Bank of Ireland blames Ireland’s salary cap as CFO announces departure

Dublin — Bank of Ireland condemns state-imposed restraints on banker payments and bonuses against Monday’s announcement that Chief Financial Officer Myles O’Grady will leave the bank for roles outside the financial sector bottom.

Ireland limited executive compensation to € 500,000 ($ 552,300) annually during the most expensive bank bailout period in the euro area over a decade ago. It bans all forms of variable salary and benefits, even for junior bank staff, and the restrictions that lenders complain about prevent them from attracting and retaining talent.

Bank of Ireland CEO Francesca McDonagh said on Monday that this would bring a competitive disadvantage to other similarly unrestricted companies and stock exchange associates, making it the country’s largest bank of assets. Said left.

“Miles’ decision to leave the Irish banking sector highlights the challenges for pay limits to attract and retain talent for Irish banks,” McDonald said in a statement.

“Normalization of our operations is now essential to the long-term sustainability of the indigenous banking sector,” she said.

According to the bank, Mr. O’Grady will remain in his position until the expected exit in March 2022. Andrew Keating, O’Grady’s predecessor, left the bank two years ago and held a senior finance position at the Irish building materials supplier CRH.

In 2018, former Allied Irish Bank Chairman Richard Pim described the Bank of Ireland as a training ground for rivals after the Bank of Ireland lost its CEO and Chief Financial Officer within a few weeks.

The Irish government, which has invested € 64 billion in banks after the 2008 global financial crisis, or nearly 40% of its annual economic output, says it has no plans to ease regulations.

It still holds a majority stake in AIB and Permanent tsb and sells a 12% stake in Bank of Ireland.