Klaus Schwab has denied all allegations, which he describes as unfounded. He has also threatened to sue WEF's board, according to the newspaper.
WEF's board received the whistleblower's allegations in a letter last week, in which the 87-year-old Klaus Schwab and his family are alleged to have mixed their private business with WEF's finances, according to the newspaper's sources. This is said to include the use of luxury villas, cash, and travel arrangements financed by WEF.
The whistleblower has also sounded the alarm about how Klaus Schwab, and WEF under his leadership, have treated female employees.
The board decided at an extraordinary crisis meeting on Sunday – after consulting with an external lawyer – to initiate an investigation. Klaus Schwab, the board's chairman, resigned immediately after more than 50 years in the post.
According to WEF's board, where the vice chairman – Austrian Peter Brabeck-Letmathe – has temporarily taken over the chairmanship, the allegations are serious but so far not proven.
The plan was, ahead of Sunday's crisis meeting, for Klaus Schwab to remain in place until January 2027, during the recruitment of a new chairman.
