The O'Reilly influence at the helm of Independent News & Media has been reinforced with the appointment of Mr Gavin O'Reilly as chief operating officer of the group.

Mr O'Reilly is a son of Independent executive chairman Sir Anthony O'Reilly and his appointment means the two most senior executive positions at Independent are now held by members of the O'Reilly family. Sir Anthony controls 28 per cent of Independent shares.

It also means that the various divisional chief executives - who previously reported directly to Sir Anthony - will now report to Mr O'Reilly who will in turn report to his father. As well as his new duties, Mr O'Reilly will retain responsibility for the Irish operations as chief executive, Ireland.

The divisional chief executives reporting to him are Mr Brendan Hopkins in the UK, Mr Vincent Crowley in Australasia and Mr Ivan Fallon in South Africa. Finance director Mr James Parkinson will, however, continue to report directly to Sir Anthony.

Effectively, an additional layer has been added to an Independent group management structure which has been in place since May last year when Sir Anthony became executive chairman of the group after the retirement of the then group chief executive Mr Liam Healy.

It was decided at the time that the vacant chief executive's position would not be filled and that Sir Anthony would stay as executive chairman for at least five years. But while Independent sources played down the suggestion, Mr O'Reilly's elevation will inevitably intensify speculation that it is a prelude to his eventual appointment as group chief executive when his father gives up his executive role.

Another of Sir Anthony's sons, Cameron, is also a member of the Independent board. He was chief executive of Independent's operations in Australia until two years ago when he resigned to pursue private business interests. Sir Anthony's third son, Tony Junior, was appointed chief executive of the Wedgwood arm of the Waterford Wedgwood group earlier this year.