Klaus Schwab steps down as chair of World Economic Forum's board of trustees, but to remain until successor is appointed

The World Economic Forum founder Klaus Schwab, will "start the process" of stepping down as chair of its board of trustees, a spokesperson for the Geneva-based institution told Reuters on Thursday.

Schwab said the forum, which convenes annual gatherings in the Swiss resort of Davos, must recover its "sense of mission" after a period of turmoil, the Financial Times first reported, citing a letter to trustee board members and confirmation by two people with knowledge of the situation.

He did not give a timeline for his departure from the organisation, but the WEF said in a statement to the FT that the process should be completed by January 2027.

Schwab will remain in this role until a successor is appointed, the World Economic Forum spokesperson told Reuters, without providing a timeline.

Why is Klaus Schwab stepping down

Last year, Klaus Schwab said he would next year give up executive duties to a team led by Borge Brende after 55 years at the forum. Brende was a former foreign minister of Norway and has been the WEF's president since 2017.

"It is also financially very well equipped thanks to successful financial management since its beginning," Schwab said of the forum to the FT.

"What is essential now after the turmoil of the last months, is to recover our sense of mission," he said, without specifying if the upheaval he was referring to was in response to Donald Trump's second presidential term or an investigation of the WEF, the report added.

Probe into WEF's workplace culture

The Wall Street Journal last year reported the WEF's board was working with a law firm to investigate its workplace culture, after the newspaper reported allegations of a culture of harassment and discrimination at the organisation.

Last month, the WEF said external lawyers hired to perform an investigation into the claims did not find it had committed any legal violations and did not substantiate allegations of misconduct against Schwab, the FT reported.

External lawyers hired by the World Economic Forum “did not find the forum had committed any legal violations” and “did not substantiate” allegations of misconduct against founder Klaus Schwab, according to a summary of the investigation sent to some of the WEF’s biggest sponsors, the report said.

But the emailed message, sent by Schwab’s successor as WEF chief executive Borge Brende, said a board committee overseeing the investigation had identified “leadership and management issues . . . that do not meet our established standards” and promised to reinforce “our commitment to a workplace where all employees feel valued and respected”.

The WEF promised to introduce extra training for managers and mental health resources for staff.

Schwab stood down as executive chair last year after more than half a century at the helm of the organisation, having turned its annual meeting in Davos into the pre-eminent conference for global business leaders and policymakers. He is now chair of WEF’s board of trustees.

World Economic Forum, 2025

Armed conflict is the top risk in 2025, a WEF survey released on January 15 showed, a reminder of the deepening global fragmentation as government and business leaders who attended an annual gathering in Davos on January 20.

Nearly one in four of the more than 900 experts surveyed across academia, business and policymaking ranked conflict, including wars and terrorism, as the most severe risk to economic growth for the year ahead.

The annual meeting ended on January 24 with a call for working together in this era of uncertainty, after five days of intense discussions on politics, economy, climate and conflicts among various other issues.

Attended by over 3,000 global leaders from 130 countries and from politics, business, academia, civil society and various other areas, the meeting saw discussions spread over more than 500 sessions.