Chuck Sted is leaving his post as chief executive of Hawaii Pacific Health to pursue an interest in board service in the public, private and community sectors, the company announced Monday.

Sted, 62, will step down Feb. 28 and be succeeded by Ray Vara, 43, the current president and CEO of operations. Sted’s total compensation package was $2.1 million in the fiscal year ended June 30, 2011, while Vara earned $1.4 million, according to the nonprofit’s tax documents.

HPH, parent company of Kapiolani Medical Center for Women & Children, Pali Momi Medical Center, Straub Clinic & Hospital and Wilcox Health on Kauai, said the move is part of a leadership succession plan effective March 1.

"This organization has done an excellent job of cultivating future leaders and the board is pleased to recognize Ray for his accomplishments, leadership, and passionate commitment to patients, employees and health care," said HPH board Chairwoman Karen Chang in a press release. "The board is confident that with Ray Vara, the leadership team, physicians and employees, Hawaii Pacific Health will ably meet challenges and opportunities to continue its mission of meeting the health care needs of the people of Hawaii."

She went on to thank Sted for leading significant changes in the organization, including the 2001 merger of Hawaii Pacific Health, implementation of an electronic health record system, and a vision to lay the groundwork for creating a sustainable health care system.

Sted, who has been with HPH for 15 years, has served as CEO for the past 10 years. Vara joined HPH in 2002 and was appointed president last year when HPH announced its leadership succession plan.

"I am proud we were able to choose my successor from within our own family," Sted said.

In addition to serving as the CEO, Sted has held leadership positions with Ernst & Young, Queen’s Health Systems and Bank of America Hawaii. He also has worked on community boards, including the state’s Public Housing Authority, Boy Scouts of AmericaAloha Council, Board of Water Supply and Bishop Museum.