Klaus Schwab Resigns as Chairman of the World Economic Forum

Klaus Schwab, the founder and long-standing chairman of the World Economic Forum (WEF), has announced his immediate resignation from his position. Having led the organization for over 54 years, Schwab's departure comes amidst increasing scrutiny and criticism regarding the forum's leadership and thematic focus.

Schwab, who is now 87 years old, originally established the WEF in Davos in 1971 as a platform for corporate executives. Although he had previously indicated plans for succession, his sudden resignation suggests a hastened decision. Following his departure, Peter Brabeck-Letmathe, a former CEO of Nestlé and Schwab's deputy, has been appointed as the interim chairman while a search for a permanent successor is initiated.

In recent years, Schwab faced mounting criticism from key stakeholders within the global business community, who expressed concerns about the direction of the forum's discussions and initiatives. Additionally, internal issues have come to light, including allegations of sexism and racism within the organization, which Schwab and the WEF have denied. Long-time attendees of the Davos forum have suggested that significant changes may be necessary to modernize the event.

While Schwab had stepped back from day-to-day operations, delegating responsibilities to Borge Brende, the current president of the WEF, the interim chairperson Brabeck-Letmathe, aged 80, is not expected to assume the role of permanent chairman. Speculation regarding potential successors has included names like Christine Lagarde, the current president of the European Central Bank, whose term extends until late 2027, as well as Ursula von der Leyen, president of the European Commission, and Thomas Buberl, CEO of AXA.

Schwab's journey began in Ravensburg, Germany, where he was born in 1938 to a German-Swiss family. He pursued higher education in business administration and mechanical engineering before taking on a role at Escher Wyss, a Swiss engineering company. His vision for the WEF evolved over decades from a managerial conference aimed at promoting responsible corporate governance to a prominent global platform that attracts around 3,000 participants from various sectors, including business, politics, academia, civil society, and media.

Today, the World Economic Forum operates from its headquarters by Lake Geneva, employing approximately 1,000 individuals and generating an annual revenue of around 400 million Swiss francs. The organization continues to advocate for its mission, which remains under the stewardship of Schwab's family.