Tánaiste Eamon Gilmore says the Government has appointed consultants to advise on how pay levels at the Irish Bank Resolution Corporation could be cut.
Mr Gilmore told the Dáil that pay levels at senior level within IBRC, formerly Anglo Irish Bank, are unacceptable to the Government and the Irish people.
He said Mercer consultants are now assisting the Department of Finance and are working through the various options as part of an overall review of pay in the sector.
Sinn Féin's Mary Lou McDonald had claimed that IBRC Chairman Alan Dukes had told the Government to "get lost" when Minister for Finance Michael Noonan sought to reduce top pay at the bank in April.
She was questioning Mr Gilmore about the revelation that six executives in IBRC were earning over €500,000.
The Tánaiste was also asked about the pensions that are paid to some former bankers, and in reply, he claimed that Fianna Fáil had approved some of the contracts involved.
He told People Before Profit TD Richard Boyd Barrett that the days of golden circles for current or former bankers are over.