SMURFIT Group is under no pressure from institutional shareholders to split the role of chief executive and chairman according to Dr Michael Smurfit, who holds both positions.

No decision has been made on replacing Mr Howard Kilroy, who stepped down as chief operations officer last year, according to Dr Smurfit, who was giving the business lecture at the president's dinner of the Chartered Association of Certified Accountants at the Royal Hospital Kilmainham last night.

"I plan to continue my present responsibilities as long as I am blessed with good health and continue to enjoy it," he told the assembled mass of accountants.

Speaking before the lecture, Dr Smurfit refused to be drawn on whether the company was finding it difficult to locate a suitable replacement for Mr Kilroy.

Referring to Smurfit's free falling share price, Dr Smurfit said: "I don't get worried about the daily, weekly or monthly moves in our share price. Our industry is long term. Forests take many years to plant and grow, and machines can last a minimum of 25 years.

"Our job is to outperform our competitors. Over the long term, the share price has done exceptionally well," he added.

Speaking to journalists before last night's address, Dr Smurfit said that the board of Smurfit had not decided on the issue of a replacement for Mr Kilroy. He said that, at the time of Mr Kilroy's departure, the group had made no commitment on a replacement.

In a recent interview, Dr Smurfit indicated for the first time that the group was considering replacing Mr Kilroy by appointing someone who would take a similar role in the organisation. The appointment was "being considered" he told a British newspaper. Whatever happens, the executive committee set up to assist Dr Smurfit after Mr Kilroy's departure will remain in place.

Smurfit has suffered an 11p decline in two days after US analysts downgraded paper stocks worldwide. The paper analysts, led by Merrill Lynch, have decided - that the fundamentals in the sector do not support a rally.

Traders said the recent rally in paper stocks was caused by a Paine Webber report that destocking was nearly complete in the `A' paper grade and the stocks were a "buy". However, Merrill has now said the bullishness was overdone and the outlook isn't particularly favourable.

Also adding to the bearish view on the stocks was a trading statement form Scandinavian paper company, SCA, which said the near term outlook was not very favourable.

Some Smurfit shareholders have been calling for the appointment of a replacement for Mr Kilroy. One institution, Standard Life, wrote to Dr Smurfit recently, highlighting corporate governance guidelines, a main feature of which is the separation of the roles of chairman and chief executive.