Klaus Schwab, the founder of the World Economic Forum (WEF) in Switzerland, announced his resignation as non-executive chairman of the organisation effective on Monday.
Schwab, 87, said the forum needed to regain its “sense of mission” after the “turmoil of recent months.” He did not give a timeline for his departure from the organisation, but the WEF said the process should be completed by January 2027.
The forum’s founder said he would propose a successor to the board of trustees in due course.
Schwab’s decision to resign came a day after the US trade war and the rising tariffs caused havoc in the markets and the global trading system.
However, the real reason for his departure turned out to be more interesting.
Schwab’s announcement comes amidst a scandal that started back in June 2024. At that time, The Wall Street Journal reported that employees of the organisation accused the founder of the forum and other management of discrimination and inappropriate treatment of women.
An anonymous letter that was sent to the WEF Board of Trustees could also be the reason for Schwab’s resignation. It says that Schwab used WEF funds for his personal needs: at his suggestion, the organisation’s employees withdrew money from ATMs on his behalf, while Schwab and his wife spent the forum’s money on luxury trips and luxury real estate.
Schwab’s wife, Hilda, organised “symbolic” meetings within the forum, which served as a cover for expensive trips with WEF money.
The WEF Board of Trustees has launched an investigation, but so far the allegations have not been confirmed. Klaus Schwab himself denies everything. He resigned “suddenly” exactly the day after the letter was discussed at an emergency meeting of the WEF trustees.
Schwab founded the WEF on January 24, 1971. The forum was designed as a discussion platform where representatives of global financial elites and government leaders could discuss prospects and successes in building a new world order. The event is held annually in winter in the Swiss city of Davos.
