UPDATE: Insight President Farfante Terminated

Farfante was terminated without cause, said the SEC document, dated April 27. CEO Richard Fennessy, who took the helm of the Tempe, Ariz.-based solution provider last October, will serve as president of Insight North America, according to the company.

A nine-year Insight veteran, Farfante was given a $2.4 million parachute, including base pay and incentives, the company said.

In an e-mail to some customers and vendors, Farfante wrote, "I have made the decision to retire from Insight and spend more time focusing on personal goals."

He also said in the e-mail that he will work with Insight through July during a transition period. The SEC filing said Farfante is on paid administrative leave through July 25.

Farfante's ouster surprised some channel insiders, but they said it's common for a new CEO to want to put his own team in place. "It's what new CEOs do," said one industry analyst, who requested anonymity.

In the first quarter ended March 31, Insight's sales rose 8 percent, and its earnings fell 7 percent. The company posted a profit of $15.5 million, or 31 cents per share, compared with $16.6 million, or 34 cents per share, in the year-ago quarter. Sales were $779.4 million, up from $721.5 million a year earlier.