World Economic Forum absolves founding figure Schwab of misconduct; designates temporary joint leaders
The World Economic Forum (WEF) has concluded an independent investigation into allegations of misconduct against its founder, Klaus Schwab, and his wife, Hilde Schwab. The probe, commissioned by the WEF and carried out by a reputable law firm, found no evidence of serious wrongdoing or misconduct against either Klaus or Hilde Schwab [1][2][4].
The investigation was initiated in April 2022 following a whistleblower letter that raised concerns about the WEF's governance and workplace culture [5]. The inquiry uncovered minor irregularities stemming from blurred boundaries between personal contributions and Forum operations. The WEF board characterised these irregularities as reflecting a deep commitment rather than an intent to misconduct [4].
In response to the findings, the WEF has taken steps to resolve the identified issues and strengthen its governance [4]. Klaus Schwab had stepped down as head of the WEF board of trustees in April 2025, prior to the investigation's conclusion [1][2][4]. The appointment of Larry Fink, CEO of BlackRock, and André Hoffmann, vice chairman of Roche Holding, as interim co-chairs marks a leadership transition aimed at guiding the Forum through a complex global landscape while reinforcing the WEF's mission to foster international cooperation and sustainable prosperity [1][3][5].
Following the conclusion of the probe, Klaus Schwab intends to drop his lawsuit against the WEF and a separate legal action against anonymous whistleblowers [3]. Larry Fink and André Hoffmann, the newly appointed co-chairs, have expressed their intentions to reinvent and strengthen the organization [3].
The WEF's annual gathering in the Swiss mountain resort of Davos, symbolising globalization, has drawn criticism from opponents as an elitist talking shop detached from the lives of ordinary people [1]. For decades, Klaus Schwab has been the face of the WEF's annual gathering [6]. The Schwab family has denied all the allegations in the whistleblower complaint [7].
The World Economic Forum is a Geneva-based organisation [8]. The WEF announced the investigation a day after Klaus Schwab resigned as chairman, without specifying a reason [1][2]. No new fact was provided regarding the findings of the investigation on Hilde Schwab or the reason for Klaus Schwab's resignation as chairman [1][2][4][7]. Peter Brabeck-Letmathe stepped down as interim chairman of the WEF following the investigation's conclusion [9].
References:
- BBC News
- The Guardian
- Reuters
- WEF Press Release
- The Wall Street Journal
- CNN
- The New York Times
- World Economic Forum
- Bloomberg
- Amid the resolution of the investigation, Larry Fink and André Hoffmann, as interim co-chairs of the World Economic Forum (WEF), aim to redefine and reinforce the organization's business strategies, focusing on international cooperation and sustainable prosperity.
- Klaus Schwab, stepping down as head of the WEF board of trustees in 2025 before the investigation's conclusion, intends to withdraw his lawsuit against the WEF and legal action against anonymous whistleblowers, paving the way for a fresh start in finance and leadership at the Geneva-based organization.
