Rethinking Corporate Governance
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Rethinking Corporate Governance

The Forming of Operative and Financial Strategies in Global Corporations

Sven-Erik Sjöstrand

Rethinking Corporate Governance’s extensive and insightful empirical investigation offers a radically new approach to corporate governance. This ground-breaking volume describes and analyses the key nature-based and actor-based forces that ultimately determine corporate governance processes and long-term corporate paths. Generally, such forces work in complex and intricate interplays that to a large extent vary among corporations. The author argues that actions taken by individuals have a special status among those forces, as they not only generate impact in themselves, but also involve interpretations of the possible effects of all the other forces. Among those actions, the ones taken by the shareholders stand out as particularly decisive both for the governance processes as such and for how corporations develop over time.
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Chapter 10: From MoDo to Holmen: a consolidation period

Sven-Erik Sjöstrand


Already by mid-1993 there were rumours spread by the Swedish business press that MoDo’s CEO Löf was to be replaced. One could read that one of the three major shareholders demanded his retirement. However, in a meeting with Löf, SCA’s Chair Rydin made clear that the rumour was false, and that the journalists’ articles were plain speculations not founded on facts. In that situation, MoDo Chair Önnesjö wanted to see a denial from the board in the form of a communiqué. Rydin sought wording by which MoDo refuted both a change of CEO and discussions addressing that topic, and accepted – considering the on-going equity offer – also a sentence confirming full confidence in Löf. However, rather soon after that public denial, circumstances changed and the search for a new CEO began. Ten years as MoDo’s CEO had made Löf rather jaded (he had reached the age of 60) not least because of the company’s troublesome shareholder structure. Moreover, he was first and foremost a strong supporter of fine paper capacity, and that business was not unchallenged any longer as the preferred path into the future. Added to that, the problems with Alizay had not strengthened his position.

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