Latest news with #KlausSchwab
Cedar News
30 minutes ago
- Business
- Cedar News
WEF Launches Internal Probe into Klaus Schwab Over Misconduct Allegations
An internal investigation by the World Economic Forum (WEF) has reportedly found that founder Klaus Schwab engaged in a pattern of workplace misconduct, according to a report by The Wall Street Journal. The probe uncovered allegations of inappropriate behavior and unauthorized spending by Schwab and his wife. These findings have raised serious concerns about governance and financial oversight within the organization, which is known for hosting the annual Davos summit attended by global leaders and corporate executives. While the WEF has not yet issued a formal public statement regarding the outcome of the investigation, internal sources cited by the WSJ suggest mounting pressure on the organization to respond. The future role of Schwab, who has led the forum since its founding in 1971, is now in question as scrutiny increases both internally and publicly.
Yahoo
an hour ago
- Business
- Yahoo
World Economic Forum Probe of Klaus Schwab Finds Unauthorized Spending, Inappropriate Behavior
An internal probe at the World Economic Forum found that its founder Klaus Schwab engaged in a pattern of workplace misconduct over the past decade, including unauthorized spending by him and his wife, bullying behavior and inappropriate treatment of female staffers. The probe, which the Forum's board launched this April in response to a whistleblower complaint, found evidence that Schwab made comments to a female employee that were suggestive and potentially inappropriate. 'Do you feel that I am thinking of you,' Schwab wrote in one late-night June 2020 email to a senior female executive. Morgan Stanley's Screening of Wealth-Management Clients Draws More Scrutiny Why Are Stocks Up? Nobody Knows Kohl's and Opendoor Headline a New Class of Meme Stocks Hershey Lifts Candy Prices, Citing High Cocoa Costs Musk Allies to Raise Up to $12 Billion for xAI Chips as Startup Burns Through Cash The preliminary findings were described by people familiar with the matter and documents reviewed by The Wall Street Journal. Through a spokesman, Schwab broadly rejected the findings, defending his 55-year tenure as the Forum's public face and most senior executive. He said that he always treated women respectfully and that he and his wife never sought to gain financially from their roles at the organization that consumed much of their lives. The conflict threatens to deepen the schism between Schwab and trustees seeking to chart a path forward for the Forum without the man who built it into a global enterprise best known for the annual Davos confab of CEOs and billionaires in the Swiss Alps. A Forum spokesman declined to comment. Schwab, who is 87 years old, stepped down over Easter weekend and no longer has a role with the Forum. He has pushed back aggressively against the allegations threatening his legacy that saw him share the stage for decades with the world's most powerful business and political leaders. Investigators told Forum trustees that their interviews found Schwab treated the organization like his 'fiefdom,' routinely condoning harassment and discrimination and resorting to intimidation and fear to get what he wanted. There was little oversight by the Forum or trustees of the questionable travel and other expenses, they said. Schwab and his wife, Hilde Schwab, filed more than $1.1 million in travel expenses that investigators have flagged as questionable. Much of that paid for first-class flights for Hilde Schwab to accompany her husband on Forum-related trips where she had no formal role, according to the preliminary findings. Separately, the investigators have cited around $63,000 for trips by the Schwabs to Venice, Miami, the Seychelles and other destinations, with little or no evidence of business being involved. The most recent trip cited, to Morocco, spanned a week in late December 2024 to early January 2025. They said Schwab received gifts including Russian tea sets, personalized Tiffany cufflinks and fur coats, in violation of policies. Investigators cited 14 hotel massages billed to the Forum, either on his corporate credit card or through junior employees' cards, adding that Schwab later paid for about half of them. Schwab said he always told assistants to bill him for massages. The preliminary findings were described in confidential documents that were recently presented to some Forum trustees, according to people familiar with the investigation. Investigators also discussed the findings with Schwab in a recent meeting that spanned more than five hours. The Swiss law firm conducting the probe, Homburger, is expected to consider Schwab's feedback before finalizing the results and making recommendations to Forum trustees by the end of August. Homburger declined to comment. The full Forum board of trustees will pass the final report to Swiss authorities that oversee nonprofits and will discuss whether to refer the report to prosecutors, people familiar with their plans say. 