W. Allen Doane, chairman and CEO of one of Hawaii's biggest companies, Alexander & Baldwin Inc., will retire at the end of the year as part of a succession plan that has been evolving over the past couple of years.

Succeeding Doane as CEO will be Stan Kuriyama, an A&B veteran who was promoted to president a year ago. Kuriyama also gains a seat on A&B's board of directors.

Former First Hawaiian Bank CEO Walter Dods, who is A&B's lead independent director, will become board chairman.

The changes are effective Jan. 1.

Doane, 61, has been CEO since 1998, and led the company through some of its best years of growth and net income.

The timing of his departure comes at a challenging time for the diversified firm involved in ocean transportation, real estate development and agriculture, though A&B said Doane informed the board in 2007 of his intention to retire at the end of this year.

"We have been planning this,"Dods said. "Allen has done the rare thing — he has prepared for an orderly transition. We have extreme confidence in Stan. He has been the right-hand man to Allen."

Kuriyama is assuming a position that in recent years has often been the highest-paid chief executive post among publicly traded companies based in Hawaii, and will be pressed to improve earnings in a weak economy much as Doane was when he took over as CEO 11 years ago amid Hawaii's previous economic downturn.

"While today's economic environment is obviously challenging, I am optimistic about our prospects," Kuriyama said. "We have strong operating companies and quality assets, we are committed to finding new ways and places to grow our business, and most of all, we are blessed with extraordinarily capable and dedicated employees throughout the organization."

KURIYAMA AS CEO

Kuriyama, 56, joined A&B in 1992 after being a partner at local law firm Cades Schutte Fleming & Wright. Since then, Kuriyama has risen through the ranks. He was named vice chairman and CEO of A&B Properties Inc. in 2000, and in 2005 became president and CEO of the division overseeing A&B Properties as well as the company's agricultural and trucking operations. In August, Kuriyama was named board chairman of A&B subsidiary Matson Navigation Co.

"A&B is truly fortunate to have an individual of Stan's proven capability and experience take on these leadership responsibilities, and I am confident that the company's best days are ahead," Doane said.

Doane joined A&B in 1991 as executive vice president and chief operating officer of what was then the company's real estate and food products subsidiary. Before joining A&B, Doane held executive positions with local real estate investment firm The Shidler Group and C. Brewer & Co., which like A&B was one of Hawaii's Big Five companies that once dominated commerce in the island chain.

'AN END IN MIND'

The CEO has often been the highest-paid chief executive of publicly traded Hawaii companies. Doane earned $5 million last year, down from $8.6 million a year earlier, according to the company's most recent proxy statement.

Doane said part of the reason for his timing is that he has two young children — a 3-year-old and a six-month-old. The other reason is that he said he has long assumed he would lead the company for a decade.

"I said to myself when I started (as CEO) — if I'm a little lucky and a little good I might last 10 years, " Doane said. "I started with an end in mind."

Upon retirement, Doane will continue to serve on A&B's board.

DOANE'S HIGH POINTS

Dods called Doane's leadership inclusive, highly strategic and insightful. "He has been the architect of A&B's strategy for accelerated growth, and his successes have left the corporation in a significantly improved operating and financial condition, and with much strengthened tangible assets and human resources," Dods said.

Some of A&B's biggest successes achieved under Doane include the development of the Keola Lai and Lanikea condominium towers in Honolulu, the acquisition and development of land at the Wailea Resort on Maui, launching Matson service to China, upgrading Matson's fleet and enhancing its ground-based transportation services.

Other plans haven't fared as well, including the purchase of Ward Centers that was lost at the 11th hour to General Growth Properties, a partnership with Gentry Cos. to develop 5,000 homes in Waiawa that hasn't progressed as anticipated, and the Kauai resort community Kukuiula where A&B has had to invest more money than planned due to slow sales.

PROFIT PICTURE

During Doane's leadership, A&B net income has risen from $25 million in 1998 to a high during the period of $142 million in 2007. Last year, profit declined 7 percent to $132 million, and has continued to fall this year.

In the first six months of this year, net income was $15.6 million, down from $71.7 million in the same period last year. Third-quarter financial results are to be announced Thursday.

A&B stock has ranged from around $20 a share when Doane became CEO to almost $60 in mid-2007. Yesterday, before Doane's retirement announcement, A&B stock closed at $33.70, not far from its 52-week high of $34.53 on Sept. 23 and well above the 52-week low of $16.21 on March 9.

George Pickral, a research analyst with Arkansas-based financial services firm Stephens Inc., said he doesn't expect any surprises in next week's earnings report, and added that even though Doane's retirement was a surprise publicly, he believes the company is in good hands.

"Stan will be a very capable replacement," he said.