Mr Don Brennan will remain on the board of Jefferson Smurfit Corporation, Smurfit's US affiliate, following his resignation as chairman, president and managing director of Morgan Stanley Capital Partners. He decided to resign because Morgan Stanley's funds were "half-way through the five-year investment cycle, and (he) considered this the ideal time to step down and give his colleagues the opportunity of having a two-and-a-half-year track record", according to a spokesperson. As he wanted to spend more time with his family, he did not want to remain "for another three years".

Morgan Stanley Capital Partners is the merchant banking subsidiary of US financial services company Morgan Stanley Group. It was an equity investor in Waterford Wedgwood in a consortium that included Dr Tony O'Reilly, before reducing its stake from 15 per cent to around 5 per cent.

Mr Brennan (55) is a former chairman of Waterford Wedgwood and was a member of a special committee set up by former Taoiseach Mr Albert Reynolds to encourage investment in Ireland. He joined Morgan Stanley in 1982 from International Paper, where he was vice-chairman.

He will remain in Morgan Stanley as an "advisory director", a part-time position, traditionally held by former managing directors. Apart from JS Corp, he will remain on the boards of Fort Howard Corporation and SITA Telecommunications Holdings, three of the firm's most significant portfolio companies, Morgan Stanley said.

Mr Brennan, who was replaced by Mr James Allwin, was unavailable for comment yesterday.