The World Economic Forum has cleared its founder, Klaus Schwab, of material wrongdoing following an internal investigation into allegations of financial and workplace misconduct.
In an announcement published on Aug. 15, the Davos, Switzerland-based organization said the probe, conducted by Swiss law firm Homburger, identified “minor irregularities” in expenses but concluded there was “no evidence of material wrongdoing” by Schwab or his wife, Hilde Schwab.
In a statement, the WEF attributed the irregularities to “blurred lines between personal contributions and Forum operations” rather than intentional misconduct.
“The Board deeply regrets the public scrutiny that preceded the completion of the investigation, and the undue pressure this has placed on Klaus and Hilde Schwab,” the statement said. “With the facts now clearly established, we will move forward with clarity, stronger governance and renewed focus on our mission.”
Also on Friday, the WEF announced Larry Fink and André Hoffmann will take over as its interim co-chairs. Fink is the co-founder and CEO of financial services firm BlackRock. Hoffmann is the vice-chairman of multinational pharmaceutical firm Roche.
Schwab, who founded the WEF in 1971 as the European Management Forum, resigned in April. In that same month, the Wall Street Journal shared the details of an anonymous complaint alleging unauthorized spending and inappropriate treatment of female employees by Schwab and his wife. In 2024, the Journal also published an article alleging a pattern of workplace misconduct by Schwab.
In an email, Alem Tedeneke, a spokesperson for the WEF, told The Epoch Times the organization has “nothing further to add” beyond the statements it issued on Friday. The organization neither confirmed nor denied the accuracy of the Journal’s reporting.
“[We] will now focus on moving forward with our work,” Tedeneke said.
Fink and Hoffmann replace interim chairman Peter Brabeck-Letmathe, former CEO of Nestlé, who, according to a report from the Journal, resigned on Aug. 12 following a trustees’ meeting to discuss the probe’s results.
According to a resignation letter shared with the Journal, Brabeck-Letmathe said he resigned in part because of a “toxic work environment” he said he had personally observed for several months. He wrote that the only way forward was for the board to seek an amicable agreement with Schwab to end the dispute.
For now, according to the Aug. 15 statement from the Forum, the organization is focused on “bringing together government, business and civil society to improve the state of the world.”
“We remain steadfast in our dedication to the Forum’s mission and to the principles that have guided its work for over five decades,” the statement said.