Health Minister Dr Jonathan Coleman is yet to name Mr Butterfield's replacement, but said in a statement this week it was time for the role to go to someone who could serve for the next few years.
Mr Butterfield, of Timaru, has said he is comfortable with the decision, and felt he had served long enough.
He has had four years in the role. Mr Ward said Mr Butterfield's dedication to the role was demonstrated through the extensive travel he undertook for it.
He led by example by never ''shirking'' from responsibilities and always acknowledging the board's challenges.
After the meeting, board member Dr Branko Sijnja told the Otago Daily Times Mr Butterfield's ''bombastic'' style initially hit board members ''like a bombshell''.
However his skill at handling meetings soon became apparent.
He allowed everyone a say, and no-one was able to dominate.
''He's put his own brand of chairmanship on to it.
''Coming in as an outsider, a Timaru man, he's actually served us very well and got very close to understanding our community.''
Board member Richard Thomson said Mr Butterfield put a lot of energy into the role and, while the pair sparred at times, he greatly enjoyed working with him.
Chief executive Carole Heatly said in a statement it had been honour to work with Mr Butterfield, and she had benefited from his extensive knowledge of the health system.
Health unions are watching the situation to see what the change signals for the health board.
Association of Salaried Medical Specialists executive director Ian Powell told the ODT Mr Butterfield's departure should send a message to senior management.
It was hoped Dr Coleman would seek a replacement who would ''do something'' about concerns senior management had a poor relationship with doctors.
The management style was top-down, and doctors were sometimes used as scapegoats, he said.
New Zealand Nurses Organisation health board organiser Lorraine Lobb said she would be watching ''to see what happens next''.
Asked about speculation the next chairman would have a more operational focus, Ms Lobb said it was difficult to know how that would work, because usually management was separate from governance.
