In the 1988 gubernotorial election, Caperton defeated the Republican Party incumbent, Arch A. Moore, Jr He raised taxes and supported the passages of ethics, road-building and education bills. He was embarrassed when his wife divorced him and ran for state treasurer. In 1992 he faced a competition in the Democratic primary from Charlotte Pritt, a coal miner's daughter, but defeated her in the end. He defeated the Republican candidate, state agriculture secretary Cleve Benedict in the 1992 general election. He was constitutionally prohibited from running for reelection in 1996. As president of the College Board he is an important leader of the restructuring of the SAT college entrance test.