Landsbankinn, an Iceland-based banking group, has engaged Steinthor Palsson to replace Asmundur Stefansson as CEO of the bank. Mr Palsson will take up the position on June 1, 2010.

From 1986 to 1989, Mr Palsson was managing director of the debt financing department of Verzlunarbanki Islands. Between 1990 to 2000, he held various positions with Islandsbanki, including head of the credit department, investment loans of branch services, risk management and corporate services, in addition to an active part in policy formulation work and the merger process of Islandsbanki with its predecessor.

Between 2001 to 2002, he was CFO and manager of operations of biotechnology company Urour, Veroandi og Skuld.

From 2002 to 2010, he was managing director of Actavis in Malta, managing director of Actavis in the US and, for the past two years, managing director of policy formulation for the Actavis Group in Iceland.

Gunnar Helgi Halfdanarson, chairman of the board of Landsbankinn, said: “Steinthor has a great deal of management experience and possesses the qualities the board sought for. The aim was to find a CEO with leadership skills and solid business sense combined with banking experience; a person who could work well with the bank’s customers, its board and employees.

“The board of directors places tremendous importance on appointing a powerful and competent executive who can lead Landsbankinn as the bank endeavors to regain its place as the key financial institution in Iceland.”

Mr Palsson said: “I am quite aware that times are hard for Icelandic business and industry and that Landsbankinn’s activities are important to economic recovery. In my opinion, the bank has a great deal of capital in its employees and is in a position to accept the responsibilities it is entrusted with. I look forward to getting to know the bank’s employees and join them in working towards growth and prosperity.”