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.