Whistleblower Claims Prompt Investigation into Financial and Ethical Misconduct by Schwab and Family

April 23, 2025 | Geneva, Switzerland- The World Economic Forum (WEF), renowned for its annual Davos gathering of global elites, announced on Tuesday that it has initiated an independent investigation into its founder, Klaus Schwab, following serious allegations of financial and ethical misconduct. The probe, confirmed by the WEF’s board, comes just one day after Schwab, 87, abruptly resigned as chairman on Monday, April 21, 2025, without providing a reason for his departure.

According to a report by The Wall Street Journal, the investigation was triggered by an anonymous whistleblower letter sent to the WEF’s board last week. The letter, allegedly from current and former WEF staff, accuses Schwab of misusing Forum funds for personal gain, including asking junior employees to withdraw thousands of dollars from ATMs on his behalf and using WEF resources to pay for private, in-room massages at hotels. The letter also claims that Schwab’s wife, Hilde, scheduled “token” WEF-funded meetings to justify luxury holiday travel at the organization’s expense. Additional allegations point to a governance issues, including Schwab’s decades-long leadership allowing instances of sexual harassment and discriminatory behavior to go unchecked.

The WEF issued a statement emphasizing that while it takes the allegations seriously, they remain unproven, and it will await the investigation’s outcome before commenting further. The probe, led by the WEF’s Audit and Risk Committee with support from independent legal experts, is intended to ensure transparency and accountability. A spokesperson for the Schwab family denied all allegations, with Schwab reportedly planning to sue those responsible for the letter and anyone spreading what he calls “mistruths.”

Schwab, who founded the WEF in 1971 as the European Management Forum, has been a polarizing figure. His vision transformed the organization into a global platform for public-private cooperation, but the Davos summit has faced criticism as an elitist event disconnected from ordinary people. Recent posts on X reflect public skepticism, with users alleging Schwab’s resignation and the investigation signal deeper issues within the WEF, including claims of significant fund transfers to offshore entities. However, these claims remain unverified and speculative.

The WEF’s board, which includes high-profile figures like former U.S. Vice President Al Gore and European Central Bank President Christine Lagarde, unanimously supported the investigation. Former Nestlé Chairman and CEO Peter Brabeck-Letmathe has been appointed interim chairman while a search for a permanent successor is underway. The WEF’s funding, primarily from its 1,000 member multinational companies, has also drawn scrutiny, with critics pointing to its tax-exempt status and Schwab’s reported $1 million annual salary as points of contention.

As the investigation unfolds, the WEF faces a critical moment in its 54-year history. The outcome could reshape the organization’s leadership and public perception, particularly as it navigates ongoing criticism of its workplace culture and global influence. For now, the WEF remains focused on its mission to foster dialogue and cooperation, but the shadow of these allegations looms large over its future.