Speculation is rife that James Hardie chief operating officer Louis Gries could soon take charge at the former asbestos manufacturer.

After 13 years with Hardie, Mr Gries is seen as chief executive Peter Macdonald's logical replacement if he bows to pressure to stand down.

Mr Gries had driven Hardie's hugely successful expansion into the United States, where it now generates 75 per cent of its sales.

Hardie is being investigated after an inquiry this week found it underfunded a compensation fund for victims of asbestos disease and made misleading statements about the fund.

Deutsche Asset Management's Vince Pezzullo said yesterday that, with Mr Macdonald's attention diverted from normal duties as he defended himself at the NSW special commission, the strength of Hardie's US business showed the company would be in good hands without him.

Mr Macdonald has become Australia's most elusive chief executive. Following the commission's finding that he could face criminal charges, he has not made any comment over his role in what is becoming one of the biggest corporate scandals in Australian history.

But despite calls from asbestos victims' groups, shareholders and unions for Mr Macdonald's resignation, Hardie would not say where its chief executive was or whether he had any immediate plans to revisit Australia.

"He is operationally based in the (United) States and he's currently operational," a Hardie spokesman said.

Nor would the company say if its board had discussed the finding of commissioner David Jackson, QC, that members of Hardie's senior management had lied in February 2001 when they said the foundation to compensate asbestos victims was sufficiently funded.

The company recently reported a 29 per cent quarterly lift in US fibre-cement sales.

With pressure also mounting on chief financial officer Peter Shafron to go, there is talk that Hardie's head of research and development, Don Merkley and his twin brother Dave, Hardie's head of manufacturing, could be up for a promotion.

The ACTU yesterday criticised the conduct of investment banks that had stood by Mr Macdonald. A swag of brokers upgraded their recommendations on Hardie during the week, after the commission said it would be legally difficult for asbestos victims to sue the company. One of the most bullish assessments was by Macquarie Equities, which kept its valuation at $9.30. Hardie shares fell 7 ¢ yesterday to $5.88.

Despite the outrage at Hardie, one analyst said Mr Macdonald was an excellent manager.

"It's possibly too premature to be talking about his demise," said the analyst. "It's extremely difficult for the people who are sick but it's a very, very difficult situation for the management of the company," he said.