The founder and longtime president of the World Economic Forum, Klaus Schwab, has announced his retirement "with immediate effect," according to a statement from the organization.
Schwab, 88, has been stepping down from executive roles at the Forum, but remained at the helm of the board that convenes annually in Davos. Earlier this month, he stated that he would start preparing for his departure, but has ultimately decided to accelerate his retirement. He is temporarily replaced by Peter Brabeck-Letmathe, former president of the Swiss group Nestlé at the helm. As the Forum's chief executive, the former Norwegian minister , Borge Brende, continues.
"I have decided to resign from the position of President and as a member of the Board, with immediate effect," Schwab states in a brief statement where he emphasizes his age, but does not provide additional reasons for his departure. This coincides with a new world order against the principles of the Davos Forum, which advocates for globalization and trade liberalization. It also comes amidst controversy over allegations by Forum workers regarding the human resources policy for alleged discriminatory treatment and harassment. The institution has had to commission an internal investigation.
"At an extraordinary meeting held on April 20, the Board of Directors took note of Klaus Schwab's resignation. In accordance with the Forum's Regulations, the Board unanimously appointed Vice President Peter Brabeck-Letmathe as interim President. It has also established a Search Committee for the selection of a future President," the statement adds.
Schwab not only steps down from the board presidency but also resigns as a trustee. "The Board acknowledged the outstanding achievements of the retired President and Founder of the World Economic Forum, Klaus Schwab. He created the world's leading platform for dialogue and progress, and the Board expressed its gratitude for his 55 years of tireless leadership at the helm of the Forum," the text adds.
It does not mention the trade war, but the Forum emphasizes: "At a time when the world is undergoing rapid transformation, the need for inclusive dialogue to navigate complexity and shape the future has never been more critical."
Therefore, "the Board of the World Economic Forum underscores the importance of staying true to its mission and values as a facilitator of progress. Building on its trusted role, the Forum will continue to bring together leaders from all sectors and regions to exchange ideas and foster collaboration."