World Economic Forum founder Klaus Schwab investigated for workplace misconduct, fund misuse — He says it's all false
In one instance, Schwab reportedly sent a late-night email to a senior female executive in June 2020, asking: 'Do you feel that I am thinking of you?' According to the news outlet, investigators cited the message as potentially inappropriate and indicative of a broader culture of favoritism and fear under Schwab's leadership.
Schwab and his wife, Hilde Schwab, are alleged to have submitted over $1.1 million in travel expenses, much of which investigators flagged as questionable. These included first-class flights for Hilde—who held no formal role at the Forum—and personal trips to Venice, Miami, Seychelles, and Morocco totaling around $63,000, with minimal evidence of business activity, WSJ reported.
Investigators also noted 14 hotel massages billed to the World Economic Forum through corporate cards or junior staff, though Schwab said he reimbursed about half and had instructed aides to bill him personally.
'Throughout this journey, Hilde and I never used the Forum for personal enrichment,' Schwab said in a statement via a spokesman. He maintained that any mistakes were unintentional and pledged to repay any misallocated funds after the probe's final report.
Interviews with over 50 current and former staff painted a picture of an organization ruled by fear. Schwab allegedly sidelined pregnant women and older female employees, affecting their careers and mental well-being. One source described Schwab's leadership style as operating the Forum like his 'fiefdom', using intimidation to maintain control.
Schwab, 87, stepped down, ending his 55-year tenure as WEF's chief. The Swiss law firm Homburger, leading the investigation, is expected to finalize its findings by August-end and submit them to Forum trustees and potentially Swiss prosecutors, WSJ reported.
Schwab defending his legacy said he saw himself as a father figure to many young employees.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
3 hours ago
- Mint
Travelling to Switzerland? Shopping may cost more as Donald Trump imposes 39% tariff
Prices for the eponymous Swiss watches, Swiss chocolate and Swiss cheese could skyrocket in a week as a result of US President Donald Trump's trade war. Switzerland, home to some the world's most recognisable luxury brands, now faces an upcoming 39 per cent tariff from the US Industry groups on Friday warned that both Swiss companies and American consumers could pay the price. Trump signed an executive order Thursday placing tariffs on many US trade partners — the next step in his trade agenda that will test the global economy and alliances — that's set to take effect next Thursday. The order applies to 66 countries, the European Union, Taiwan and the Falkland Islands. In Switzerland, officials failed to reach a final agreement with the US after Trump initially threatened a 31 per cent tariff in April. Swiss companies will now have one of the steepest export duties — only Laos, Myanmar and Syria had higher figures, at 40-41 per cent. The 27-member EU bloc and Britain, meanwhile, negotiated 15 per cent and 10 per cent tariffs, respectively. The Swiss government spent Friday — the country's National Day — reeling from the news. Swiss President Karin Keller-Sutter said that the 39 per cent figure was a surprise, because negotiators had hashed out a deal last month with the Trump administration that apparently wasn't approved by the American leader himself. 'We will now analyze the situation and try to find a solution," Keller-Sutter told reporters. 'I can't say what the outcome will be, but it will certainly damage the economy.' The US goods trade deficit with Switzerland was USD 38.5 billion last year, a 56.9 per cent increase over 2023, according to the Office of the United States Trade Representative. Keller-Sutter said that she believes Trump ultimately chose the 39 per cent tariff, because the figure rounded up from the USD 38.5 billion goods trade deficit. 'It was clear that the president was focused on the trade deficit and only this issue,' she said. For Swiss watch companies, whose products already come with price tags in the tens of thousands — if not the hundreds of thousands — of euros, a timepiece for an arm could cost a leg, too, come next week. The 39 per cent figure was especially galling to the Federation of the Swiss Watch Industry, because Switzerland in 2024 got rid of import tariffs on all industrial goods. 'As Switzerland has eliminated all custom duties on imported industrial products, there is no problem with reciprocity between Switzerland and the US,' the federation said in a statement. 'The tariffs constitute a severe problem for our bilateral relations.' Swiss watch exports were already facing a prolonged slowdown, with significant declines in the United States, Japan and Hong Kong, according to the federation's June figures, the most recent available. Swatch and Rolex declined to comment Friday. Representatives for Patek Philippe, IWC and Breitling didn't respond to requests for comment. Multinational chocolatiers Nestlé and Lindt & Sprüngli said they have production lines in the US for American customers. But small- and medium-sized Swiss companies are predicted to suffer under the tariffs. Roger Wehrli, chief executive of the Association of Swiss Chocolate Manufacturers. also known as Chocosuisse, said Switzerland exports 7 per cent of its chocolate production to the US. It's not just the 39 per cent tariff that's the issue. Once the manufacturers factor in the exchange rate between US dollars and Swiss francs (USD1 to 1.23 francs on Friday), Wehrli said, it's close to a 50 per cent increase in costs for the Swiss companies. And that's a big number to pass on to American consumers, if the already-slim margins aren't further reduced. 'I expect that our industry will lose customers in the United States, and that sales volumes will decrease heavily,' he told The Associated Press. Wehrli said that he wants Swiss chocolatiers to sell to other markets around the globe to make up the difference. Still, he hopes American customers remember that Swiss quality beats cheaper quantity. 'I think even if prices for Swiss chocolate increase due to the very high tariffs, I think it's worth (it) to buy Swiss chocolate," he said. 'It's worth (it) to really eat it consciously and to really enjoy it instead of eating a lot.' Swiss pharmaceuticals powerhouse Roche says that it's working to ensure its patients and customers worldwide have access to their medications and diagnostics amid the Trump tariff war. 'While we believe pharmaceuticals and diagnostics should be exempt from tariffs to protect patient access, supply chains and ultimately future innovation, we are prepared for potential tariffs being implemented and confident in managing any impacts,' the statement said. The company in April announced that it plans to invest $50 billion in the United States over the next five years, creating 12,000 jobs. The company already employs more than 25,000 people in the US. Meanwhile, Novartis, another major Swiss pharmaceutical firm, said in a statement that it was reviewing Trump's executive order. 'We remain committed to finding ways to improve access and affordability for patients,' it said.
