Magnus Groth is to replace Jan Johansson as president and chief executive of SCA as of 1 March.
Formerly president of the company’s European consumer goods unit, Groth has worked at SCA since 2011 and has extensive experience among other things as CEO of the listed company Studsvik.
On 10 February, Johansson stepped down following on-going aviation and hospitality audits.
The company has been in the spotlight over media allegations that include extravagant corporate perks including the use of private jets.
SCA confirmed that the audits are on-going but that they have not yet presented any reports.
A report in the UK’s Guardian newspaper said Johansson resigned after coming under increasing pressure after allegations that wives, children and even pets of board members had travelled on corporate jets.
SCA’s chairman of the board, Sverker Martin-Löf, will also resign; it is understood he is stepping down one year early following the media scrutiny related to his alleged use of the private jets and hunting trips.
A spokesman for SCA told TWM: “SCA’s board of directors has initiated special audits of the use of business aviation and corporate hospitality to be conducted by the company’s appointed auditors as well as independents.
“SCA has in addition already now changed its policy in respect of spouses and relatives accompanying on business aviation travel.
“Even where there is no extra cost to the company or if they pay for the travel themselves – which was the case in the previous policy, they are now not allowed to accompany in the business aviation under the new policy. And business aviation is not to be used for corporate hospitality.”
In a statement Johansson said: “The last months I have spent a large part of my time on the on-going audits related to SCA.
“A preliminary investigation has also started, which means that the ability to focus on the business has been further reduced.”
In the statement, SCA said: “The board regrets, but understands and respects that Jan Johansson cannot effectively lead SCA under the current conditions.
“The board would like to emphasise that there is no new information related to the on-going audits. The board has continued great confidence in Jan Johansson.”
The company was unable to comment further at this time.
SCA reported record profits in January 2015, with the group delivering its highest pre-tax profit ever, up 17% to SEK 10,888m year on year. Net sales rose 12% to SEK 104,054m.
Tissue posted a considerably higher operating profit for the fourth quarter of 2014 compared with the same period a year ago at 17% to SEK 1,867m, while sales growth increased 24%.
SCA has also significantly boosted its presence in Asia after it transferred its hygiene operations in China, Hong Kong and Macau to Vinda.
It also strengthening its geographical reach in Europe after it completed the acquisition of Georgia-Pacific’s European tissue business in 2012.
SCA executive vice president Mats Berencreutz retires
SCA has also announced its executive vice president Mats Berencreutz has retired on 1 March.
He leaves the group management and SCA.
The SCA spokesman confirmed Berencreutz’s retiring was not linked to the on-going audits and that he was simply retiring.