The Tánaiste has said that former FÁS Director General Rody Molloy was given a larger than necessary severance package because the Government wanted to move the organisation on and make sure it changed.
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Mary Coughlan said it was in the best interests of the organisation that Rody Molloy moved on.
She was speaking to the media at a conference in Dublin on corporate governance.
Mr Molloy retired on a pension of €111,245 per year and also received a once-off lump sum of €333,735 and two other separate payments of €55,622. He was also allowed to keep a car.
His departure in November 2008 came after months of criticism at the excessive expenses incurred by executives of FÁS.
The Tánaiste said his package was agreed following advice from her officials and under sanction from the Department of Finance.
Ms Coughlan added that his package in the context of his resignation was less than the package would have been if he was to be removed from the same position by the board.
She said she appreciates that people are annoyed about what happened.
When asked if the Attorney General had made a decision yet on whether Mr Molloy's severance package could be unpicked, Ms Coughlan said Paul Gallagher had made no final determination on the possibility yet.
