Financial Conference clears Schwab following an examination into alleged improprieties
The World Economic Forum (WEF) has announced significant changes in its leadership following an investigation into allegations of misconduct against its founder, Klaus Schwab.
The investigation, conducted independently, found no evidence of misconduct or material wrongdoing by Schwab or his wife, Hilde Schwab, clearing them of the whistleblower allegations. However, minor irregularities were identified, attributed to unclear boundaries between personal contributions and Forum activities. These irregularities were viewed as reflecting commitment rather than misconduct.
In light of the investigation's findings, Klaus Schwab stepped down from his leadership role as chair of the WEF board in April 2025, pending the probe outcome. As of August 2025, his leadership role has been replaced by interim co-chairs Larry Fink (CEO of BlackRock) and André Hoffmann (Vice-Chair of Roche).
André Hoffmann, one of the heirs of the pharmaceutical company Roche, and Larry Fink have expressed their intention to co-create a more resilient and prosperous future, and to reinvent and strengthen the WEF as an indispensable institution for collaboration between the public and private sectors.
The WEF has also committed to strengthening its governance, addressing employee concerns about internal treatment, and ensuring adherence to principles of integrity and responsible behaviour across the organization.
Peter Brabeck-Letmathe, the former CEO of Nestlé and previous deputy chairman of the foundation council of the WEF, has taken over the chairmanship from Schwab. Brabeck-Letmathe will no longer hold an official position at the WEF.
Klaus Schwab, aged 87, is the founder of the World Economic Forum, established in 1971. The U.S. newspaper "Wall Street Journal" reported on alleged financial and ethical misconduct by Schwab and his wife in the spring. Schwab rejected all allegations and filed a criminal complaint for defamation in early June.
Schwab is expected to publish a summary of his memoirs in September and the first book in a planned series about the impact of artificial intelligence on humans. He will not be holding an official position at the WEF.
The World Economic Forum organizes the annual World Economic Forum in Davos, Switzerland.
[1] Independent Investigation Clears Klaus Schwab of Misconduct Allegations, World Economic Forum, August 2025. [2] World Economic Forum Strengthens Governance in Response to Allegations, World Economic Forum, August 2025. [3] Klaus Schwab Steps Down as Chair of World Economic Forum, World Economic Forum, April 2025. [4] World Economic Forum Denies Allegations of Misconduct, Wall Street Journal, May 2025. [5] Larry Fink and André Hoffmann to Lead World Economic Forum as Interim Co-Chairs, World Economic Forum, August 2025.
- The World Economic Forum (WEF) has pledged to strengthen its employment policy, addressing concerns about internal treatment, and ensuring adherence to principles of integrity and responsible behavior, as stated in their announcement titled "World Economic Forum Strengthens Governance in Response to Allegations."
- Despite the ongoing scrutiny, Klaus Schwab, the founder of the WEF, remains active in other endeavors, such as publishing memoirs and writing books about the impact of artificial intelligence on humans, finance, and general-news sectors, as mentioned in the Wall Street Journal article "World Economic Forum Denies Allegations of Misconduct."
