The World Economic Forum (WEF), the organisation behind the annual WEF meetings of global leaders in Davos, Switzerland, has cut ties with its founder Klaus Schwab after a series of accusations of alleged professional misconduct.
Schwab reportedly also threatened members of the WEF’s board of trustees after they had recommended an investigation into some of the allegations.
Schwab suddenly resigned as WEF chairman on April 21. Swiss newspaper NZZ reported that his resignation had been demanded unanimously by the 27 members of the WEF’s board of trustees after they had been made aware of the alleged threats.
Following the resignation, Schwab’s picture was removed from the WEF website. He has also reportedly been banned from entering his former workplace near Geneva, Switzerland.
The 87-year-old Schwab had already withdrawn from the daily management of the WEF in January 2025 but had announced plans to stay on as chairman until 2027. That was reportedly to install Christine Lagarde as his preferred successor. Lagarde’s term as President of the European Central Bank (ECB) ends in 2027.
The WEF has a turnover of almost €500 million and 1,000 employees worldwide.
As has been revealed, Schwab’s stepping back from daily management was also the result of allegations of professional misconduct. They had been deemed “substantial” by an independent audit commission headed by Eric Holder, a lawyer and former US attorney general under ex-US President Barack Obama.
In mid-2024, NZZ reported, Holder and his firm were tasked with the audit by the WEF board of trustees to investigate 70 allegations of sexual harassment, racial discrimination and leadership “errors”.
Schwab had allegedly tried to pressure the editors of The Wall Street Journal to suppress an article detailing the allegations.
Also accused was Schwab’s son Oliver who with his sister Nicole were at the time both working for the WEF.
Oliver Schwab allegedly ignored a female WEF employee’s complaints about sexual harassment from her superior.
Reportedly, Oliver did not investigate the allegations formally but issued a verbal warning. The accused manager remained in his position and subsequently sexually harassed more than a dozen women in the following 18 months.
The Holder audit found Oliver Schwab’s misconduct serious enough to warrant termination. The WEF subsequently ended co-operation with him – although that was presented publicly as a voluntary exit. Reportedly, this was due to pressure from Klaus Schwab.
The final report by Holder has been kept secret by the WEF. Still, a reorganisation of the group recommended by Holder was launched in 2024.
According to NZZ, Klaus Schwab tried to fight the reform over concerns of excessive bureaucracy and in resentment at the sacking of his son.
On April 22 The Wall Street Journal published a number of new allegations against Klaus Schwab personally.
Anonymous whistle-blowers alleged he had used WEF funds to pay for private trips and massages, had used the WEF villa in Geneva for private purposes and sent interns to withdraw large amounts of cash for him.
In an April 23 article in the Financial Times, Schwab was also accused of manipulating WEF research including its Global Competitive Report.
Schwab has disputed the claims in a communiqué sent to various Swiss newspapers. The WEF has confirmed the allegations and announced a new investigation.
