The Taoiseach has told bank bosses to take "significant and major" pay cuts within a matter of weeks.

It comes after Enda Kenny came under fire in the Dáil over the €840,000 pay package of Bank of Ireland boss Richie Boucher which is being voted through at the bank AGM today.

"Now if ever someobody was correctly named it is the bould Richie" declared Mary-Lou McDonald during Leaders Questions.

The Sinn Féin deputy leader asked Enda Kenny how he can look public servants in the eye "when his approach is so heavy handed with them...demanding cuts in wages and decrease in standard of working life and at the same time you are oh so gentle, so gentle and so generous with Richie Boucher".

But the Taoiseach insisted that Mr Boucher and other bank bosses would be taking pay cuts within weeks.

"Minister Noonan made a recommendation following the Mercer report to Government for banks to reduce their cost base by between 6 and 10% and in the next two weeks he expects to receive the response to that recommendation from these banks with a substantial contribution from bank leadership with regard to pay and pensions" Enda Kenny told the Dáil.

Finance Minister accused of "cowardice"

But because the Government is abstaining on the vote of Mr. Boucher's package at the AGM, Mattie McGrath accused the Finance Minister of being a coward.

"Is he going to stand over this cowardice of Minister Noonan. Will you stop this outrageous charade?" he asked the Taoiseach.

And Mr. Kenny replied that Minister Noonan is attending the AGM but "because it's his understand that the recommendation made ... that there will be a substantial and significant contribution from bank leadership, he's made his decision in that regard, and I expect that to be a significant and major contribution and it's right that it should be because these are extraordinary salaries".

Watch the Dáil debate on Richie Boucher's pay packet: