Klaus Schwab Misconduct Allegations: Key Findings from Internal Report
Internal investigation reveals unauthorized spending and inappropriate behavior by Klaus Schwab
The World Economic Forum (WEF) has completed an internal review that found that its founder Klaus Schwab engaged in serious misconduct over the past decade, from questionable spending on himself and his wife to inappropriate behavior with female employees and abuse of power. This is reports The Wall Street Journal cited preliminary findings from the investigation and sources familiar with the matter. The investigation was conducted by the Swiss law firm Homburger, which declined to comment officially.
According to the newspaper, the charges against Schwab include:
- Harassment and discrimination. The investigation found that Schwab repeatedly made inappropriate comments toward female employees. One such instance was a late June 2020 email to a senior employee in which Schwab wrote, “Do you feel like I’m thinking about you?” The investigation also found instances of pregnant women and employees over 40 being excluded from important tasks, which negatively impacted their careers and mental health.
- Unauthorized Travel Expenses. The total amount of questionable travel expenses by Schwab and his wife Hilde was more than $1.1 million. Much of this money was spent on first-class tickets for Hilde, who accompanied her husband on business trips, even though she had no official role on those trips. An additional $63,000 was spent on personal trips to Venice, Miami, the Seychelles, and Morocco, all for no apparent business purpose.
- Receiving gifts and favors. The investigation noted instances of Schwab receiving gifts, including tea sets from Russia, personalized Tiffany cufflinks, and furs, which are prohibited by the forum’s internal rules. The forum was also billed for 14 hotel massages paid for with Schwab’s and his subordinates’ corporate cards. He later reimbursed only about half of those expenses.
- Meddling in country rankings. Schwab has also been accused of personally meddling in the WEF’s Global Competitiveness Index, asking staff to boost India’s ranking because of his personal ties to the country’s prime minister and to downgrade the UK after Brexit to deprive Leave supporters of any cause for celebration.
- Abuse of property and personnel. The Schwab couple, according to the investigation, supervised the expensive renovation of the Villa Mundi on Lake Geneva, using it for personal purposes. The WEF also covered the cost of a driver for family vacations and telephone calls for domestic workers.
Klaus Schwab, through his representative, categorically denied all accusations. Schwab emphasized that he never sought personal enrichment at the expense of the forum, always treated women with respect and regarded the employees as his family. According to Schwab, any personal expenses will be reimbursed by the organization after the investigation is completed. He also stated that his wife accompanied him on trips within the framework of an unspoken agreement between the WEF and the Schwab Foundation, where she performed representative functions.
Lawyers at the Swiss firm Homburger, which is leading the investigation, plan to take Schwab’s comments into account and present a final report to the WEF’s board of trustees by the end of August. The document could then be forwarded to Swiss law enforcement authorities.
87-year-old Klaus Schwableftstep down in the spring of 2025 after 55 years at the helm of the WEF, two years ahead of schedule. He formally announced the move over the Easter weekend, but his resignation was preceded by an anonymous complaint to the board of trustees alleging abuses on his part. The letter alleged that Schwab had interfered with the methodology of the forum’s key ranking, the Global Competitiveness Report, in order to adjust countries’ rankings for political reasons. He was also accused of misusing the organization’s funds, trying to promote his candidacy for the Nobel Prize, and creating a toxic work environment.
Before the scandal, Schwab had planned to stay in the job until 2027. In an interview with the Financial Times, he stated, that the successor should be the head of the European Central Bank, Christine Lagarde, who allegedly negotiated a move to the World Economic Forum. According to Schwab, he personally discussed housing with her in Davos and transferred some of her responsibilities.
However, the ECB denied rumors of Lagarde’s early departure. A representative of the regulator said that Lagarde is “fully focused on fulfilling her mandate,” which expires in October 2027 and is not subject to renewal. The WEF itself declined to comment, citing confidentiality. Former Nestlé CEO Peter Brabeck-Letmathe has been appointed acting chairman of the forum.
