Klaus Schwab Faces $1.1 million Probe Amid Misconduct Claims

- WEF founder Klaus Schwab faces allegations of workplace misconduct and financial irregularities. - Internal probe flags $1.1 million in questionable expenses; final report due in August. On July 23, 2025, the *Wall Street Journal* reported that Klaus Schwab, founder of the World Economic Forum (WEF), faces an investigation following whistleblower allegations of decade-long workplace misconduct. The WEF board initiated the probe in April after concerns surfaced about misuse of funds, harassment, and abuse of power. The Swiss law firm Homburger is leading the investigation. The Homburger investigation flagged $1.1 million in questionable travel expenses linked to Schwab and his wife. The inquiry is also investigating allegations of bullying and inappropriate behavior toward female staff, including a late-night email sent to a senior female executive in June 2020. Schwab has denied the accusations, stating that any mistakes were unintended and pledging to repay any misallocated funds. On July 20, 2025, *Politico* reported on revelations from the newspaper *SonntagsZeitung*. The story alleged that Schwab may have manipulated the WEF's Global Competitiveness Report to serve political interests. Consequently, the ongoing investigation aims to determine whether these actions breached organizational standards and governance. In January, Schwab transitioned from Executive Chairman to a non-executive role as Chairman of the Board of Trustees. The WEF had announced this move in 2024 as part of a long-term governance plan; however, whistleblower allegations emerged shortly after his role change, prompting the WEF board to support an independent investigation. Preliminary findings from the probe have raised broader concerns about leadership and governance within the WEF. The final report is expected by the end of August. Swiss nonprofit regulators may review the report, which could lead to further legal action. In response, Schwab has filed a criminal defamation complaint in Switzerland against the anonymous whistleblowers. The unfolding investigation highlights the WEF's leadership struggles and raises questions about its future direction as key decisions await later in the year.