"I thought it was time to turn it over to the next generation of leadership ... and we have two really great Dons ready to go," Dods said yesterday.

Don Horner, 53, president of First Hawaiian Bank and a 25-year veteran of the company, will succeed Dods as the bank's CEO.

Don McGrath, 55, president of BancWest, will succeed Dods as CEO of the parent company and remain president and chief executive of the Bank of the West subsidiary.

"Honestly, no one individual will replace Walter Dods," Horner said.

In addition to his business roles, Dods, 62, has been active in Hawai'i politics and considered a run for governor in June 2002. He pulled back, saying he could not put his family through the rigors of a political campaign.

Dods, who served as campaign manager for former Democratic Gov. George Ariyoshi and U.S. Sen. Dan Inouye, D-Hawai'i, says he has no intention of getting into politics.

"I plan to do some public service, which has always been part of my heart, but probably not elected. I want to put that away as speculation," Dods said. "I will do some teaching and try to help young entrepreneurs on an advisory basis and probably some investing as well."

In 2001, Dods negotiated BancWest's acquisition by BNP Paribas of France in a deal in which he said he personally netted about $20 million. He earned $2.5 million in 2003 as the bank's top executive.

Although he is giving up the CEO title, Dods will continue to serve as chairman of BancWest and First Hawaiian Bank. Dods said he will run board meetings but does not plan to go into the office daily.

"I will try to set policy in general directions but I will no longer be the boss," he said.

Dods earlier made public his plans to retire and the company has been preparing for the development. Horner named a new management team last year in preparation for Dods' retirement.

Dods has been chairman and chief executive of First Hawaiian and its holding company since 1989. He joined First Hawaiian in 1968 and was named president in 1984 at age 43.

Dods serves on the boards of Alexander & Baldwin Inc., Matson Navigation Co., First Insurance Company of Hawaii Ltd., Grace Pacific Corp. and Pacific Guardian Life Insurance Co. Ltd. He is also a Damon Estate trustee.

Dods is a former president of the American Bankers Association and a former member of the Federal Advisory Council to Chairman Alan Greenspan and Federal Reserve Board of Governors.

As for whether he plans to stay in Hawai'i, Dods said, "Absolutely. I'm a local boy, all the way."