Klaus Schwab, Chairman of the World Economic Forum addresses attendees during the opening of the Annual Meeting of the World Economic Forum in Davos, Switzerland on January 16, 2024.
| Photo Credit: AP

Klaus Schwab, founder and executive chairman of the World Economic Forum (WEF), will step back from his current role and become chairman of the board of trustees by next January, the organization said on Tuesday.

The Geneva-based institution said in an emailed statement it was undergoing a planned “governance evolution” from a founder-managed organisation to one where the president and the managing board assume full executive responsibility.

The forum, which was established by Mr. Schwab in 1971, is known for its annual gathering of political and business leaders in Davos, Switzerland.

Mr. Schwab’s goal was to create a forum for policymakers and top corporate executives to address major global issues and learn practices for leadership and management.

However, the event, once regarded as a cheerleader for globalisation, is not without its detractors. In recent years, it has been criticized by activists and commentators as a talking shop for the jet set that adds to global carbon emissions.

Acknowledging the shift, the WEF’s theme for last year’s annual conference was “Cooperation in a Fragmented World,” and it called on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable world.

New Delhi:

Klaus Schwab, the founder and executive chairman of the World Economic Forum, will be stepping down from his executive role. He will be transitioning to a non-executive role by January 2025. “By January 2025, Klaus Schwab will transition from Executive Chairman to Chairman of the Board of Trustees,” the World Economic Forum (WEF) said in a statement.

“In addition, the Forum’s prominent Board of Trustees will be organised around four strategic committees to further reinforce the impact of our work,” it said.

The Forum’s governance is also set to change as a consequence of the move and Schwab hasn’t yet named a successor.

“Since 2015, the World Economic Forum has been transforming from a convening platform to the leading global institution for public-private cooperation. As part of that transformation, the organization has also been undergoing a planned governance evolution from a founder-managed organization to one where a President and Managing Board assume full executive responsibility,” the forum said.

The WEF, which the 86-year-old founded in 1971, organises a yearly gathering of world leaders in finance, economy and politics in Davos, Switzerland as well as several smaller events throughout the world.