10:36 AM EST, 11/27/2024 (MT Newswires) -- Engine Capital LP, which has a 7.1% stake in Dye & Durham ( DYNDF ) , on Wednesday issued a statement in response to Tuesday's announcement that Matt Proud will be stepping down from his role as CEO, three weeks before and investor meeting.

"We were shocked to learn that the Board approved a $10 million 'ransom' payment to Mr. Proud despite having no legal obligation to pay any severance to him. Apparently, this payment was made by directors to avoid being personally sued by Mr. Proud. Instead of protecting shareholders' capital, the directors put their own interests first," Engine said in a statement.

Engine added that Proud's continued presence on the Board will make a CEO search more difficult and will likely deter some of the best candidates.

Dye & Durham ( DYNDF ) is down $0.51 or 2.5% to $20.09, on the Toronto Stock Exchange.

Price: 20.21, Change: -0.40, Percent Change: -1.92