First-half goals from Nick Ross and Billy McKay secured three points from the Scottish Premiership clash, as Butcher looked on from the main stand.
The Englishman is tipped to be confirmed as Pat Fenlon's successor on Monday and opted not to take his place in the opposition dug-out for the meeting with his potential new club.
And he will have his work cut out for him when he completes the move after watching an Inverness victory that should have been even more convincing.
Liam Craig was suspended for the home side, while captain James McPake had to settle for a place on the bench after serving his own ban.
Inverness named an unchanged side from last week's win over Kilmarnock, as they sought to continue a decent start to the season despite the uncertainty surrounding their manager.
Hibs dominated possession in the opening spell but failed to break down the Inverness defence, with Alan Maybury screwing an effort high and wide.
Ross stepped up for the spot-kick, with goalkeeper Ben Williams getting a decent touch but unable to keep the ball out of the net.
Inverness doubled their advantage three minutes later when McKay raced onto a pass from Shinnie before rifling home from a tight angle.
The goal prompted chants of "Butcher, Butcher, what's the score?" from the Caley Thistle fans, as their manager sat impassive in the stand.
The visitors should have extended their lead further when Aaron Doran attempted to pick out McKay at the back post.
Maybury intercepted and his clearance almost trundled over the line, eventually coming off the post to the relief of the Leith side.
There was proving to be little respite for Hibs as Shinnie then sent a ferocious drive flashing across goal and just wide of target.
Hibs tried to haul themselves back into the game and Paul Hanlon nodded wide from a corner, before Ryan McGivern tried his luck with a long-range shot that failed to test Dean Brill.
It was no real surprise to see Hibs make a couple of changes at the break, with Rowan Vine and Abdellah Zoubir replacing McGivern and Tom Taiwo.
They did start the second half more positively but it was Inverness who came close when a point-blank header from Marley Watkins was blocked by Williams.
At the other end, Shinnie was called into action to clear a Collins header off the line, before the Hibs player made way for youngster Jason Cummings.
A downward header from McKay six yards out was also claimed by Williams, as Inverness tried to put the game beyond their hosts with 20 minutes to go.
Ross then went to ground under pressure from Maybury just inside the box but there was no spot-kick award from referee Bobby Madden on this occasion.
Inverness held on to take the three points back to the Highlands but knowing they could soon be without a manager.
- Sports & Recreation
- Billy McKay
- Alan Maybury
- Graeme Shinnie
- Ben Williams