World Economic Forum investigates Klaus Schwab over misconduct allegations
- The World Economic Forum has initiated an independent investigation into allegations of misconduct against its founder, Klaus Schwab, following a whistleblower complaint.
- The allegations include claims of financial misconduct and improper use of Forum resources for personal expenses.
- The investigation is being taken seriously by the WEF board, which emphasizes that the allegations remain unproven as the process unfolds.
In Switzerland, the World Economic Forum (WEF) announced on April 22, 2025, that it had initiated an independent investigation into its founder, Klaus Schwab, following serious allegations of misconduct. The investigation was prompted by a whistleblower letter containing claims of financial and ethical misconduct tied to Schwab and his wife, Hilde. The anonymous letter, reported on by the Wall Street Journal, raised concerns about inappropriate use of forum resources and mismanagement, estimating that the allegations could impact the organization’s reputation significantly. The whistleblower letter accused Klaus Schwab, who recently resigned from his position as chair, of mixing personal affairs with the Forum's resources and utilizing funds for private expenses. Specific allegations included ordering staff to withdraw cash for personal use and engaging in lavish spending during official trips, including using funds for personal massages. Hilde Schwab was also implicated, with claims that she arranged forum-sponsored meetings to justify luxury vacations funded by the Forum. The WEF board unanimously supported the decision to pursue the investigation after considering the allegations extremely serious yet unproven. This decision came just two days after Klaus Schwab retired unexpectedly, which raised eyebrows and triggered immediate scrutiny. The board included prominent figures, such as former U.S. Vice President Al Gore and European Central Bank President Christine Lagarde, reflecting the organization’s high-profile status. The response from the Schwab family was one of complete denial of the allegations, stating that they had always reimbursed the Forum for any personal expenses incurred during business trips. Klaus Schwab expressed intentions to pursue legal action against the whistleblower and anyone disseminating these claims. This investigation comes amid ongoing criticisms of the WEF, known for its elite forum at Davos, which has faced multiple allegations related to workplace culture, drawing attention to the organization’s internal governance and ethical management practices.