the Irish Stock Exchange has urged each Irish publicly-quoted company to come up with "realistic alternatives" to the Tanaiste's suggestion that company directors should disclose their individual pay packages.

In a letter sent to each listed company, stock exchange chief executive Mr Tom Healy has invited submissions by the end of the month. The letter stresses it will be preferable to have a series of alternatives to propose to Ms Harney rather than risk the imposition of legislation on the issue.

"If the Tanaiste gives us an opportunity to negotiate on her preferred level of disclosure, we will need to have alternatives to propose," he says.

Mr Healy goes on to remind the companies concerned that the Tanaiste has the power to legislate on disclosure. Bearing this in mind, the stock exchange feels it is "significantly more desirable" that the issue be dealt with under its rules in a way that "satisfies" the Tanaiste. "We also believe that resisting change is not a realistic option, as it would likely result in legislation," Mr Healy adds.

The letter, seen by The Irish Times, was circulated earlier this month. It requests directors to keep its contents confidential. It was issued after the board of the stock exchange had considered guidelines issued by the Irish Association of Investment Managers on directors' remuneration.

Mr Healy noted that disclosure is a "very difficult" issue for the exchange and that it appreciated there are strongly held views on both sides.

The majority of company directors are vehemently opposed to the Tanaiste's proposals. Earlier this week, Irish Life & Permanent became the first major public company to disclose voluntarily the remuneration packages of its senior management team.