Klaus Schwab Steps Down After 50 Years: Legacy of the Founder of the World Economic Forum and Global Leadership Icon

After more than five decades at the leadership of one of the most influential international institutions, Klaus Schwab, the visionary founder and iconic face of the World Economic Forum (WEF), has officially stepped down as Chairman and member of the Board of Trustees. Schwab, a German-born economist with Swiss roots, has been a pivotal figure in shaping global discourse and fostering international cooperation. 

Established in 1971, the WEF under Schwab's guidance transformed into the world’s premier gathering of global power players, held annually in the picturesque Swiss town of Davos that convene leaders from politics, business, and civil society. His aim was to create a space where business leaders, policymakers, and academics could collaborate on global issues. 

The WEF’s slogan, “Committed to improving the state of the world,” echoes Schwab’s enduring message about global cooperation in an increasingly fragmented world. The annual meeting in Davos, Switzerland, became a hallmark event, attracting influential figures from various sectors to engage in meaningful dialogue. Presidents, prime ministers, tech giants, and thought leaders have all graced the snowy stages of Davos to discuss pressing global challenges, economic futures, and technological innovation. 

From China’s Xi Jinping to Russia’s Vladimir Putin and the U.S. President Donald Trump, Schwab welcomed some of the most influential—and controversial—leaders of the modern era. The WEF became a symbol of globalization, a stage for mega-deals, policy declarations, and cooperative agendas. However, it has also attracted criticism for being elitist and out of touch with ordinary citizens.

As early as 1996, Schwab warned of the risks of ignoring public discontent in industrial democracies, predicting the rise of populism — a prediction that came true decades later with events such as Brexit and the election of Donald Trump as U.S. President. 

Allegations of internal workplace misconduct, criticisms of exclusivity, and the rise of anti-globalization sentiments have shadowed its operations in recent years. The COVID-19 pandemic, Ukraine war, and protectionist trade policies added further stress to the forum’s agenda, highlighting the challenges of navigating diplomacy in an era of uncertainty.

A proponent of stakeholder capitalism, Schwab advocated for businesses to serve shareholders, employees, communities, and the environment. This philosophy underpinned the WEF's initiatives and publications, emphasizing his commitment to multi stakeholder engagement and sustainable development. ​

Schwab's commitment to social innovation led to the creation of several key initiatives:

• Schwab Foundation for Social Entrepreneurship (1998): Co-founded with his wife Hilde, this foundation supports social entrepreneurs addressing societal challenges.

• Forum of Young Global Leaders (2004): Established to recognize and connect exceptional leaders under 40, fostering a community dedicated to shaping a better future.​

• Global Shapers Community (2011): A network of young people driving dialogue and action in their local communities.​

Schwab authored several influential works, including "The Fourth Industrial Revolution," exploring how emerging technologies are reshaping society. His insights have guided discussions on innovation, governance, and ethical considerations in the digital age.

Throughout his career, Schwab received numerous accolades, including honorary doctorates and national honors from countries such as Germany, France, Japan, the UK, and China. His efforts have left an indelible mark on global collaboration and policy-making.

In an extraordinary board meeting, Peter Brabeck-Letmathe, former CEO and Chairman of Nestlé SA, was unanimously selected as interim chairman while the search for Schwab’s permanent successor begins. Brabeck-Letmathe, already serving as Vice Chairman, brings deep institutional knowledge and a steady hand to guide the transition.

The board of trustees remains an elite circle, including notable figures such as:

• Marc Benioff, CEO of Salesforce

• Larry Fink, CEO of BlackRock

• Al Gore, former U.S. Vice President

• Christine Lagarde, President of the European Central Bank

• Kristalina Georgieva, IMF Managing Director

Schwab’s departure is more than a leadership change—it symbolizes a generational shift. The WEF now stands at a crossroads, challenged to redefine its relevance in a world skeptical of elite institutions. Yet, its mission remains critical: to foster dialogue, shape economic recovery, and push for inclusive, sustainable progress amid accelerating change.

Klaus Schwab didn’t just build a forum—he built a global institution, one that influenced policy, innovation, and leadership worldwide. As the world enters a new era of complexity and opportunity, Schwab leaves behind a legacy and challenge to the next generation: keep the conversation alive, inclusive, and impactful.

“At a time when the world is undergoing rapid transformation, the need for inclusive dialogue to navigate complexity and shape the future has never been more critical.” – World Economic Forum