Earlier this week the Government announced it will provide €3.5bn for Bank of Ireland and Allied Irish Bank in return for preference shares with a fixed dividend of 8 per cent payable in cash or ordinary shares.
Total remuneration for senior executives will be cut by at least 33 per cent, no bonuses will be paid for these executives and no salary increases will be made for 2008 and 2009.
The Government will appoint a quarter of the directors of each bank and will also get a quarter of ordinary voting rights at board meetings.
Mr Lenihan announced that both AIB and Bank of Ireland had accepted that the pay of senior executives will be curtailed.
The Government is not insisting on any immediate resignations from the banks' boards or senior management in the deal.