David Went's decision to reveal directors' pay should be copied

David Went is unlikely to be on Paddy Galvin's Christmas card list this year following his decision to break ranks with his fellow plc directors and produce a detailed breakdown of Irish Life's directors' pay in the annual report published this week. But the move by the now Irish Life & Permanent boss to bring his company's financial reporting into line with what is required by the investment community is a welcome development and one that this column has pressed for.

It is understood that the catalyst for the breaking of ranks by Irish Life was the change in policy by the Irish Association of Investment Managers and the comments by the Tanaiste that if the Stock Exchange and its member companies did not bring in full disclosure of directors' remuneration, then she would do it for them through legislation.

The arguments put forward by the Institute of Directors for maintaining the status quo of aggregation of directors' remuneration are fatuous. Company directors of public companies are going to have to face up to the reality that their shareholders have every right to know how much each director is paid, and how he/she is paid.

Sources close to Irish Life have indicated that David Went took the view that it was far better to do something voluntarily rather than be seen to be dragged kicking and screaming into a policy of full disclosure. It is also understood that he strongly urged IBEC not to become allied with the Institute of Directors in opposing full disclosure.

Of the big public companies, Bank of Ireland is next to produce its annual report and has plenty of time to follow Irish Life with full disclosure of what its directors are paid.