WEF clears founder Schwab of wrongdoing; appoints interim co-chairs

Klaus Schwab, Chairman of the World Economic Forum attends the opening of the Annual Meeting of World Economic Forum in Davos, Switzerland, Jan. 16, 2024. (AP Photo/Markus Schreiber, File)

Aug 15 (Reuters) - The World Economic Forum closed an investigation on its founder Klaus Schwab on Friday, clearing him of any wrongdoing, and appointed BlackRock CEO Larry Fink and Roche Holding’s vice-chair Andre Hoffmann as interim co-chairs of its board.

The Geneva-based organization had launched an investigation in April into 87-year-old Schwab following a whistleblower letter alleging misconduct.

The probe was announced a day after Schwab resigned as chairman. The forum at that time did not say why he was quitting.

For decades, Schwab has been the face of the WEF’s annual gathering of business and political leaders in the Swiss mountain resort of Davos, which has become a symbol of globalization.

The WEF said on Friday that its board had completed an investigation into allegations raised by anonymous whistleblowers against Schwab and found there was no evidence of material wrongdoing by him.

WEF also did not find any misconduct by Schwab’s wife and former assistant, Hilde Schwab.

“Minor irregularities, stemming from blurred lines between personal contributions and forum operations, reflect deep commitment rather than intent of misconduct,” WEF said.

The Wall Street Journal, which first reported the probe in April, had said an anonymous letter raised concerns about the WEF’s governance and workplace culture, including allegations that the Schwab family mixed their personal affairs with the forum’s resources without proper oversight.

In May, a spokesperson for Schwab informed Reuters that he had filed a criminal complaint against the whistleblowers.

The Schwab family denied all the allegations in the whistleblower complaint to the Journal.

Following the conclusion of the probe, a spokesman for Schwab told WSJ on Friday that he intends to drop his lawsuit and a separate legal action against anonymous whistleblowers.

The WEF also said Peter Brabeck-Letmathe had stepped down as interim chairman following the investigation’s conclusion.

In a statement posted on the WEF website, newly appointed co-chairs Fink and Hoffman said they were honored to take on the leadership role on an interim basis and looked forward to reinventing and strengthening the organization.

WEF’s Davos gathering has in recent years drawn criticism from opponents on both left and right as an elitist talking shop detached from lives of ordinary people.

Reporting by Mrinmay Dey in Bengaluru. Editing by Jane Merriman and Nia Williams