WEF founder cleared of allegations, board names new temporary leaders

The World Economic Forum (WEF) has cleared founder Klaus Schwab of “material wrongdoing” following a law firm review into potential misconduct, the organisation announced in a statement on the night of August 15, according to Bloomberg.

The WEF also confirmed that Larry Fink, CEO of BlackRock Inc., and Andre Hoffmann, vice chairman of Roche Holding AG, will assume interim leadership of the WEF board of trustees as co-chairs. Interim chairman Peter Brabeck-Letmathe will step down.

“Following a thorough review of all facts, the Board has concluded that, while the organisation must evolve toward a more institutional model, there is no evidence of material wrongdoing by Klaus Schwab,” the statement said. The board added that there is also no evidence of misconduct by Hilde Schwab, Klaus Schwab’s wife.

The announcement resolves a public dispute between Schwab and the WEF board that began after reports raised questions about the founder’s conduct. Schwab abruptly resigned from the Forum in April amid the allegations, prompting the investigation into claims that the 87-year-old may have used WEF resources for personal purposes.

Tensions escalated when Schwab accused the board of leaking investigation details to the media, complicating efforts to reach a resolution. In its statement, the WEF described any minor irregularities as stemming from blurred lines between personal contributions and Forum operations, emphasising they reflected commitment rather than intentional misconduct, and pledged improvements to governance.

Both Fink and Hoffmann, who have previously served on the WEF board, said they are optimistic about the organisation’s future.

“The Forum has an opportunity to help drive international collaboration in a way that not only generates prosperity but distributes it more broadly,” they said in a joint statement.

Over the decades, the WEF’s flagship Davos meeting has become a premier event for bankers, business leaders, and politicians. The next annual gathering is scheduled for January 2026.

By Tamilla Hasanova