'Throughout this journey, Hilde and I never used the Forum for personal enrichment,' Schwab said in a written statement. In additional comments through the spokesman, he cited his long-fixed 1 million Swiss franc, equivalent to $1.3 million, annual salary. Schwab said he also received a fixed allowance of 100,000 Swiss francs a year to cover dinners and other costs of entertaining guests related to his job, primarily at his residence. He said through the spokesman that he entrusted assistants to separate private travel costs from work-related expenses, and that he intends to reimburse the Forum for any personal expenses that he and his wife should have paid, pending results of the investigation. But Schwab said that any travel costs the Forum paid on behalf of his wife to accompany him on work trips were justified because of a 'good-faith understanding,' rather than a written policy, between the Forum and the separate Schwab foundation she chaired. She hasn't earned a salary since 1973, he added. Through the spokesman, Schwab said he donated most gifts he received to charity and displayed others, including Russian tea sets, at Forum headquarters. He said he didn't specifically recall other gifts described by investigators. The whistleblower complaint from this spring was filed almost a year after a Wall Street Journal investigation described a toxic culture for women and Black employees at the organization. Investigators found additional evidence along those lines. They found that Schwab sidelined pregnant women or women over age 40 at times in ways that affected their careers, mental health or both. Schwab, through the spokesman, said he always treated women respectfully. About the 2020 late-night email to a female staffer cited by investigators, Schwab said such communications didn't reflect his character and added that he treated the Forum like a family, and saw himself as a father figure to many young employees. Lawyers interviewed more than 50 people as of earlier this month, including current and former employees, and were still conducting interviews and reviewing documents. The investigation follows a spectacular blowup at the top of the Forum, which kicked off after trustees told Schwab they intended to investigate a fresh wave of whistleblower allegations against him and his wife. Schwab argued he had already been subjected to a monthslong probe and threatened to pursue investigations not only of the trustees, but also of the whistleblowers leveling accusations against him. That earlier Forum investigation, led by former U.S. Attorney General Eric Holder, senior counsel at U.S. law firm Covington & Burling, spurred a high-level reorganization of reporting lines earlier this year and departures of senior executives. But Klaus Schwab emerged largely unscathed; the Forum at the time said allegations against him weren't substantiated. Much of the drama in recent months has played out publicly in ways particularly problematic for a body that has preached governance and social responsibility, with Schwab as its chief orator. Investigators have found Schwab's inappropriate behavior extended to personal intervention in the results of the Forum's high-profile Global Competitiveness Report, which ranks countries on factors ranging from financial stability to corruption. One recent year, Schwab said he approved of the methodology but wanted changes because he was worried about India's poor score and the U.K.'s climb up the ranks post-Brexit, investigators found. He leaned on employees to bump up India, they found, citing his hard-won relationship with its prime minister, and to demote the U.K. so that Brexit supporters wouldn't be able to cheer the country's move up the rankings. Through the spokesman, Schwab said he only intervened in Forum research when necessary to protect the integrity of high-profile reports. Some of the findings were earlier reported by Swiss outlet SonntagsZeitung. Investigators also cited lavish spending on the interior of a luxury property called Villa Mundi, a costly project near Lake Geneva in Switzerland that they say the Schwabs in late 2019 steered to a design firm they had hired for personal work. Hilde Schwab then largely controlled use of the Forum-owned property, reserving much of it for private use, investigators have found. The Schwabs deny directing the refurbishment project or use of the building. The couple used a Forum-funded driver on some vacations and expensed their residential phone line and a mobile phone used by their maid in Geneva. Various expenses covered by the Forum as benefits for the couple weren't reported on income statements, investigators found. Schwab said through the spokesman that he used the driver, who doubled as security, when justified to manage security risks. He said the home phone line and maid's mobile were valid Forum expenses because of the volume of work and Forum-related entertaining the Schwabs did at home. In his statement, Schwab said he hopes the organization continues to thrive, adding, 'Even if I am no longer part of it, I deeply hope the Forum will remain a trusted bridge-builder in a divided world.' Write to Jenny Strasburg at and Shalini Ramachandran at Capital One Swings to Loss After Discover Financial Acquisition Silicon Valley's Favorite Podcast Is Now Hot in Washington Too Trump Expects $20 Million More in Ad Dollars From '60 Minutes' Settlement GM Profit Shrinks After $1.1 Billion Tariff Hit At the Fed's Banking Conference, Sam Altman, Capital Rules and Avoiding the Powell Drama Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Sky News AU
8 hours ago
- Business
- Sky News AU
Klaus Schwab and World Economic Forum faces mounting scrutiny amid ongoing investigation
Klaus Schwab and the World Economic Forum are under investigation for allegedly undermining the UK's 2016 Brexit vote as scrutiny continues to mount for the former WEF chief and the organisation.
