Minister for Public Expenditure and Reform Brendan Howlin has said that the salary paid to Bank of Ireland Chief Executive Richie Boucher does "jar" with him.
Minister Howlin also said he can understand how it would jar with the public, but he said change is a slow process.
It emerged last night that Mr Boucher's basic salary is €123,000 above the banker salary cap of €500,000.
With benefits, his package is worth €831,000, prompting calls from the Opposition to have it cut.
Minister Howlin was asked this morning if the level of pay 'jars' with him.
"It does, in truth," he responded.
"We set the standard when we came into office. We decided that the Taoiseach should be paid no more than €200,000.
"That has migrated through all the civil service and there is no civil servant earning more than that rate now.
"And we have migrated that into the semi-state sector as well."
Meanwhile Fine Gael TD Liam Twomey called on bank bosses to sensitive to the public mood when it comes to salaries, saying the revelations around Mr Boucher's remuneration levels have left a sour taste in the mouth of the taxpayer.
"This is the sort of thing that gives an incredibly bad impression," he said.