After more than five decades at the helm, Klaus Schwab, the founder and driving force behind the World Economic Forum (WEF), has announced his intentions to step back from his executive role. This transition marks a significant milestone for the organization that Schwab established in 1971, initially known as the European Management Forum.
In an email to staff on Tuesday, Schwab revealed his plans to relinquish his position as executive chairman and transition to a non-executive chairman role. This change, however, is contingent upon approval from the Swiss government, a process Schwab expects to be finalized before the WEF’s annual meeting in 2025.
Notably, Schwab has not yet named his successor, but he acknowledged that over the past year, the organization’s executive board, under the leadership of President Børge Brende, a former Norwegian conservative leader, has assumed full executive responsibility.
The World Economic Forum did not immediately respond to a request for comment from Semafor on Schwab’s decision. However, it is undeniable that Schwab’s influence and leadership have been inextricably intertwined with the organization’s identity for more than half a century.
What began as a modest gathering has evolved into a global phenomenon, with the annual WEF meeting in Davos attracting thousands of attendees, including dozens of high-ranking world leaders and CEOs. In 2024 alone, the organization reported the participation of more than 50 heads of state.
The Forum’s operations have often been described as akin to a family business, with Schwab’s children appointed to high-ranking positions and his wife, Hilde, overseeing the organization’s foundation and award ceremonies in Davos.
In recent years, the World Economic Forum has navigated a shifting political landscape, steering back toward a more centrist position after embracing leftist cultural and economic positions. This transition has not been without its challenges, as speculation surrounding succession at the WEF roiled the gathering in 2023, according to a Politico article that floated potential names.
Despite its nonprofit status, the World Economic Forum has flourished as a remarkable business enterprise. In the year ending March 2023, the organization reported nearly $500 million in revenue and a substantial cash reserve of 200 million Swiss francs.