Time of India
20 hours ago
- Business
- Time of India
WEF spat heats up as founder Klaus Schwab denies misconduct
"I am in a position to refute all the accusations brought up against me," Schwab said in a statement, responding to a report in SonntagsZeitung. The Swiss newspaper said preliminary findings by Swiss law firm Homburger support allegations that Schwab manipulated economic reports published by the forum and submitted unjustifiably high expense claims. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ZURICH: World Economic Forum founder Klaus Schwab denied allegations of misconduct that were reportedly substantiated by a formal investigation and accused the board of trustees of violating an agreement regarding media discretion on the matter."I am in a position to refute all the accusations brought up against me," Schwab said in a statement, responding to a report in SonntagsZeitung. The Swiss newspaper said preliminary findings by Swiss law firm Homburger support allegations that Schwab manipulated economic reports published by the forum and submitted unjustifiably high expense investigation, commissioned by the WEF's board of trustees, is examining a range of accusations against the 87-year-old, including claims he used the forum's resources for personal abruptly resigned from the WEF in April after the misconduct allegations emerged, sparking a clash with the board. A successor has yet to be figures linked to the role have included BlackRock Vice Chairman and former Swiss National Bank President Philipp Hildebrand , who joined the board of trustees in May, and European Central Bank President Christine Lagarde , who until recently was considered the top candidate by both Schwab and the organization, Bloomberg previously has said she first intends to complete her ECB term, which runs until October WEF board of directors is currently led by former Nestle Chairman Peter Brabeck-Letmathe on an interim his statement Sunday, Schwab said he made himself available for an interview with Homburger on July 15. He was told he would have access to a draft of the report to respond to the allegations. He has yet to see a draft, a spokesperson added in a separate statement."In this respect I feel deceived," Schwab said. "I am willing to defend my interests with all my strength, even in the context of a legal dispute."A WEF spokesperson declined to comment when contacted by Bloomberg, stating that the organization would respond once the investigation concludes, likely at the end of SonntagsZeitung report intensifies an ongoing dispute between Schwab and the board of trustees at WEF and comes just weeks after the two parties issued a joint statement claiming they were working toward "normalizing" their relationship and resolving the to excerpts cited by the newspaper, Homburger's investigation found that Schwab repeatedly intervened to influence country rankings in the WEF's Global Competitiveness Report for political investigation also scrutinized some 900,000 Swiss francs ($1.12 million) in expenses submitted by Schwab and his wife Hilde that allegedly lacked sufficient ties to WEF activities, the newspaper said.
Gulf Insider
21 hours ago
- Business
- Gulf Insider
World Economic Forum (WEF) Founder Denies He Fudged Data, Racked Up $1.1M In Expenses
Klaus Schwab, the 87-year-old architect of Davos and the WEF's global elite gatherings, slammed the organization's board of trustees on Sunday, accusing them of breaking a confidentiality deal by letting media outlets get wind of the allegations. 'I am in a position to refute all the accusations brought up against me,' Schwab said in a statement after Swiss newspaper SonntagsZeitung detailed preliminary findings from a law firm's probe. The investigation, conducted by Swiss law firm Homburger and ordered by the WEF's own board, reportedly found that Schwab interfered with the forum's flagship economic rankings to favor political allies and avoid controversy – and submitted 900,000 Swiss francs (about $1.1 million) in expenses that investigators say lacked proper justification. Three months ago we reported that Schwab was under investigation by the WEF after a whistleblower alleged financial and ethical misconduct by Mr. 'eat the bugs' and his wife. In an anonymous letter from sent to the board of directors by 'current and former Forum employees,' Schwab and his wife are accused of commingling their personal affairs with WEF resources without proper oversight, and much more… Among the most serious allegations: 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. His wife Hilde, a former Forum employee, scheduled 'token' Forum-funded meetings in order to justify luxury holiday travel at the organization's expense. 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 Other allegations include the Schwab family's use of Villa Mundi – a luxury property bought before the pandemic by the Forum located next to the organization's Geneva headquarters, which the whistleblower letter maintains that Hilde Schwab maintains tight control over, and which the forum paid $30 million to purchase and another $20 million to renovate – also overseen by Hilde. Schwab says he paid the WEF back for said 'in-room massages', and denied the allegations about luxury travel and withdrawing funds. According to the WEF, its board unanimously supported the decision to launch an independent investigation 'following a whistleblower letter containing allegations against former Chairman Klaus Schwab. This decision was made after consultation with external legal counsel.' Schwab abruptly resigned from the WEF in April after the allegations surfaced. A replacement has yet to be named. The report claims Schwab personally intervened to tweak the WEF's Global Competitiveness Report to protect ties with key leaders like Indian Prime Minister Narendra Modi. In 2017, Schwab allegedly ordered a delay in releasing the rankings to avoid souring relations with India, whose score took a dive. He also reportedly advised holding back on boosting the UK's ranking to avoid giving ammo to Brexit supporters. In another incident in 2022, Schwab allegedly shared draft rankings with an unnamed country official whose position slipped, pushing to kill that year's report entirely. The WEF later blamed the cancellation on COVID-related disruptions. Schwab insists he's been deceived, saying he offered to sit for an interview with investigators on July 15 and was promised a chance to review the findings before any conclusions were published. 'In this respect I feel deceived,' he said. 'I am willing to defend my interests with all my strength, even in the context of a legal dispute.' The WEF stayed tight-lipped when contacted by Bloomberg, saying only that it would comment once the probe concludes, likely by late August. Sunday's revelations ramp up an already heated battle between Schwab and his former colleagues. Just weeks ago, the WEF and its founder released a joint statement claiming they were working to 'normalize' their strained relationship. But with accusations of data manipulation and lavish spending now in the open, that détente looks increasingly shaky. Source Zero Hedge
