Exchange shifts on salary data rule

The salaries of public company directors may have to be disclosed, as the Irish Stock Exchange finally bows to pressure to look at its rules.

Following proposed guidelines from the Irish Association of Investment Managers (IAIM) and pressure from the Tanaiste, Ms Harney, the exchange issued a statement yesterday, stating it would now examine its disclosure rules. It is understood that a board meeting of the exchange - which includes representatives from the investment community and quoted companies - was unable to agree to implement immediately the suggested IAIM guidelines. These are that the pay of each executive director should be separately disclosed.

The exchange, along with several of the largest Irish companies, have long resisted full disclosure of directors' salaries. But the statement said it would now re-examine the guidelines and, with the Tanaiste apparently determined to push for full disclosure, sources believe the exchange will eventually have to accede.

There has been some discussion of a compromise stopping short of full disclosure, but Ms Harney, who has threatened legislation if the exchange does not comply, seems unlikely to compromise.

In Britain and the US, all publicly-listed companies are bound to disclose the salary and pension benefits of all directors. Irish companies, in contrast, have only had to disclose the aggregate amount.

Ms Harney says this is not sufficiently open and serves neither the public or shareholders' interests.

She has previously stated that if the exchange does not voluntarily change its position, she will legislate.

For its it's part, the exchange has argued that full disclosure could lead to security problems for individual directors.