(Bloomberg) — The World Economic Forum has cleared Klaus Schwab of “material wrongdoing” after a law firm conducted a review into potential misconduct of the institution’s founder.
The body also said Blackrock Inc.’s Larry Fink and Roche Holding AG vice chairman Andre Hoffmann will take over the leadership of the WEF board of trustees on an interim basis as co-chairs, according to a statement late Friday. Interim chairman Peter Brabeck-Letmathe is stepping down.
“Following a thorough review of all facts, the Board has concluded that, while the organization must evolve toward a more institutional model, there is no evidence of material wrongdoing by Klaus Schwab,” it said in the statement.
The board also said there is no evidence of any misconduct by Hilde Schwab, the wife of Klaus.
The announcement ends a fight between the founder of the iconic institution and its board that was triggered by reports about potential misconduct by Klaus Schwab.
Schwab abruptly resigned from the WEF in April after the misconduct allegations emerged, sparking the clash. The body launched an investigation to examine a range of accusations, including claims the 87-year-old used the forum’s resources for personal purposes.
The dispute escalated when Schwab accused the WEF’s board of leaking details of an investigation against him to the media, complicating a peace agreement between the two parties.
“Minor irregularities, stemming from blurred lines between personal contributions and Forum operations, reflect deep commitment rather than intent of misconduct,” the WEF said in its statement, pledging to improve its governance.
Fink and Roche heir Hoffmann have been serving on the WEF’s board. The organization’s flagship event, the annual Davos meeting, has emerged into a must-attend event for bankers, business figures and politicians over the decades. The next gathering will take place in January 2026.
“We remain optimistic. The Forum has an opportunity to help drive international collaboration in a way that not only generates prosperity but distributes it more broadly,” Fink and Hoffmann said in a joint statement.
(Updates with comments from Fink and Hoffmann in last paragraph, details on the dispute between Klaus Schwab and the WEF throughout)
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