Irish Life Investment Managers is to join Aberdeen Asset Management in voting against the re-election of five directors to the Jefferson Smurfit board in protest at Dr Michael Smurfit's €6.6 million (£5.2 million) pay package.

Irish Life Investment Management holds a 2.6 per cent stake in the Jefferson Smurfit group with a market value of around £46 million. Aberdeen Asset Management holds a further 2 per cent of the Jefferson Smurfit group. A number of other Irish fund managers are understood to be still deciding on their stance ahead of the company's annual general meeting on Friday.

The five directors seeking re-election are Mr Dermot Smurfit, Mr Howard Kilroy, Mr Martin Rafferty, Mr Albert Reynolds and Ms Mary Redmond.

Aberdeen Asset Management is voting against the company's financial statements as well as the directors' re-election in protest at Dr Smurfit's remuneration which is among the highest ever granted to an Irish executive.

Shareholders are not being asked to approve Dr Smurfit's €6.6 million pay deal in a separate motion at the a.g.m. Irish investment institutions have reduced their holdings of Irish companies in recent years and collectively hold up to 25 per cent of the Jefferson Smurfit group. Around 40 per cent of the company is held by US investment institutions which are understood not to be as upset about Dr Smurfit's package.

The Irish Association of Investment Managers, the industry body for Irish investment institutions, has previously waged a behind-the-scenes battle with the company over the level of Dr Smurfit's pay package.

In that instance, the company agreed to scale back his remuneration.

Industry sources suggest the Irish fund managers are particularly incensed at the current pay deal and a number of them are delaying sending in their votes on the various motions while they decide on their position.

The protest is a new departure for Irish public companies. Until now, fund managers generally voiced their concerns with companies privately rather than voting against the re-election of directors. UK fund managers have recently delivered a similar response to what they consider to be excessive pay deals for executives.