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Klaus Schwab, the founder of the World Economic Forum, will “start the process” of stepping down as chair of its board of trustees, weeks after the organisation promised an overhaul after an investigation into workplace discrimination.
In a letter to trustee board members, which has been seen by the Financial Times and confirmed by two people with knowledge of the situation, Schwab said the forum, which hosts the elite business conference in Davos, must recover its “sense of mission” after a period of turmoil.
“I am deeply convinced that in today’s special context the forum is more important and relevant than ever before,” he said in an internal email to the trustees sent on Tuesday,
“It is also financially very well equipped thanks to successful financial management since its beginning. 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 the investigation of WEF.
The move comes a day after Trump launched an assault on the global trade order with a barrage of tariffs on US imports and “reciprocal tariffs” that have caused chaos in markets and the global trading system.
Schwab did not give a timeline for his departure from the organisation, of which he was executive chair for more than half a century. But the WEF said in a statement to the Financial Times that the process should be completed by January 2027.
Schwab’s signal to the board of trustees that he would resign as non-executive chair of the board of trustees “came as a surprise” given he only transitioned into the job in the past few months, said one of the people with knowledge of the matter.
The forum’s annual conference in the Swiss resort of Davos has become one of the top events for business leaders and policymakers, playing a significant role in navigating political issues and promoting collaboration in global trade.
Members of the board of trustees include European Central Bank president Christine Lagarde, IMF managing director Kristalina Georgieva, Reliance Industries chair and managing director Mukesh Ambani, BlackRock chief executive Larry Fink and Salesforce chair and chief executive Marc Benioff.
Schwab, 87, said he would propose his successor to the trustees’ board at the appropriate time. The German economist stood down as executive chair of the forum last year and was replaced by Børge Brende, who became chair and managing director of the managing board.
Shortly after Schwab’s resignation last May the Wall Street Journal published accusations of discrimination and harassment made by several Black and female employees against Schwab and other managers.
The organisation denied all of the claims. 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.
However, the investigation did identify “leadership and management issues . . . that did not meet established standards.” In a message to sponsors last month Brende said the organisation was “reviewing and enhancing” its code of conduct.
The founder, who will now focus on writing his memoirs, said making the announcement on April 1 had special significance given that he had started to develop the concept of a “global village” on this exact date 55 years ago.
Additional reporting by Stephen Foley in New York
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