Klaus Schwab, the founder of the World Economic Forum, is at the center of a growing scandal after preliminary findings from an internal probe into allegations of unauthorized spending, workplace misconduct, and manipulation of key research reports were leaked to several media outlets. The investigation into Schwab, launched earlier this year in response to whistleblower complaints, threatens to tarnish the WEF leader’s legacy and the reputation of the Forum he led for over five decades. Preliminary findings from investigators identified more than $1 million in questionable expenses billed to WEF by Schwab along with several other personal conduct and ethical concerns.
Schwab, who started WEF in 1971 and transformed Davos into a hub of elite international networking and diplomacy, stepped down from his role as chair of the board in April amid pressure from the whistleblower complaints. He had been expected to stay on until 2027.
The probe, conducted by Swiss law firm Homburger and reportedly overseen by WEF’s board of trustees, noted upwards of $1.1 million in questionable travel expenses filed by Schwab and his wife, Hilde. Many of the expenses covered the couple’s first-class tickets for Forum-related business. Hilde, however, has no formal role at the organization and was allegedly simply accompanying her husband.
