | https://www.sec.gov/Archives/edgar/data/1558306/000091577924000058/xslF345X05/wk-form4_1724781169.xml | |||
| Certain Executive Officers | |||||
| Name | Ownership | Filing Date | Filing Type | Hyperlink | |
| Carla S. Gatzke (Vice President of Human Resources and Secretary) | 842,940 | 01/17/2025 | Form 4 | https://www.sec.gov/Archives/edgar/data/915779/000091577925000025/xslF345X05/wk-form4_1737168545.xml | |
| Matthew J. Kurtenbach (Vice President of Manufacturing) | 274,517.70 | 01/21/2025 | Form 4 | https://www.sec.gov/Archives/edgar/data/915779/000091577925000029/xslF345X05/wk-form4_1737457375.xml | |
| Bradley T. Wiemann (Executive Vice President) | 97,193.926 | 01/17/2025 | Form 4/A | https://www.sec.gov/Archives/edgar/data/915779/000091577925000022/xslF345X05/wk-form4a_1737168456.xml | |
For more information contact:
INVESTOR RELATIONS:
Sheila M. Anderson, Chief Financial Officer
Tel (605) 692-0200
Investor@daktronics.com
Alliance Advisors IR
Carolyn Capaccio / Jody Burfening
DAKTIRTeam@allianceadvisors.com
MEDIA:
Gagnier Communications
Riyaz Lalani / Lindsay Barber
Daktronics@gagnierfc.com
FAQ
What changes will Daktronics (DAKT) reincorporation to Delaware bring to shareholders?
Will Daktronics (DAKT) move its operations from South Dakota after reincorporation?
When will Daktronics (DAKT) shareholders vote on the Delaware reincorporation?
How many Daktronics (DAKT) employees will be affected by the Delaware reincorporation?
