American Savings Bank President Timothy Schools plans to resign his position at year's end, according to a regulatory filing yesterday by parent company Hawaiian Electric Industries Inc.

Schools said that following the expected conclusion later this year of American Savings' Performance Improvement Project, he will return with his family to their home in South Carolina.

He has been president of American Savings since Feb. 1, 2008. Schools joined the bank on July 15, 2007, as senior executive vice president and chief operating officer.

Hawaiian Electric Industries and American Savings have hired Korn/Ferry International to conduct a nationwide search for president that will be headed by HEI President and Chief Executive Officer Connie Lau, who also serves as American Savings' chairwoman and CEO.

Schools will continue to receive his regular compensation through the end of this year, including participation in the executive incentive compensation plan and the 2008-10 long-term incentive plan. In addition, American Savings has signed a transition and consulting agreement with Schools under which he has agreed to provide consulting services to American Savings in 2011.

Schools received a base salary of $550,000 in 2009 and total compensation of $1.15 million, according to HEI's latest proxy filing.

Under Schools' leadership, American Savings began the multiyear Performance Improvement Project in early 2008 to improve its net income and profitability.

Since the project began, American Savings has exceeded the original expectations of the PIP and the project is now winding down.

American Savings has agreed to pay Schools the cash value of 7,000 restricted shares of HEI common stock that would have otherwise vested in December 2011 and April 2012. The restricted stock value will be measured as of Dec. 31 of this year. The cash payment will be payable in equal installments in December 2010 and December 2011.

The bank also has agreed to waive the final year of pro rata payment of Schools' signing bonus, which is about $100,000.