The packaging groups chief financial officer, Gary McGann, has been named as chief executive officer designate, while Smurfits son Tony will be president and chief operating officer.

Smurfit joined the group which was established by his father in 1952 before becoming joint managing director in 1966 and chairman and chief executive in 1977. He said that he had always intended to step down when he reached 50 years with the group.

In 2000 he oversaw the group recording its second best year of earnings, with pre-tax profits after exceptional items rising by 68%.

However, last year he came under fire from shareholders at the groups AGM for taking a 4.1m annual pay cheque (PrintWeek, 11 May 2001).