The World Economic Forum (WEF) has started searching for a new chairman after founder Klaus Schwab stepped down as head of its board of trustees at a meeting on April 20.
The board unanimously appointed vice chairman Peter Brabeck-Letmathe as interim chairman, in accordance with its rules and regulations, and a search committee has been appointed to select a new chairman, a WEF statement said on Monday.
“As I enter my 88th year, I have decided to step down from the position of chair and as a member of the Board of Trustees, with immediate effect," Mr Schwab said.
He was the executive chairman of WEF for more than half a century. He started what became the World Economic Forum, initially called the European Management Forum, in 1971, as a symposium on corporate management.
Since then, the organisation grew to become a leading convener of global leaders. Its annual meeting in the Swiss town of Davos has become a staple in the calendar of global executives. An annual gathering of about 2,500 corporate executives, financiers, politicians and public figures from more than 100 countries, it tackles matters such as inequality, migration, digital innovation and globalisation.
"Davos man" became a term to refer to the elite of the globalised world, often used to criticise capitalism and its top beneficiaries. And yet the annual meeting often sought solutions for global problems, including tackling pandemics and regulating technology.
Mr Schwab chose the Swiss resort town to make guests feel relaxed and speak freely, according to the Geneva-based non-profit organisation’s website.
Expressing gratitude for Mr Schwab's 55 years of leadership at the Forum, the board of trustees issued a statement saying he created the "leading global platform for dialogue and progress".
"At a time when the world is undergoing rapid transformation, the need for inclusive dialogue to navigate complexity and shape the future has never been more critical," the WEF said.
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US President Donald Trump is shown on screen as he addresses a plenary session remotely in Davos, Switzerland. EPA -
Participants queue to enter the Congress Hall. EPA -
Iraqi President Abdul Latif Rashid. EPA -
Special police stationed on the roof of the Congress Hotel in Davos. EPA -
Former UK prime minister Tony Blair and Syrian Foreign Minister Asaad Al Shibani at the Annual Meeting of World Economic Forum in Davos. AP -
Javier Milei, Argentina's President, during an interview at Bloomberg House at the event. Bloomberg -
Spain's Prime Minister Pedro Sanchez on the podium. AFP -
Iran's Vice President for Strategic Affairs Mohammad Zarif addresses the audience. AFP -
German Chancellor Olaf Scholz, left, and Ukrainian President Volodymyr Zelenskyy. Getty Images -
Israel's President Isaac Herzog at the annual meeting in Davos. AP -
Saudi Arabia's Minister of Foreign Affairs Prince Faisal bin Farhan, during the 55th annual meeting of the World Economic Forum in Davos. Reuters -
The Prime Minister and Foreign Minister of Qatar, Sheikh Mohammed bin Abdulrahman, attends the Annual Meeting of the World Economic Forum in Davos. Reuters -
President of South Africa Cyril Ramaphosa speaks at a plenary session. EPA -
Khaldoon Al Mubarak, chief executive of Mubadala Investment Co, during a panel session in Davos. Bloomberg -
Former British prime minister Theresa May at the 55th annual World Economic Forum. EPA -
Brian Moynihan, chief executive officer of Bank of America Corp, at the forum. Bloomberg -
Ruth Porat, chief financial officer of Alphabet Inc, at Bloomberg House. Bloomberg -
Amir Yaron, governor of Israel's central bank, at the WEF in Davos. Bloomberg -
Ngozi Okonjo-Iweala, director general of the World Trade Organisation in Davos. Bloomberg -
From left, Rachel Morison, editor at Bloomberg News, Belgium's Prime Minister Alexander De Croo, Ester Baiget, chief executive of Novozymes, Marc Ferracci, France's Industry and Energy Minister, Martin Lundstedt, chief executive of Volvo, and Anna Borg, chief executive of Vattenfall AB, during a panel session at the World Economic Forum. Bloomberg -
Rafael Grossi, director general of International Atomic Energy Agency, speaks at the WEF. Bloomberg -
Mina Al-Oraibi, editor-in-chief of The National, left, Mohamed Kande, global chairman of PwC, second left, Ravi Kumar S, chief executive of Cognizant, second right, and Luc Triangle, general secretary of the International Trade Union Confederation, right, during the panel session titled, Who Benefits from Augmentation? Photo: WEF -
Filippo Grandi, UN High Commissioner for Refugees, speaks during the Refugees and Their Olympian Spirit session. Photo: WEF -
Bandar Bin Mohammed Al Thani, Governor of the Qatar Central Bank, during the session called Banks: Change on All Fronts? Photo: WEF -
Masomah Ali Zada, chef de mission of the Refugee Olympic Team, France, speaks during the Refugees and Their Olympian Spirit session. Photo: WEF -
Watching the inauguration of Donald Trump as US President on screens, at the Ukraine House, during the World Economic Forum in Davos. AP -
Waleed Al Muhairi, deputy group chief executive of Mubadala Investment Company, during a Bloomberg Television interview before the WEF. Bloomberg
The move comes during a time of heightened uncertainty caused by US President Donald Trump's tariff regime that has roiled markets, dented oil prices and sent gold prices soaring. The tariff announcement this month has stoked fears of a US-China trade war and a global economic recession.
Global trade is at a critical crossroads amid the US tariffs regime, with the World Trade Organisation slashing its forecast for 2025. It now expects trade in goods to fall by 0.2 per cent this year, down from its expectation in October of 3 per cent expansion.
With strong ties with leading organisations such as the UN and World Bank, the WEF has played a major role in navigating political issues and promoting a collaborative approach to global trade.
"The board of trustees of the World Economic Forum underlines the importance of remaining steadfast in its mission and values as a facilitator of progress," the WEF said. "Building on its trusted role, the Forum will continue to bring together leaders from all sectors and regions to exchange insights and foster collaboration."
Mr Schwab was born in Germany to parents of Swiss origin. While the organisation he founded has frequently faced the charge of elitism, he has consistently stressed the need for the kind of global co-operation it offered.
As Mr Schwab got older, speculation increased about when he would retire and who would take his place. He continued to have a strong presence in the WEF and its annual meeting, but increasingly handed over responsibilities to president and chief executive Borge Brende, Norway's former foreign minister.
Both Mr Schwab's children, Nicole and Olivier, also worked at the WEF but have taken steps to leave the organization.
Nicole Schwab left her position of executive chairman in December. Her brother Oliver, a managing director, has previously said he has plans to leave and create his own startup.
This story has been updated to reflect an edit with details about Mr Schwab’s children
