Klaus Schwab Is Under Investigation for Financial Misconduct

Klaus Schwab is under investigation for financial misconduct days after stepping down as World Economic Forum Chairman.

The World Economic Forum announced on Tuesday that it has launched an investigation into its founder, Klaus Schwab, following a whistleblower letter alleging misconduct by the former chairman.

The announcement came a day after the 87-year-old Schwab stated that he was resigning as chairman, effective immediately, without providing a reason.

This is why he resigned so abruptly.

The Wall Street Journal, which first reported the probe, said an anonymous letter sent last week to the WEF’s board raised concerns about its governance and workplace culture, including allegations that the Schwab family mixed their personal affairs with the forum’s resources without proper oversight.

It included allegations that Klaus Schwab asked junior employees to withdraw thousands of dollars from ATMs on his behalf and used Forum funds to pay for private, in-room massages at hotels. It also alleged that his wife, Hilde, a former Forum employee, scheduled “token” Forum-funded meetings to justify luxury holiday travel at the organization’s expense.

Klaus Schwab denied the accusations and planned to sue. He said the family always paid the Forum back.

The board of trustees decided to open a probe during an emergency meeting on Easter Sunday. Schwab opted to resign immediately.

The letter also raises concerns about how Klaus Schwab treated female employees and how his leadership over decades allegedly allowed instances of sexual harassment and other discriminatory behavior to go unchecked in the workplace, allegations that were raised in a Wall Street Journal article and previously investigated by the Forum. The Forum disputed the Journal’s reporting at the time, and Schwab denied the allegations against him.

At this point, Schwab and the global board do not trust each other. They also don’t like the control his wife has.

Schwab said he didn’t have a chance to give his side. He forfeited his annual pension of five million francs, which is over six million USD, as a sign of good faith.

PowerInbox