After the second ballot at the nominating convention, both Bratton and Kennedy withdrew their names and Thompson became the Democratic candidate for the gubernatorial election of 1882.

[2][3] Thompson easily won the general election against J. Hendrix McLane and became the 81st governor of South Carolina.

Upon being appointed in 1886 by President Grover Cleveland to be Assistant Secretary of the Treasury, Thompson resigned as governor.

He retired from public service in 1892, and for over a decade was the comptroller of the New York Life Insurance Company.

[2][3] On November 20, 1904, Thompson died in New York City and was buried at Trinity Episcopal churchyard in Columbia.