AIB chief financial officer Donal Galvin is to leave the bank, raising fresh questions about bonus restrictions at the lender.Galvin will leave to pursue “other business opportunities”, AIB said in a statement on Wednesday. He stepped down from the board on Tuesday but will stay with the bank “to ensure a smooth handover of responsibilities” including for its half-year results announcement, scheduled for July 30th.“Donal has made a significant contribution to the group during his 13 years with AIB,” chief executive Colin Hunt said. “He played a key role in the return of AIB to full private ownership and the repayment of €21 billion to the Irish State. He has greatly advanced the financial resilience and capital strength of the group.”“The time is right for me personally to pursue other career opportunities, and I am pleased to leave AIB in such a strong financial position,” Galvin said in the statement.AIB shares fell 0.8 per cent after the announcement of Galvin’s departure. A process to appoint a permanent successor will commence immediately.Galvin joined the bank in 2013 as group treasurer before becoming chief financial officer (CFO) in 2019. Before AIB, he had held senior positions in Rabobank and Mizuho Securities, among others. He joined the AIB board in 2021. “During his tenure, Galvin oversaw a marked strengthening of AIB’s capital base,” Goodbody analyst Denis McGoldrick wrote in a research note. “He played a central role in enhancing balance sheet resilience, underpinning consistent CET1 strength and delivering a credible capital return story in public markets. His stewardship also improved AIB’s positioning with equity and debt investors alike, with stronger capital discipline and transparency contributing to a re-rating of the franchise.”[ AIB new lending grows 11% as bank sees ‘very little’ Middle East impactOpens in new window ]Galvin’s decision to leave was not expected, and is likely to be seen as evidence of the damage continued restrictions on pay are having on Irish lenders’ ability to retain staff. While the Government has lifted a €500,000 limit on salaries for top executives at the former State-owned lender, bonuses of more than €20,000 are still subject to an 89 per cent super tax. That can only be removed by statute, making it more difficult to do so. “Pay constraints in the domestic banking system have long featured as a challenge to executive retention,” analysts at Davy Stockbrokers including Diarmaid Sheridan wrote in a research note. “The regulations governing variable remuneration from the European Banking Authority have strengthened significantly since the special bonus tax was introduced.”Galvin is likely to be in demand for a new role. Mark Bourke, his predecessor as AIB CFO, moved to Portuguese lender Novobanco in 2019 before becoming chief executive in 2022.