Dods near decision on governor's race

By Frank Cho and Lynda Arakawa
Advertiser Staff Writers

BancWest Chairman Walter Dods, one of Hawai'i's most prominent and influential businessmen, said yesterday he is considering running for governor as a Democrat, a move that would give the fractured party a powerful but politically untested candidate.

Walter Dods, a bank chief, would run for governor as a Democrat. Advertiser library photo

Dods, chairman and chief executive officer of the state's biggest bank-holding company, which operates in Hawai'i as First Hawaiian Bank, said he is considering the move because he believes that the state and the Democratic Party need leadership. His decision is expected later this week.

"I love the bank, and I love this community," Dods said. "I think Hawai'i needs strong leadership right now."

Rumors about Dods' candidacy have been swirling in political circles since the withdrawal last month of the Democratic front-runner, Honolulu Mayor Jeremy Harris.

Since then, some prominent Democrats have been searching for a strong gubernatorial candidate because of their concern that none of the current candidates — D.G. "Andy" Anderson, state Rep. Ed Case and Lt. Gov. Mazie Hirono —can beat Republican Linda Lingle. Lingle, who narrowly lost the governor's race in 1998, is ahead significantly in the polls as well as in fund raising.

Some Democrats see Dods as the Democrats' best shot at victory because of his his ability to raise money quickly and his visibility in political, business and the community circles.

He has never held elective office, and his background would blunt the GOP's criticism of Democrats as being anti-business.

But Dods' credentials as a businessman and multimillionaire may be troubling to some in the party, especially social liberals and members of organized labor, who have been supportive of Hirono. His candidacy could move the Democrats closer to the political center than they have been in their nearly 50 years of power.

Friends said yesterday it is unlikely that Dods would be talking about running for governor if he were not already planning on it.

"This is way too serious," said Robert Clarke, chairman and chief executive of Hawaiian Electric Industries, who has known Dods for 20 years.

Yesterday, Harris said he believed that Dods would be a strong candidate for governor.

"I can't think of anyone who has more respect in the business community, has established himself as not only a leader in Hawai'i but an international leader of some prominence coupled with impeccable credentials for community service and volunteerism and all the rest," Harris said. "I think he really brings a unique set of talents to the job as governor."

Hirono, considered the Democratic front-runner after Harris' withdrawal, yesterday dismissed talks of Dods' candidacy as speculative. She also raised the issue that will likely complicate a Dods candidacy: his wealth.

"This election isn't going to be won by money being thrown around," Hirono said. "I am running a grassroots campaign, and I have faith that the people of this state will vote for the person that they believe really will represent their concerns and their interests."

In 2001, Dods earned more than $2.8 million in salary, bonuses and other pay. He was expected to make about $30 million before taxes from stock and stock options he owned when BancWest was acquired by a French bank last year.

Other candidates said they would welcome Dods to the race.

"I think it would give the people another choice," said Anderson, a former Republican state senator.

But Anderson also said the move may further split the party, with some seeing support of Dods as a betrayal of Hirono.

"I'm surprised that the movers and shakers in the party would do this to her," he said. "Mazie has been a strong ally and very, very loyal. The manipulators, the guys behind the scenes, really don't want me, but to do this to one of their own, I think, is kind of sad."

Case said a Dods candidacy would not affect his efforts.

"I've heard a million rumors and possibilities of this person or that person either getting into or getting out of the governor's race since I announced my candidacy last October," he said. "At this point it's fruitless to comment on a candidacy that doesn't exist. ... Nothing is going to change based on who may or may not be in the race."

Lingle's campaign declined to comment.

Dods' candidacy is not a certainty. His family is known to be strongly against his running, and he signed a three-year job contract last year with BancWest. Dods will also have to play catch-up to other candidates who are establishing their organizations statewide and running media campaigns.

"He is not a 'household name' person ... yet," said University of Hawai'i political science professor Yas Kuroda. "He has the contacts in terms of raising money. I'm sure one of the drawbacks is that he hasn't had any experience in elected politics. But his strength is in the financial support he may be able to garner in a short time."

Dods, who was born in Honolulu, is a 1959 graduate of St. Louis Schools. He earned a bachelor's degree in business administration from the University of Hawai'i.

Dods worked his way up through managerial positions at the bank and, in 1989, became chairman and chief executive officer of First Hawaiian Inc., the former name of BancWest. He served as president of the American Bankers Association and, from 1998 to 2000, was a member of the Federal Reserve Board's Federal Advisory Council.

Dods has played a large backstage role in the Democratic Party and worked on the campaigns of prominent Democrats, such as U.S. Sen. Dan Inouye.

In 1998, Gov. Ben Cayetano asked Dods to help lead a 20-member Economic Revitalization Task Force.

Dods said yesterday that if he does decide to run for office, he has left his bank in a strong position. Under Dods' leadership, the company has grown from Haai'i's second-largest banking company to among the 25 biggest banks in the country in terms of assets. Dods already has named a successor at the bank, Don Horner.

Reach Frank Cho at 525-8088 or at fcho@honoluluadvertiser.com.