India Today
5 hours ago
- India Today
Donald Trump reignites global trade war with tariffs
WHAT'S NEWTrump imposed tariffs on dozens of US trading partners, including 69 countries, while finalising deals with the UK and EU. The tariffs varied, with Syria facing the highest rate at 41% and Canada receiving a 35% levy starting August IT MATTERSThe US now has one of its most protectionist trade regimes in nearly a century, with average tariffs six times higher than last year. Some partners get modest relief, but others face higher costs to sell in the US. This will disrupt global supply chains and fuel trade tensions. advertisementIN NUMBERSSixty-nine countries face new US tariffs.41%: Highest rate, applied to Syria.25%: Tariff on select Indian exports.10%: Global minimum rate.~15%: New average US tariff rate — six times higher than last year.19 countries see higher duties; 42 get reductions; 8 DEPTH: The United States has changed tariff rates on some of its biggest trade partners. Several Asian economies, including Japan, South Korea, Taiwan, and Vietnam, will see lower duties. India's rate is trimmed slightly to 25%. The UK and Brazil remain at 10%. Switzerland faces a sharp rise to 39%, the highest among major partners. Thailand's rate is cut nearly in half. The new rates take effect on August 7 as part of the US push to reset trade some, the revisions offer relief. Forty-two trading partners will see lower rates than earlier proposals, reflecting concessions in negotiations. But 19 countries face steeper tariffs. The White House says the measures reward cooperation and punish resistance to US trade demands. Markets reacted cautiously. Asian currencies and stock indexes dipped, with the Taiwan dollar down for a seventh straight day and the Swiss franc slipping. But the muted response suggests traders had already priced in much of the shift ahead of the August 1 deadline Trump had signalled. BIG PICTUREThe US targets countries based on their trade balance. Countries that buy more US goods face a 10 per cent tariff, while those with a small surplus face 15 per cent. Others face higher new rates are one of the biggest protectionist moves in US policy since the 1930s. Trump's negotiations ended with new rates similar to or lower than those on April THEY SAIDDonald Trump, U.S. President: "America will no longer be the sucker at the table. These tariffs will bring fairness back to trade."Lai Ching-te, Taiwan President: "We hope the 20% rate will be temporary. Our goal is to reach an agreement that protects our key industries."US Trade Representative's Office: "This is a calibrated approach to reward cooperation and push back against unfair trade practices."- EndsTune InMust Watch
The Hindu
6 hours ago
- The Hindu
FIFA's decisions can be challenged outside Switzerland: European Court of Justice
The European Union's top court ruled on Friday that the decisions of world football's governing body, FIFA, can be challenged outside Switzerland, opening up a system that currently binds athletes, officials, and clubs to accept verdicts there. A statement from the European Court of Justice said that tribunals in the 27 EU member states 'must be able to carry out an in-depth review of those awards for consistency with the fundamental rules of EU law.' The ECJ ruling in Luxembourg means that EU national courts should be able to review verdicts from the Swiss-based Court of Arbitration for Sport (CAS), involving other sports authorities as well. Switzerland is not a member of the European Union. 'The awards made by the CAS must be amenable to effective judicial review,' the statement said. It said that 'national courts or tribunals must be empowered to carry out ... an in-depth judicial review' to ensure that CAS rulings 'are consistent with EU public policy.' There was no immediate comment from FIFA or CAS. The decision could end a decade-long legal fight by Belgian football club RFC Seraing and Maltese investment fund Doyen Sports. They opposed FIFA rules prohibiting third-party ownership of a player's registration and transfer rights, and in 2015, asked a commercial court in Brussels to review if those rules breached EU law. The ECJ did not specifically rule on third-party ownership as such, only the scope of CAS decisions. 'From a quick reading of the decision, it's clear that this is a complete victory for our clients and for the rule of law in the EU,' Seraing's lawyer, Jean-Louis Dupont, told The Associated Press. CAS was created in 1984 to give sports a unified and binding legal forum for settling disputes and appeals based in the International Olympic Committee's home city of Lausanne, Switzerland. It is the mandatory path for athletes to challenge disciplinary and appeal judgments by Olympic sports federations. It rules on cases across dozens of sports and is a key authority in doping cases. READ — La Liga 2025-26: Real Madrid's request to postpone opener denied, report says Football is by far the biggest client in the CAS caseload of about 950 registered each year. FIFA's contribution of 2.5 million Swiss francs (USD 2.75 million) to CAS in 2023 was more than 10 per cent of the court's revenue that year. CAS verdicts can be challenged at Switzerland's supreme court in Lausanne on limited procedural grounds and are rarely overturned. Seraing and Doyen lost at the Swiss Federal Tribunal in 2018. The ECJ said any CAS decision that binds other courts or tribunals from acting 'are contrary to EU law.' The ruling marks a new legal blow to the authority of sports bodies in Switzerland. The same European court in Luxembourg has handed down two other major rulings in the last two years under EU competition law—in the Super League case and the Lassana Diarra transfer dispute—that challenged the authority of football bodies FIFA and UEFA.
