The World Economic Forum closed its investigation into founder Klaus Schwab on Friday and cleared him of wrongdoing. The board also appointed Larry Fink, chief executive of BlackRock, and Andre Hoffmann, vice-chair of Roche Holding, as interim co-chairs.
The inquiry began in April after an anonymous whistleblower letter accused Schwab of misconduct. The board reviewed the claims and found no evidence of material breaches. It also examined allegations involving Schwab’s wife, Hilde, and concluded she had committed no misconduct.
The findings stated that a few irregularities reflected personal commitment rather than misuse of position. The investigation came soon after Schwab announced his resignation as chairman. At that time, the forum did not explain its decision.
BlackRock’s influence grows in forum leadership
Schwab, now 87, has long been the central figure of the forum and its annual meeting in Davos. For decades, the event has symbolized globalization, bringing together world leaders, corporate executives, and policymakers. Reports of the probe surfaced first in the Wall Street Journal.
The anonymous complaint raised concerns over governance, workplace culture, and oversight at the forum. It suggested that the Schwab family blurred the lines between personal affairs and organizational resources. In May, Schwab filed a criminal complaint against the whistleblowers, but he now plans to withdraw both that case and a separate lawsuit following the conclusion of the inquiry.
Peter Brabeck-Letmathe, who had been serving as interim chairman, stepped down after the investigation closed. The new interim co-chairs, Fink and Hoffmann, said they would guide the forum through a transition period and aim to reinforce its relevance.
Geneva forum moves past probe toward renewal
Their leadership begins as the organization faces growing scrutiny from critics who call Davos an exclusive circle detached from broader society.
The outcome ends months of speculation over Schwab’s role and the future direction of the Geneva-based body.
With the probe settled, the forum’s focus now shifts to leadership changes and adjustments in governance. The appointment of two high-profile figures signals an effort to maintain stability and strengthen confidence in the institution.
The Davos gathering remains one of the most visible symbols of international cooperation, though its critics continue to question its effectiveness. The latest leadership changes mark the beginning of a new phase for the forum, as it seeks to balance tradition with the need for reform.
