In a statement confirming a Wall Street Journal report, the World Economic Forum (WEF) said its board of trustees "unanimously supported the Audit and Risk Committee's decision to initiate an independent investigation following a whistleblower letter containing allegations against former Chairman Klaus Schwab."
Schwab has denied the accusations, the Journal added.
The WEF, known for its annual gathering of global elites in the Swiss resort town of Davos, initially gave no reason for Schwab’s abrupt resignation on Monday, which was effective immediately.
In its first announcement, the WEF board praised Schwab’s “outstanding achievements” over his 55 years at the helm.
However, the Wall Street Journal reported that the resignation followed the board’s decision to investigate allegations of financial and ethical misconduct involving Schwab and his wife, Hilde.
Emergency Meeting
According to the Journal, the letter—allegedly sent by anonymous current and former WEF staff—claimed that Schwab had junior employees withdraw thousands of dollars from ATMs on his behalf and that he used Forum funds to pay for private, in-room massages during hotel stays.
The letter also reportedly accused Hilde Schwab of organizing “token” Forum-funded meetings to justify luxury travel at the organization’s expense.
It further raised concerns about Klaus Schwab’s treatment of female staff and claimed his long tenure allowed incidents of sexual harassment and discriminatory behavior to go unaddressed.
Schwab could not be reached for comment, but according to the Journal, he strongly denied all the allegations and threatened legal action if the board moved forward with an investigation.
Despite his objections, the board held an emergency meeting on Sunday and voted to launch a formal inquiry, prompting Schwab to step down immediately.
In its Wednesday statement, the WEF said the decision was made “after consultation with external legal counsel and in line with the Forum’s fiduciary responsibilities.”
“While the Forum takes these allegations seriously, it emphasizes that they remain unproven and will await the outcome of the investigation before commenting further.”
