Clas Schwab steps down as the World of Economic Forum president
Clas Schwab steps down as the World of Economic Forum president: The founder of the World Economic Forum (WEF), 87-year-old Klaus Schwab, has officially stepped down as chairman of the board of trustees, ending an era for the organization he led in Geneva for more than five decades. The WEF announced his immediate resignation at an extraordinary board meeting on April 21, 2025, appointing former Nestlé CEO Peter Brabeck-Letmathe as interim chairman until a permanent successor is found.
The path of a visionary
Schwab founded in the WEF in 1971, and initially as a European Management Forum, with aim of bringing together of the business leaders to discuss global economic issues. Under his leadership, the forum has become a key platform for international dialogue, attracting politicians, CEOs, academics and civil society representatives to its annual meetings in Davos, Switzerland. The Davos summit has become synonymous with global cooperation to address pressing challenges such as climate change, technological innovation and economic inequality.
Leadership transition
Schwab is stepping down after an earlier decision to step down as CEO in 2024 and take on a non-executive role. The WEF is undergoing a planned evolution in its governance, moving from an organization led by its founders to one run by a president and board of directors. Former Norwegian Foreign Minister Børge Brende currently chairs the WEF and oversees its day-to-day operations.
The organization stressed that the transition seeks to strengthen its mission of fostering public-private collaboration to address complex global challenges. The Board of Directors, now led by Brabeck-Letmathe, will continue to guide the WEF’s strategic direction during this time of change.
Legacy and Impact
Throughout his tenure, Schwab has positioned the WEF as a catalyst for global cooperation. He has supported initiatives such as the “Great Reset,” which advocates for sustainable development and shareholder capitalism in the wake of the COVID-19 pandemic. The Forum’s impact has extended beyond economic discussions to address issues such as social inclusion, environmental sustainability, and technological progress.
Despite criticism of its apparent elitism and exclusivity, the WEF, under Schwab’s leadership, has continued to play its role as a convening force, bringing together diverse stakeholders to discuss the world’s most pressing issues. The annual Davos meetings have hosted many world leaders, including Xi Jinping, Vladimir Putin, and Donald Trump, reflecting the Forum’s global reach.
Challenges and Controversies
In recent years, the WEF has faced internal challenges, including allegations of discrimination and workplace harassment. the former employee filed a lawsuit alleging pregnancy and racial discrimination, allegations that WEF has denied. In addition, several reports have analyzed the forum’s internal culture, leading to a debate about the need for organizational reform.
These controversies have highlighted the importance of the WEF’s efforts to improve transparency, inclusion, and accountability in its operations. The leadership transition represents an opportunity for the organization to address these issues and reaffirm its commitment to its core values.
Looking to the Future
As the WEF embarks on this new phase, the search for a permanent president is underway. The organization is focused on its mission to improve the state of the world through public-private partnerships. With Brabeck-Lettmathe as interim president and Brende as head of the executive board, the WEF aims to continue its role as a forum for dialogue and cooperation to address global challenges.
Schwab’s departure marks a significant moment in the WEF’s history, marking a generational change in leadership. His vision and dedication have left an indelible mark on the organization, making it a leading platform for international cooperation. As the WEF navigates this transition, it will seek to build on Schwab’s legacy and adapt to a changing global landscape.