個案資料

Few business leaders will ever confront the challenge that Landsbankinn CEO Steinthór Pálsson faced in mid-2010, when he attempted to rebuild Iceland’s oldest full-service financial institution. After the nation’s banking industry collapsed two years prior, the government seized control of a greed-dominated sector. Excessive leverage and aggressive expansion, combined with inadequate risk management and, in some cases, criminal executive behaviour, brought the country near bankruptcy. Angry citizens protested against massive personal and corporate losses and change was demanded, especially at Landsbankinn. Over the past four years, Pálsson has systematically restructured Iceland’s oldest bank. In this interview, the change management expert discusses Landsbankinn’s restructuring strategy and why he took a significant pay cut to take on what appeared to be an impossible task. Pálsson opened up all senior management positions at the bank to internal and external competition and took out ads in major newspapers promising to restructure customer loans and improve governance. Despite bank employees facing threats and physical attacks, he preserved the bank’s brand. He emphasizes the importance of allowing debate among his senior team and says, “Good ideas are worth one point and a good plan is worth 10 points, but good execution is 100 points.”

• Financial market risk management
• Ivey Interviews