Bank of Ireland blames pay cap for CFO departure

Myles O'Grady

Ellie Donnelly Twitter Email

September 27 2021 07:22 AM

The chief financial officer (CFO) of Bank of Ireland, Myles O'Grady, is leaving the group after two years in the role, as pay restrictions in the banking sector continue.

Mr O’Grady is taking up a senior finance position in an organisation outside the financial services sector, according to a statement from Bank of Ireland.

Mr O'Grady joined Bank of Ireland in June 2019 as finance director Ireland. He was appointed CFO in October 2019 – replacing Andrew Keating who joined CRH – and a member of the board in January 2020.

"Since joining Bank of Ireland, Myles has provided exceptional financial leadership to the group. He has helped steer the bank through the Covid-19 pandemic, overseeing a return to profitability in the first half of 2021,” Francesca McDonagh, Bank of Ireland's CEO, said.

Ms McDonagh said that Mr O’Grady’s decision to leave the banking sector here “highlights the challenge that remuneration restrictions represent for Irish banks in attracting and retaining talent.”

“The lack of a level playing field means Bank of Ireland is at a competitive disadvantage to other companies, corporates and PLCs who are not restricted in the same way. Any company in a similar position would highlight this as a serious challenge,” Ms McDonagh said.

“The normalisation of our operations is now vital to the long-term sustainability of the indigenous banking sector," she added.

The Government capped salaries at AIB, Bank of Ireland, and Permanent TSB at €500,000 following the State bailouts during the financial crisis. The banks have been lobbying for this to change for a number of years.

Earlier this year Bank of Ireland acquired stockbrokers Davy in a €440m deal.

Davy staff will continue to receive bonuses and remain eligible for salaries above €500,000 following the deal, after the Department of Finance agreed not to apply bank pay restrictions on the firm.