The World Economic Forum (WEF) has launched an independent investigation into its founder, Klaus Schwab, following allegations of misconduct detailed in a whistleblower letter. The letter, reportedly sent by current and former WEF staff, accuses Schwab of financial misconduct, including misuse of WEF funds, asking junior employees to withdraw cash from ATMs on his behalf, and using Forum resources for private expenses like in-room massages at hotels. It also alleges that Schwab’s wife, Hilde, used WEF-funded meetings to justify luxury holiday travel.
The WEF’s board, which includes figures like former U.S. Vice President Al Gore and European Central Bank President Christine Lagarde, unanimously supported the probe, led by the Audit and Risk Committee with external legal counsel. Schwab, who resigned as chairman on April 21, 2025, denies the allegations, calling them “false” and indicating plans to sue those responsible for the letter. The WEF emphasizes that the allegations remain unproven and awaits the investigation’s outcome. This follows earlier reports of workplace culture issues at the WEF, including allegations of harassment and discrimination, which the organization has denied.
The whistleblower letter, sent anonymously by current and former World Economic Forum (WEF) employees to the WEF’s board last week, contains detailed allegations of financial and ethical misconduct by founder Klaus Schwab and his wife, Hilde Schwab. The letter, first reported by The Wall Street Journal, prompted an independent investigation and Schwab’s abrupt resignation as chairman on April 21, 2025. The letter accuses Klaus Schwab of using WEF resources for personal expenses, including charging private, in-room massages at hotels to the Forum’s account. Schwab reportedly reimbursed these charges, but the letter claims this reflects improper use of organizational funds.
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Schwab allegedly instructed junior employees to withdraw thousands of dollars in cash from ATMs on his behalf, raising concerns about transparency and accountability. The letter highlights the Schwab family’s use of Villa Mundi, a luxury property purchased by the WEF for $30 million and renovated for an additional $20 million, located near the WEF’s Geneva headquarters. Hilde Schwab is accused of maintaining tight control over the property, which was allegedly used for personal purposes beyond official Forum events.
The letter claims Hilde Schwab, a former WEF employee, organized “token” WEF-funded meetings to justify luxury holiday travel at the Forum’s expense. These trips were allegedly disguised as business-related but served personal interests. Her oversight of Villa Mundi’s renovations is cited as an example of the Schwab family commingling personal and organizational affairs without proper oversight.
The letter accuses Schwab of systemic governance failures, describing the WEF as his “personal empire” where he operated with “unchecked authority” for decades. It claims he mixed personal affairs with Forum resources without adequate board supervision. It revisits prior allegations of workplace culture issues, including Schwab’s alleged mistreatment of female employees and allowing sexual harassment and discrimination to go unchecked. These claims echo a 2024 Wall Street Journal report, which the WEF denied after an internal probe found no legal violations.
The letter is described as a “comprehensive account” of governance failures and abuses of power, written by current and former employees. It emphasizes long-standing issues under Schwab’s leadership. It was sent anonymously, likely due to fear of retaliation, and prompted an emergency board meeting on Easter Sunday, April 20, 2025, where the board voted unanimously to launch an independent investigation.
Schwab’s Response
Schwab and his wife deny all allegations, with a spokesperson calling them “false” and stating Klaus Schwab intends to sue the letter’s authors and anyone spreading the claims. Schwab has reportedly described the accusations as “mistruths.” Schwab claims he reimbursed the WEF for any personal expenses, such as the in-room massages, and denies misuse of funds or improper use of Villa Mundi. The letter accelerated Schwab’s exit, disrupting a planned transition set to conclude by January 2027. His immediate resignation followed the board’s decision to investigate, suggesting internal tensions.
The allegations build on prior scrutiny of the WEF’s workplace culture, including a 2024 investigation into harassment and discrimination claims, which the WEF said were unsubstantiated. The WEF has emphasized that the allegations remain unproven and is awaiting the investigation’s outcome, led by the Audit and Risk Committee with external legal counsel. The letter’s anonymity and the lack of public disclosure of its full contents limit further details, but it has significantly impacted the WEF’s leadership and public image.