Schwab remains one of the most influential personalities courting the global political and business elite.
World Economic Forum (WEF) founder Klaus Schwab has resigned from his position as chairman of the organization, according to an announcement issued on April 21.
“Following my recent announcement, and as I enter my 88th year, I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect,” Schwab said in a statement.
Schwab’s resignation was accepted at an extraordinary meeting held on April 20.
Schwab, 87, is being succeeded on an interim basis by Vice Chairman Peter Brabeck-Letmathe, who was unanimously appointed by the board as it formed a Search Committee for the selection of a future chair.
Schwab promoted the WEF’s premium annual event at the Swiss mountain village of Davos every year, bringing together the world’s political and business elite.
The Davos meeting has been criticized for being out of touch with the general public, while promoting grandiose climate ideals that are often flouted by global elites themselves.
Schwab founded the WEF in 1971.
“The World Economic Forum engages political, business, academic, civil society and other leaders of society to shape global, regional and industry agendas,” the organization’s website states.
Schwab is also the founder of the Forum of Young Global Leaders, whose members have included Pete Buttigieg, former U.S. transportation secretary; Rohit Chopra, former director of the Consumer Financial Protection Bureau; Ibram X. Kendi, director of the Center for Antiracist Research; Peter Thiel, co-founder of Paypal; and Mark Zuckerburg, founder of Facebook, according to Influence Watch.
Government leaders such as French President Emmanuel Macron and former Canadian Prime Minister Justin Trudeau have also been part of the program.
Global Impact
Schwab has faced criticism for the extraordinary influence the WEF has wielded over world leaders and the positions it has taken regarding contentious issues, including climate action and stakeholder capitalism.
Unlike a traditional business model, which focuses on improving shareholder value through asset expansion, stakeholder capitalism, introduced by Schwab in 1971, places emphasis on company involvement in social issues and bringing about societal changes.
This led to “a tripartite system of collective labor negotiations including company management, employees, and government,” according to the WEF.
“And it contributed to the welfare state in which companies and employees paid their fair share of taxes to fund public education, health care, and social security,” it stated.
