HNA Group's $6bn proposed buyout of Ingram Micro has claimed its first management victim in the shape of president and chief operating officer Paul Read, who has left in order to pursue his career ambitions.
Read's abrupt departure after nearly three years as CEO Alain Monié's top lieutenant, is effective Friday 26 September, according to an 8-K Securities and Exchange Commission (SEC) filing.
His notice comes just nine days after initial word of the planned HNA takeover, leaving the high-profile deal, which came punctuated with pledges from both companies to maintain Ingram's leadership teams, likely open to closer scrutiny for other potential executive departures.
Damon Wright, executive director of investor relations at Ingram Micro, told CRN sister publication Channelnomics in an email that Read left because the HNA buyout got in the way of his career objective to succeed Monié as CEO.
"When [Read] joined Ingram Micro two years ago, it was with the idea that he would be in line for succession to CEO of a publicly traded Ingram Micro," Wright said.
Not only is that no longer on the cards, but for the foreseeable future Monié will head Ingram without a clear successor to the crown, Wright said.
"The HNA Group wants our management team to stay in place, led by Alain Monié as CEO," Wright told Channelnomics. "Based on this, [Read] reevaluated his future at Ingram Micro and decided to leave to pursue other opportunities. He will stay through September to assist [Monié]. There are no plans to replace his position at this time."
Ingram partner Mark Essayian, president of KME Systems, a Lake Forest, CA-based voice and data specialist, also said Read left because he was no longer heir apparent to Monié. "So, [it is] time to leave - it's just a business process decision," Essayian said.
Ingram and Read agreed on 26 September to part ways, according to the SEC filing. While his official exit is this Friday, 26 February, he will stay on until September to assist Monié in the transition, Ingram said. During that time he will be paid his base salary, benefits and his equity awards will continue to vest, the distributor added.
Read joined Ingram's executive ranks in 2013 after holding a seat on its board of directors. His background includes a 20-year stint at Flextronics, where he served most prominently as CFO. At Ingram, Read was responsible for the distributor's global IT operations and its logistics support organisations.
His step aside could prove to be a lucrative move. Ingram detailed in the SEC filing that if Read signs a general release next September, he will gain an undisclosed lump sum separation payment equivalent to 150 percent of his salary and target bonus, a pro-rated bonus for 2016, health insurance payments for the following 12 months, an accelerated vesting of his outstanding equity awards and outplacement services.
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