Iceland’s Íslandsbanki has called for nominations to its board of directors just seven days after shareholders elected a new board. The bank’s nomination committee announced the search for candidates on Wednesday. A new board will be elected at the bank’s annual general meeting on March 19, 2026, exactly two months after the current board was voted in on January 19, 2025. The swift succession of board elections points to ongoing governance turbulence at one of Iceland’s cornerstone financial institutions.
The nomination committee plays an advisory role regarding board elections, according to a statement from Íslandsbanki to the Nasdaq Iceland exchange. At shareholder meetings where board elections are on the agenda, the committee presents reasoned proposals for candidates it deems best suited for a seat. This committee nominated the seven individuals who were unanimously elected to the board at Monday’s meeting, including newly appointed Chairman Heiðar Guðjónsson.
A Meeting Born From Shareholder Demand
That January meeting was itself held at the demand of a shareholder group led by Heiðar Guðjónsson, which called for a board election. The March annual general meeting was already scheduled when Heiðar’s group demanded the January gathering, and it was understood a board election would also occur at the March AGM. The rapid launch of a new nomination process for that same AGM, however, creates an unprecedented sequence of events in modern Icelandic corporate history.
“The nomination committee wishes to solicit applications for the board of Íslandsbanki to be elected at the bank’s annual general meeting on March 19, 2026,” the bank’s latest statement reads. Applications must be submitted to the nomination committee via a special form on the bank’s website by 16:00 on February 4, 2025. The committee stated it will not consider applications received after that deadline. The committee plans to publish its proposal alongside the notice of the annual general meeting or, at the latest, three weeks before the AGM.
Scrutiny on Corporate Governance
This development places Íslandsbanki’s corporate governance under a microscope. The bank, a pivotal lender in Iceland’s economy with deep ties to the fishing and geothermal energy sectors, requires stable leadership. Frequent board elections can signal shareholder discontent or strategic disagreement at the highest level. The nomination committee’s call so quickly after the last vote suggests the January election may have been an interim solution, or that significant shareholders seek a different composition for the long term.
The process raises practical questions. Potential candidates, who must undergo fit and proper assessments by the Financial Supervisory Authority of the Central Bank of Iceland, now have a compressed timeline to declare interest. The table below outlines the tight electoral calendar facing the bank and its shareholders.
| Event | Date | Key Detail |
|---|---|---|
| Current Board Elected | January 19, 2025 | Seven members, including Chairman Heiðar Guðjónsson, elected. |
| Nomination Process Opens | January 26, 2025 | Committee calls for applications for the next board. |
| Application Deadline | February 4, 2025 | All candidate materials must be submitted by 16:00. |
| Committee Proposal Published | By late February 2026 | To be released with AGM notice or three weeks prior. |
| Next Board Election | March 19, 2026 | At the Annual General Meeting. |
The Broader Context for Icelandic Finance
Iceland’s banking sector has worked for over a decade to rebuild international trust following the catastrophic 2008 financial crisis. Stability and transparency in board leadership are cornerstones of that effort. This rapid-fire election cycle at Íslandsbanki will be watched closely by international investors and credit rating agencies who monitor Icelandic financial resilience. The bank’s performance directly impacts financing for key national industries, from the capelin fleet in the Westfjords to aluminum smelters in the south.
There is no public indication from the nomination committee on why a new search was launched immediately. The statement adheres strictly to procedural announcements. Shareholders, including pension funds and the Icelandic state, which holds a significant stake, now face a year-long period of uncertainty regarding the bank’s ultimate leadership direction. The March 2026 AGM will be a definitive moment, but the coming weeks will reveal who puts their name forward for the crucial oversight role.
A Year of Decision Ahead
The next twelve months will serve as an extended review period for the freshly installed board. Their performance and strategic decisions will unfold under the knowledge that a parallel process to potentially replace them is already underway. This unique situation creates a complex dynamic for both management and directors. For Reykjavik’s financial community in districts like Miðbær and Höfði, the saga is a primary topic of discussion, highlighting the interconnected nature of Iceland’s small but dynamic corporate landscape.
The ultimate test will be whether this process leads to a stronger, more unified board capable of steering Íslandsbanki through future challenges, or if it perpetuates a cycle of instability. The nomination committee’s recommendations next year will carry immense weight, potentially setting the course for Iceland’s second-largest bank for years to come.