SCA’s CEO steps down after media scandal

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Swedish giant SCA announced on Tuesday that Jan Johansson, the President and CEO of the company, will step down from its positions, following a recent scandal in Sweden. SCA was in the spotlight over media allegations of extravagant spending by management on foreign travel and on hunting trips in northern Sweden.

Recently, the Swedish newspaper Svenska Daglabet has launched a journalistic investigation revealing how SCA's corporate jet was used for several weeks by wives and children of board members to fly to a company hunting lodge, football games and the Olympics.

Also, a criminal investigation and two special audits of the corporate flights were launched in Sweden on the allegations. Jan Johansson said that due to these investigations, his ability to focus on the business has been reduced, as in the last months he spent a large part of his time dealing with the audits. 

"The decision that the Board and I have reached in the interest of SCA, our shareholders, employees and my family is that I step down as president and CEO," Mr Johansson said on Tuesday night.

Now Magnus Groth has been appointed as new President and CEO by SCA's board of directors. Groth is currently President of SCA's Business Unit Consumer Goods Europe and has previously among other things been CEO of a listed company. The decision is effective March 1. 

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