SIOUX FALLS, S.D. (KELO) — The leader of Daktronics in Brookings, Reece Kurtenbach, has left has role as Chief Executive Officer effective Wednesday, the company announced.

Kurtenbach will also step down as chairman and president at Daktronics, the company said in its 3rd quarter fiscal year 2025 announcement. Kurtenbach has been with the electronic scoreboard, digital board manufacturer for 34 years. He’s been the CEO since 2013

Rounds gives thoughts on the address to Congress

“Today’s announcement reflects our commitment to ensuring that we have the right leadership for long-term growth, profitability, and balance sheet efficiency goals,” board member Andrew Siegel said during Wednesday’s investor report, according to a transcript of that report.

Siegel said the company needs to “accelerate change” to drive new levels of commercial success and financial performance.

“We’re making this change today to move more quickly and demonstrably toward our objective of growing long-term shareholder value,” Siegel said during the report, according to the transcript.

The departure of Kurtenbach comes after Daktronics and its largest investor Alta Fox announced on March 3 an agreement for Alta Fox to withdraw its lawsuit over Daktronic’s incorporation plan for Delaware.

Daktronics announced in January it planned to change its incorporation jurisdiction to Delaware. Alta Fox claimed the Delaware incorporation would be harmful to shareholders, while Daktronics said Delaware incorporation strengthens shareholder rights because the laws there include a majority voting standard for uncontested elections and proxy access.

Under the agreement, Daktronics placed appointed Peter Feigin, an Alta Fox-recommended candidate to the Daktronics Board of Directors.  Alta Vista would also get input on the selection of a new chief financial officer. Daktronics said Wednesday that CFO Sheila Anderson will focus on her role as chief data and analytics officer.

The jurisdiction plan continues. A change in jurisdiction would not physically move the Brookings plant to Delaware.

The March 3 agreement did not include Alta Fox input on the selection of a new CEO.

In December, Alta Vista demanded a change in the leadership of Daktronics and cited company underperformance under Kurtenbach’s leadership.

Siegel said on Wednesday that a nationwide search will be used to find a new CEO. In the meantime, company’s executive vice president Brad Wiemann will serve as the interim CEO.

In other changes, Siegel will become chairman of the board. Howard Atkins has been appointed acting CFO and chief transformation officer.

Daktronics said Wednesday it posted 12.2% decrease in sales from the same quarter in 2024 and an operating loss of $3.6 million.

Kurtenbach will continue to advise the company on its digital transformation efforts, the news release said.