DUBLIN—Bank of Ireland blamed state-imposed curbs on bankers pay and bonuses for the announcement on Monday that Chief Financial Officer Myles O’Grady would leave the bank for a role outside the financial sector. Ireland capped executive pay at 500,000 euros ($552,300) a year during the euro zone’s costliest banking rescue more than a decade ago. It banned all forms of variable pay and fringe benefits for even junior bank staff, restrictions lenders complain impedes them in attracting and retaining talent. Bank of Ireland Chief Executive Francesca McDonagh said on Monday this had left the country’s largest bank by assets at a competitive disadvantage to other companies and fellow members of the stock exchange which are not restricted in the same way. “Myles’ decision to leave the Irish banking sector highlights the challenge that remuneration restrictions represent for Irish banks in attracting and retaining talent,” McDonagh said in a statement. “The …