World Economic Forum founder Klaus Schwab allegedly exhibited misconduct during his 55-year tenure, including manipulating research data to undermine Brexit and submitting questionable expenses exceeding $1 million, according to preliminary findings from an internal investigation.
The probe, launched by the WEF board of trustees in April, was initiated following whistleblower complaints alleging unauthorised spending, workplace bullying and inappropriate treatment of female staff by the 87-year-old German economist. Swiss law firm Homburger is conducting the investigation, with final findings expected by the end of August.
Schwab abruptly resigned as WEF chairman on Easter Monday, just two days after the board voted unanimously to open the investigation. The timing followed an emergency board meeting on Easter Sunday where trustees declined to hear Schwab’s defence against the allegations.
<cite>According to excerpts cited by the newspaper, Homburger’s investigation found that Schwab repeatedly intervened to influence country rankings in the WEF’s Global Competitiveness Report for political purposes.</cite> The Swiss newspaper SonntagsZeitung obtained preliminary findings suggesting Schwab manipulated the flagship report to prevent Brexit appearing successful.
In the 2017/2018 Global Competitiveness Report, Britain’s ranking initially improved from seventh to fourth place following a methodology change. However, Schwab allegedly instructed staff that the UK “must not see any improvement” as it would be “exploited by the Brexit camp,” according to the investigation findings.
The final published report showed Britain dropping to eighth place, with the WEF stating at the time that Brexit would “by definition weaken the UK’s markets component as integration with the EU is rolled back.
Investigators also claim Schwab intervened to maintain India’s ranking after consulting with Prime Minister Narendra Modi. <cite>In one 2017 email to then-managing director Richard Samans, Schwab allegedly requested that the report be withheld to avoid straining his relationship with Indian Prime Minister Narendra Modi, whose country had scored poorly in the ranking.</cite>
The probe has identified approximately 900,000 Swiss francs ($1.12 million) in expense claims submitted by Schwab and his wife Hilde that allegedly lacked sufficient ties to WEF activities. Investigators noted 14 hotel massages billed to the Forum through corporate cards, with Schwab later reimbursing roughly half.
“Throughout this journey, Hilde and I never used the Forum for personal enrichment,” Schwab said in a written statement, denying all allegations. The 87-year-old has filed a criminal complaint against the whistleblowers, calling their claims “stupid and constructed.”
<cite>Investigators told trustees that Schwab treated the Forum like his “fiefdom,” fostering a culture of intimidation and fear while allowing harassment and discrimination to go unchecked.</cite> The preliminary findings suggest a pattern of inappropriate behaviour spanning years.
In one instance from June 2020, Schwab allegedly sent a late-night email to a senior female executive stating: “Do you feel that I am thinking of you.” Investigators cited this as an example of potentially inappropriate communication with younger staff members.
The probe also examined allegations that Schwab sidelined women who were pregnant or over 40, negatively impacting their careers. Through his spokesman, Schwab responded that he “always treated women respectfully” and described himself as a father figure to many young employees.
Reform UK leader Nigel Farage responded to the allegations, telling The Telegraph: “Every conspiracy theory about Klaus Schwab now turns out to be true. He is a dangerous globalist manipulator.”
His deputy Richard Tice added: “No surprise the globalist WEF appears to have distorted facts to prevent sovereignty and independence being seen as a good thing. They are a dreadful organisation that Reform will have nothing to do with.”
Conservative shadow foreign secretary Priti Patel called the alleged manipulation “a stain on the reputation of the WEF” and “thoroughly unacceptable” for conspiring against the democratic outcome of Brexit.
The WEF board, which includes former US Vice President Al Gore, Jordan’s Queen Rania and European Central Bank President Christine Lagarde, voted unanimously to support the investigation after consulting external legal counsel.
“While the Forum takes these allegations seriously, it emphasises that they remain unproven, and will await the outcome of the investigation to comment further,” the organisation stated.
Schwab founded the European Management Forum in 1971, later renamed the World Economic Forum, transforming it from a small gathering of business leaders into the influential annual Davos summit attracting world leaders and corporate executives.
The organisation has faced mounting criticism as a symbol of globalisation and an exclusive club wielding excessive influence over policymakers. The 2024 summit focused on “rebuilding trust” whilst Oxfam reported that the world’s five richest men had more than doubled their fortunes since 2020.
Tales of excess at Davos have become increasingly prominent. Escort agencies reported that demand for prostitutes during the conference has surged, with 300 women booked in 2025 compared to 140 the previous year, many required to sign non-disclosure agreements.
Former Nestlé chairman Peter Brabeck-Letmathe is serving as interim WEF chairman whilst a search committee seeks a permanent replacement. The board stated it “strongly condemns the indiscretions” regarding leaked investigation details published in Swiss media.
Schwab accused the board of violating an agreement regarding media discretion, stating: “I feel deceived. I am willing to defend my interests with all my strength, even in the context of a legal dispute.”
<cite>The investigation also scrutinized some 900,000 Swiss francs ($1.12 million) in expenses submitted by Schwab and his wife Hilde that allegedly lacked sufficient ties to WEF activities, the newspaper said.</cite> These included foreign trips that investigators deemed unrelated to business.
The Global Competitiveness Report was discontinued in 2020, with the WEF citing uncertainty surrounding the Covid-19 pandemic. The timing now appears significant given allegations of repeated political interference in the rankings.
Homburger’s final report will be submitted to Swiss regulators who oversee non-profit organisations. The board may also refer details to prosecutors depending on the investigation’s conclusions.
The scandal threatens to undermine the WEF’s carefully cultivated image as a facilitator of global dialogue and progress. Founded on principles of “stakeholder capitalism,” the organisation now faces questions about its own governance and ethical standards.
As investigations continue, the dispute between Schwab and the board has intensified despite a joint statement in June claiming they were working towards “normalising” their relationship.
The preliminary findings represent a dramatic fall from grace for Schwab, who built the WEF into one of the world’s most influential forums whilst becoming synonymous with the concept of the “Davos Man” – a term describing the global elite’s perceived detachment from ordinary citizens.
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Image Credit:
Klaus Schwab – World Economic Forum on the Middle East, Dead Sea, Jordan, 2007 – Photo by World Economic Forum / Norbert Schiller, licensed under CC BY-SA 2.0, via Wikimedia Commons.
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