The Hawai'i Tourism Authority board agreed unanimously to retain Rex Johnson as president and CEO of the state's leading tourism agency despite his use of a state computer to send and receive adult-oriented e-mail.

The board reduced Johnson's $240,000 annual salary to $200,000 and cut his four-year contract to one year.

"I think the punishment is fair," Johnson said. "I'll never do that again."

Industry officials, community leaders and HTA staff members supported keeping Johnson in the job at a time when Hawai'i's largest industry is facing a decline in visitors.

"It wasn't the right time to take out an effective director," said state Sen. Clarence Nishihara, D-18th (Waipahu, Crestview, Pearl City) and chairman of the tourism committee.

HTA board chairman Kelvin Bloom said the board "carefully and thoroughly reviewed" the matter before unanimously issuing the sanction.

Bloom said the board added "a specific reference to any violation of the computer use policy" to Johnson's contract. The board also issued a verbal and written reprimand, he said.

The full board met for nearly seven hours last week to discuss Johnson's continued employment after some had called for his resignation.

Johnson has apologized several times for his action and did so again yesterday.

"I apologize for my error in judgment which put the board in a very difficult position," he said.

He thanked the board for expressing "confidence in my ability to lead HTA as we move forward to address the challenges facing the tourism industry."

Johnson was preparing yesterday for a Mainland business trip that includes meeting with airline officials from Delta Airlines in Atlanta and Continental Airlines in Houston.

MOVING FORWARD

Bloom said Johnson apologized to the board for his misuse of his state laptop computer and "we have accepted his apology but sternly warned that any future infractions will be treated more severely."

He added, "We are pleased to have resolved this issue and Rex has the board's full support going forward."

Bloom said the board felt the sanction fit the violation. He said the board considered public testimony in support of Johnson as well as the view of "some people who didn't come forward publicly but called for ending his employment."

Nishihara said some disciplinary action was needed for the inappropriate behavior though he found the board's action "pretty severe."

Nishihara said: "That's one-sixth of his pay."

Outrigger Enterprises Group president and CEO David Carey said the board made the smart decision to keep Johnson after he admitted a mistake.

"It's time to move forward," Carey said. "He's a good consensus-builder."

State Rep. Ryan Yamane, D-37th (Waipahu, Mililani), chairman of the House Tourism and Culture Committee, said Johnson's overall performance has been good.

He said Johnson is active and involved as an advocate for tourism who communicates well with lawmakers.

"He and I haven't seen eye to eye on everything," Yamane said. "His goal is to boost tourism while I'm trying to find a balance between bringing people here and its effect on the people."

Still, Yamane said he was glad the board agreed to keep Johnson on the job.

"We will continue to be vigilant on watching both Mr. Johnson and the HTA board over the next year," Yamane said.