Klaus Schwab speaks during the first day of the SWITCH GREEN Green Technology Festival at Kraftwerk Mitte on September 16, 2020 in Berlin, Germany.
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The World Economic Forum confirmed on Tuesday that founder Klaus Schwab will no longer be in charge of day-to-day management of the organization after more than 50 years at the helm.
The forum said the move was part of a multi-year strategy to change its management structure and transfer governance to the president and board of directors. Børge Brende is the current Chairman of the World Economic Forum.
The forum did not reveal who will succeed Schwab and become the face of the elite annual meeting in Davos, Switzerland.
“Since 2015, the World Economic Forum has been transforming from a convening platform into the world’s leading public-private partnership institution,” the World Economic Forum said in a statement to CNBC.
It added: “As part of this transformation, the organization has also undergone a planned governance evolution, moving from a founder-managed organization to one where the president and management board have full executive responsibility.”
The nonprofit confirmed that Schwab will transition to chairman of the board of directors. It added that the board will be organized around four strategic committees “to further enhance the impact of our work”.
The World Economic Forum said the leadership changes would be completed before the next Davos meeting in January 2025.
Schwab’s plans were initially announced in an email to employees on Tuesday, according to a person familiar with the matter. Report From news outlet Semafor.
The 86-year-old’s successor has sparked much speculation in recent years, with potential successors including his children or Bründ. However, the organization has so far been tight-lipped about its intentions.
Schwab, a German engineer and economist, founded the forum in 1971 and serves as its executive chairman.
Known at the time as the European Management Forum, it was originally designed as a place for European business leaders and government officials to gather and discuss increasing competitiveness with the United States
Over the years, the annual Davos gathering has become a must-attend event for the world’s elite. It aims to bring world leaders and business leaders together to solve important issues. Key sessions at the event include the first ministerial talks between North and South Korea and the genesis of campaigns such as the global health initiative to fight AIDS, tuberculosis and malaria.
However, it has since been criticized for failing to represent diverse voices and make progress on global issues such as climate change and wealth inequality, with demonstrators holding annual protests at the summer resort.
The World Economic Forum said in a statement on Tuesday that the structural changes “underscore our institutional continuity in providing an independent and impartial platform to address the complex challenges of a connected world”.
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