Insight CEO Sees Compensation Package Drop In 2008

Fennessy earned $2.32 million in 2008, including $750,000 in base salary, which was his same pay from 2007. He also earned $1.07 million in stock awards, $403,378 in options and $450,000 in incentive pay, all down from the prior year

However, Fennessy missed out on $900,000 in 2008 bonus pay related to missed earnings from operations targets and $150,000 related to individual performance goals.

Insight's 10-K was delayed as the company concluded its restatement of its financials dating back to 1996. The restatement will result in $61,220,000 in charges related to how the company dealt with aged credits such as payables and receivables, according to the Phoenix Business Journal.

Five other Insight executives earned a total of $583,211 in bonuses, out of a possible $1,576,000, according to the 10-K. Two of those executives, Mark McGrath and Gary Glandon, resigned earlier this year, and a third, Catherine Eckstein, resigned last July.

"Our long-term success depends on our ability to attract and retain individuals who are committed to the company's strategy and core values of client service, respect and integrity," the board wrote in the SEC filing.

Insight experienced a significant decline in the company's stock during 2008, which contributed to the executives earning about 40 percent of their total potential compensation. Insight's stock closed at $6.90 per share on Dec. 31, 2008, down from a close of $18.00 per share on Jan. 2, 2008.

Insight shares were trading at $7.95 Tuesday. In the first quarter, the company's sales fell 14 percent to $951 million and it reported a $6.8 million loss, which compared to a $8.2 million profit in the first quarter of 2008.

For 2009, Fennessy can earn a target of $1,125,000 in bonuses, with a maximum of $2,250,000.

"Against the backdrop of the global recession that began in 2008, the compensation committee went to great lengths to develop an executive compensation program for 2009 that is fair and motivating to our executives, while at the same time being mindful of stockholder interests and expectations," wrote the board in the filing.