MR Michael Smurfit junior has been appointed president and chief executive officer of the US subsidiaries of the Jefferson Smurfit Group following the retirement of Mr James Malloy.
Mr Smurfit, who will be 31 next week, is a son of the group chairman and chief executive Dr Michael Smurfit. Mr Smurfit junior was appointed president and chief executive officer of Smurfit Packaging Corporation and Smurfit Paperboard Inc, with effect from January 1st.
Sixty eight year old Mr Malloy retiring from his executive positions in the US but will remain on the board of the group. Mr Michael Smurfit junior has not been appointed to the board.
Market sources expressed surprise at the announcement which gave no detail about the previous experience of Mr Smurfit junior. It is understood that he has been with the group for about eight years, most recently as vice president world purchasing. He has been based in the US for some time and has a Master of Business Administration qualification from Michael Smurfit Graduate School of Business at University College Dublin.
The US subsidiaries of the Jefferson Smurfit Group have an annual turnover of about £174 million and employ about 1.000 people. However, the bulk of Smurfit's US interests are held though its 46 per cent owned associate company Jefferson Smurfit Corporation.
The latest announcement follows the appointment last September of Mr Tony Smurfit, another son of the chairman, as deputy chief executive of Smurfit France. Thirty two year old Mr Tony Smurfit is on the board of the group. Four out of the 15 directors on the group board are members of the Smurfit family executive directors, Mr Michael Smurfit hf brothers, Mr Alan Smurfit and Mr Dermot Smurfit and his son, Mr Tony Smurfit.
Last year, eight executive directors of the Smurfit group, including Mr Malloy shared
£7.1 million in pay and pension contributions, an average of £900,900 per person. The remuneration was boosted by a 49 per cent jump in performance related payments to £3 million. The remuneration did not include dividends paid on group shares Mr Malloy received dividends of £195,000.
