The lender attributed his departure to the €500,000 (£426,670) pay cap imposed on banking executives in Ireland since 2009.
Francesca McDonagh, group chief executive of the Bank of Ireland, said: “Myles’ decision to leave the Irish banking sector 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. The normalisation of our operations is now vital to the long-term sustainability of the indigenous banking sector.”
O’Grady will leave his role in March next year and the process to find his successor has begun.
He will also step down as executive director.
O’Grady joined the bank in June 2019 as finance director Ireland before he was appointed as CFO in October that year. He joined the board in January last year.
McDonagh said: “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.
“I want to personally thank Myles for his unwavering support and wish him the very best for his future.”
Patrick Kennedy, chairman of the Bank of Ireland, added: “For the last two years, Myles has been an integral part of the Bank of Ireland board and group executive team. His focus on growth and strong cost discipline has enhanced the group’s long-term sustainability. I wish him well for the future.”
Meanwhile, the lender reduced its intermediary sales team following a consultation in the summer, resulting in the planned exit of its intermediary boss, Iain Smith, in a few months’ time.
The bank said there have been no compulsory redundancies and effort has been made to redeploy personnel where possible.