BlackRock’s Fink appointed as interim co-chairman of World Economic Forum

Board of WEF clears founder Schwab of 'material wrongdoing' after investigation

Larry Fink, chairman and chief executive of BlackRock, becomes WEF interim co-chairman at a time of turbulence in the global economy. Bloomberg

BlackRock chief executive Larry Fink has been appointed interim co-chairman of the World Economic Forum (WEF), which organises the annual meeting of leaders in Davos, Switzerland.

Andre Hoffmann, the vice chairman of Swiss based healthcare company Roche Holding, will also be interim co-chairman of the WEF, according to an announcement on Friday.

“The world is more fragmented and complex than ever, but the need for a platform that brings together business, government, and civil society has never been greater,” Mr Fink and Mr Hoffmann said in a joint statement.

“We remain optimistic. The forum has an opportunity to help drive international collaboration in a way that not only generates prosperity but distributes it more broadly.”

"This renewed vision can promote open markets and national priorities side by side, while advancing the interests of workers and stakeholders globally," they said.

Both Mr Fink and Mr Hoffmann have been serving on the WEF’s board before being appointed to the current position.

The latest announcement comes as global economy feels the impact of geopolitical matters and the rise in protectionism fostered by the introduction of US tariffs.

US President Donald Trump shook the world economy following his April 2 "liberation day" announcement, with new tariffs.

A number of leaders from the world of business and politics attend the forum every year. Mr Trump addressed the forum online this year.

Donald Trump calls on Saudi Arabia and Opec to cut oil prices

00:24

The board of trustees of the WEF cleared founder Klaus Schwab of any “material wrongdoing” following an investigation into allegations raised by anonymous whistleblowers.

“Following a thorough review of all facts, the board has concluded that, while the organisation must evolve toward a more institutional model, there is no evidence of material wrongdoing by Klaus Schwab,” the WEF said in the statement.

The WEF logo on show at the Davos Congress Centre in Switzerland. EPA

It also cleared Hilde Schwab, wife of Mr Schwab, of any misconduct.

“Minor irregularities, stemming from blurred lines between personal contributions and forum operations, reflect deep commitment rather than intent of misconduct,” the WEF said.

“The board has taken action to address all issues identified throughout the investigation, including strengthening the governance in general.”

Mr Schwab started what became the World Economic Forum – initially called the European Management Forum – in 1971 as a symposium on corporate management.

Since then, the event grew to become an annual gathering of about 2,500 corporate executives, financiers, and politicians, and other public figures from more than 100 countries, addressing matters such as inequality, migration, digital innovation and globalisation.

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.

Mr Schwab stepped down as head of board of trustees of the WEF in April this year.