Davos creator gets investigated due to alleged misconduct
(MENAFN) The World Economic Forum (WEF) has launched an internal investigation into allegations of misconduct involving its founder and former chairman, Klaus Schwab, according to a report by The Wall Street Journal on Tuesday. The probe follows a whistleblower letter accusing Schwab and his wife, Hilde, of financial and ethical violations.
The investigation comes one day after Schwab stepped down as chair of the WEF’s board of trustees, ending his more than 50-year tenure at the helm of the influential organization he founded in 1971. His resignation did not include a public explanation.
The anonymous letter, reportedly from current and former WEF employees, alleged that Schwab misused the organization’s funds for personal expenses, including having junior staff withdraw money for private use such as massages during official trips. The letter also accused Hilde Schwab of using WEF funds for luxury hotel stays on personal trips. Additionally, the letter raised concerns about Schwab's leadership, claiming he created a workplace environment where sexual harassment and discrimination were allowed to persist.
In response to the allegations, WEF sources said the board held an emergency meeting on Easter Sunday and decided to launch an independent investigation. This prompted Schwab’s resignation, which had been part of a planned phased leadership transition set to run through 2027.
The WEF confirmed it would pursue an independent investigation, noting that while the allegations are taken seriously, they remain unproven. The organization has stated it will refrain from further comment until the investigation concludes.
A spokesperson for the Schwabs denied the accusations, asserting that the family always reimbursed the WEF for any personal expenses incurred during business trips. The spokesperson also revealed that Schwab plans to sue those behind the allegations and anyone who spreads them, emphasizing that he forfeited a pension of 5 million Swiss francs ($6 million) from the WEF to show his good faith.
These new allegations add to similar accusations made last year regarding workplace culture issues, sexual harassment, and racial discrimination at the WEF. A review of these earlier claims, reported in March, found no legal violations and did not substantiate misconduct by Schwab.
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