WSJ reports investigation into alleged misconduct by Davos founder
Klaus Schwab, the founder and former chairman of the World Economic Forum, resigned earlier this week without providing a reason for his departure. According to a report from the Wall Street Journal on Tuesday, the World Economic Forum has...
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Klaus Schwab, the founder and former chairman of the World Economic Forum, resigned earlier this week without providing a reason for his departure.
According to a report from the Wall Street Journal on Tuesday, the World Economic Forum has initiated an internal investigation into claims of misconduct against Schwab, based on whistleblower allegations. This news surfaced just a day after Schwab stepped down as chair of the WEF’s board of trustees, concluding his over 50-year leadership since founding the organization in 1971. Under his guidance, the WEF grew into a significant platform for the annual Davos summit, attended by world leaders and corporate executives.
The WSJ reported that the WEF board received an anonymous letter last week, allegedly from current and former employees, that accused Schwab and his wife, Hilde—who is also a former WEF employee—of financial and ethical misconduct. The letter claimed that Schwab misused organizational funds for personal expenses and directed junior staff to withdraw cash for private uses, including massages during official trips. It also alleged that Hilde Schwab used WEF resources for luxury hotel accommodations during personal travels.
The accusations raised further issues regarding Schwab’s leadership style, including assertions that he created a workplace atmosphere where sexual harassment and discriminatory behavior were allowed to persist.
Sources within the WEF informed the publication that the board held an emergency meeting on Easter Sunday, during which they voted to launch an investigation, leading to Schwab’s resignation despite initial plans for a gradual leadership transition that was set to continue until 2027.
In a formal statement, the WEF confirmed the board's unanimous decision to pursue an independent investigation after consulting with external legal counsel. The organization emphasized that while it takes the allegations seriously, they "remain unproven" and that it will "await the outcome of the investigation to comment further."
A spokesperson representing the Schwabs denied the allegations, asserting that the family consistently reimbursed the organization for personal expenses incurred during business trips. The spokesperson also mentioned that Schwab plans to sue those responsible for the letter and “anybody who spreads these mistruths,” highlighting that he forfeited a pension of 5 million Swiss francs from the WEF to demonstrate his good faith.
These new claims emerge following similar allegations last year concerning a toxic workplace environment, sexual harassment, and racial discrimination within the WEF. In March, the organization reported to its sponsors that a review of the previous claims found no legal violations and did not corroborate misconduct by Schwab.
Rohan Mehta for TROIB News
According to a report from the Wall Street Journal on Tuesday, the World Economic Forum has initiated an internal investigation into claims of misconduct against Schwab, based on whistleblower allegations. This news surfaced just a day after Schwab stepped down as chair of the WEF’s board of trustees, concluding his over 50-year leadership since founding the organization in 1971. Under his guidance, the WEF grew into a significant platform for the annual Davos summit, attended by world leaders and corporate executives.
The WSJ reported that the WEF board received an anonymous letter last week, allegedly from current and former employees, that accused Schwab and his wife, Hilde—who is also a former WEF employee—of financial and ethical misconduct. The letter claimed that Schwab misused organizational funds for personal expenses and directed junior staff to withdraw cash for private uses, including massages during official trips. It also alleged that Hilde Schwab used WEF resources for luxury hotel accommodations during personal travels.
The accusations raised further issues regarding Schwab’s leadership style, including assertions that he created a workplace atmosphere where sexual harassment and discriminatory behavior were allowed to persist.
Sources within the WEF informed the publication that the board held an emergency meeting on Easter Sunday, during which they voted to launch an investigation, leading to Schwab’s resignation despite initial plans for a gradual leadership transition that was set to continue until 2027.
In a formal statement, the WEF confirmed the board's unanimous decision to pursue an independent investigation after consulting with external legal counsel. The organization emphasized that while it takes the allegations seriously, they "remain unproven" and that it will "await the outcome of the investigation to comment further."
A spokesperson representing the Schwabs denied the allegations, asserting that the family consistently reimbursed the organization for personal expenses incurred during business trips. The spokesperson also mentioned that Schwab plans to sue those responsible for the letter and “anybody who spreads these mistruths,” highlighting that he forfeited a pension of 5 million Swiss francs from the WEF to demonstrate his good faith.
These new claims emerge following similar allegations last year concerning a toxic workplace environment, sexual harassment, and racial discrimination within the WEF. In March, the organization reported to its sponsors that a review of the previous claims found no legal violations and did not corroborate misconduct by Schwab.
Rohan Mehta for TROIB News
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