Over Easter, WEF founder Klaus Schwab threw in the towel. It is now clear why he put an end to his life’s work, himself.
The battle to succeed him as head of the World Economic Forum WEF has flared up.
Irregularities are the reason
The foundation, which organizes the famous events with business leaders and politicians in Davos and other locations, got itself into troubled waters as a result.
Over the Easter long weekend, WEF founder Klaus Schwab unexpectedly announced his resignation.
As the media have now reported, this was not voluntary, but the result of an external investigation into irregularities.
Letter gets the ball rolling
It was alleged that Schwab and his wife had mixed private and business affairs.
An anonymous letter denounced abuses surrounding luxury travel, which is why an independent analysis of the allegations was commissioned.
This also involved a villa in Geneva, which was allegedly used privately by the Schwabs but actually belonged to the foundation.
Almost always on duty
87-year-old Schwab denied the allegations to the ‘Wall Street Journal’ and announced that he would take legal action.
Whether Schwab and his partner Hilde are acting as private individuals or as a management duo for the WEF is difficult to separate anyway. They have represented and organized the WEF for decades.
However, according to the US newspaper, cash payments for massages are also involved.
Wall Street had already regularly lobbied against the toxic working environment at the foundation and against the global improvement event in Davos on climate protection, diversity and other issues.
After all, the Board of Trustees includes big names such as former US Vice President Al Gore and Thomas Buberl, CEO of French insurer Axa.
Vice-Chair steps in
On Easter Sunday, the WEF Foundation Board met unexpectedly and former Nestlé CEO Peter Brabeck-Letmathe took over the leadership.
Observers had suspected that health problems were the reason for his sudden withdrawal after 55 years in office.
However, it is now clear that the clean slate surrounding Schwab’s life’s work was threatened by the allegations. By resigning, the Geneva professor of economics was attempting to facilitate a neutral investigation.
Hildebrand or Lagarde?
At the same time, the battle for the successor to the head position is currently underway.
Candidates under discussion include Blackrock manager and former head of the Swiss National Bank Philipp Hildebrand and the Director of the European Central Bank ECB Christine Lagarde.
However, the latter would first have to resign from her post as ECB chief in order to take up the WEF leadership position.
Furthermore, with the current global economic crisis instigated by US President Donald Trump, she can hardly leave the European central bank.
Blackrock manager Hildebrand is currently taking care of less glorious things, such as the Zurich Kunsthalle.
Timing is difficult
The anonymous letter is therefore probably convenient for those wanting to prevent ECB boss Lagarde from attending the WEF.
If Schwab is out of the picture sooner, there may be candidates other than Lagarde who are more palatable to Wall Street than the influential Frenchwoman.
23.04.2025/kut./ena.
