Francesca McDonagh, the outgoing Bank of Ireland chief executive, and Myles O'Grady, the former Chief Financial Officer, had quit their jobs over pay cap limitations.

Paschal Donohoe, a politician from Ireland, said McDonagh was instrumental in driving a change in culture within the bank. She played a significant role in helping customers and the nation during the COVID-19 crisis.

According to reports, the Bank of Ireland's boss was irritated by the existing cap on executive pay and ban on bonuses.

McDonagh said: "The restrictions were out of step with reality at a bank that expects to return fully to private ownership this year. It made no sense for Irish banks to now have to compete for talent with one arm tied behind their back”.

AIB has lost two chief executives (David Duffy and Bernard Byrne) and two chief financial officers (Mark Bourke and O'Grady).

The message is clear: if Irish banks are to recruit and keep outstanding people, compensation limitations must be examined. The trouble for Donohoe is that it is still politically poisonous, not least because people are still reeling from the pandemic's gloom and are facing significant cost-of-living pressures. Any changes in banker pay rules would be exploited by Sinn Féin.

Change will be necessary at some point, but not before the next general election.