DR MICHAEL Smurfit is to appoint a new chief operations executive and president to the Jefferson Smurfit group.

The new executive will take on a similar role to that held by Mr Howard Kilroy, who retired as its president and chief operations director last year.

Speaking at the weekend, Dr Smurfit, who is chairman and chief executive of the Jefferson Smurfit Group, said the appointment of a senior executive was "being considered" but refused to indicate when it was likely to happen or if he had any candidates in mind.

The group is understood to have considered the appointment after a "rethink" of its management structure.

Nevertheless, the executive committee, set up to assist Dr Smurfit in the overall management of the group, will remain in place, with the new executive assuming many of Mr Kilroy's former responsibilities.

The decision to reinstate a chief operations officer and president at the Smurfit group follows two large acquisitions in the past 12 months.

The group has also stepped up its efforts to improve investor relations and it is understood that the new executive would play a key role in this area.

Dr Smurfit stressed, however, that he will not be giving up his executive chairman's role. "There can be only one man running a company," he said.

Institutional investors have been calling for such an appointment for some time, urging Dr Smurfit to separate the roles of chairman and chief executive. They have also raised their concerns at the number of Smurfit family members on the group's board.

One institution, Standard Life, had recently written to Dr Smurfit highlighting its corporate governance guidelines, a main feature of which is the separation of the roles of chairman and chief executive.

In a separate interview, Dr Smurfit stated that he would leave the company if it were taken over. I wouldn't be bloody minded about it ... but I couldn't work in that environment. I would start off in business with my family and probably become a competitor to Smurfit," he said.