The World Economic Forum (WEF) announced Tuesday, April 22, that it has launched an internal investigation into its founder, Klaus Schwab, following allegations outlined in a whistleblower letter first obtained by The Wall Street Journal. The announcement came just one day after Schwab, 87, resigned as chairman effective immediately.
“Following my recent announcement, and as I enter my 88th year, I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect.”
Klaus Schwab, former chairman of the Board of Trustees of the World Economic Forum
Allegations within whistleblower letter
According to The Wall Street Journal, an anonymous letter sent to the WEF’s board last week raised concerns about “governance and workplace culture” within the organization. The letter alleged that the Schwab family intertwined personal matters and forum resources without proper oversight.
The claims included accusations that Schwab instructed younger staff members to withdraw large amounts of cash from ATMs for him and used forum funds to pay for private, in-room massages at hotels. His wife, Hilde, a former forum staff member, was also accused of arranging forum-sponsored meetings as a pretense to take luxury vacations at the organization’s expense, according to the whistleblower.
Response to allegations of financial and ethical misconduct
In a statement emailed to Reuters, the WEF said it “takes these allegations seriously, it emphasizes that they remain unproven, and will await the outcome of the investigation to comment further.”
A spokesperson for the Schwab family denied all the allegations mentioned in the whistleblower complaint, according to The Wall Street Journal. The spokesperson added that Schwab plans to pursue legal action against the author of the anonymous letter and anyone who “spreads these mistruths.”
Forum faces ongoing scrutiny
The WEF’s annual gathering in Davos, Switzerland, has faced criticism from both the political left and right, and is often characterized as an elitist event. The organization has also been subject to internal scrutiny. Reuters reported that the WEF board hired a law firm to investigate the forum’s workplace culture following reports of harassment and discrimination — allegations the forum has denied.
Trump’s history of criticism
President Donald Trump has frequently expressed skepticism and criticism of the World Economic Forum, particularly during his appearances at its annual meetings in Davos. At the 2025 WEF meeting, Trump reiterated his criticism of international trade practices, particularly targeting the European Union.
He accused the EU of imposing unfair regulations and taxes on American companies, describing their actions as a form of taxation and highlighting trade imbalances. Trump’s remarks often contrasted with the WEF’s emphasis on globalization and conflicted with forum priorities such as climate activism.
Trump famously mocked climate priorities at the WEF Annual Meeting in 2020, saying, “This is not a time for pessimism. This is a time for optimism. To embrace the possibilities of tomorrow, we must reject the perennial prophets of doom and their predictions of the apocalypse. They are the heirs of yesterday’s foolish fortune tellers.”
