Klaus Schwab, the founder and long-serving executive chairman of the World Economic Forum (WEF), officially stepped down from his position on April 21, 2025. He led the WEF for over five decades, transforming it from a modest gathering of European business leaders into a globally influential platform for public-private collaboration. Schwab’s resignation closed an era marked by bold ideas, controversial initiatives, and historic dialogue.
At 87, Schwab decided to hand over the reins to allow a new generation of leadership to steer the forum through the complex challenges of the mid-21st century. The WEF Board accepted his resignation and immediately appointed Peter Brabeck-Letmathe, the forum’s Vice Chairman and former Nestlé CEO, as interim chair.
A Legacy of Global Dialogue
Klaus Schwab launched the WEF—originally named the European Management Forum—in 1971. He brought together top executives from European corporations to discuss business strategy and economic cooperation. Over time, he broadened the agenda to include geopolitical stability, sustainable development, and the role of technology in society. By the mid-1980s, the forum attracted world leaders, including heads of state, CEOs, and civil society activists.
Schwab created the concept of “stakeholder capitalism” and championed it as a guiding principle for corporations. He believed companies should serve all stakeholders—employees, customers, suppliers, communities, and shareholders—not just focus on short-term profits. His ideas gained global traction and influenced corporate governance debates across decades.
Schwab also launched key WEF initiatives that shaped policy conversations, including the Fourth Industrial Revolution, the Global Risks Report, and the Young Global Leaders program. Each of these initiatives sparked action among governments, academia, and the private sector.
Schwab’s Final Address: A Call for Unity
In his final official address on April 20, Schwab delivered an impassioned call for unity, innovation, and resilience. Speaking from Geneva, he thanked the thousands of leaders who participated in WEF meetings and supported the organization’s mission to “improve the state of the world.”
“We live in an age of fractures—economic, environmental, digital, and geopolitical,” Schwab said. “Only by collaborating across boundaries, sectors, and ideologies can we overcome the shared challenges of our time.”
He also urged future WEF leaders to stay rooted in principle. “Dialogue without purpose risks becoming noise. Leadership must remain values-driven, evidence-based, and globally inclusive.”
His words earned standing ovations from the WEF’s top advisory council and delegates tuning in from around the world.
Peter Brabeck-Letmathe Assumes Interim Leadership
Peter Brabeck-Letmathe stepped in immediately as interim chair. The WEF Board tasked him with guiding the transition process and selecting Schwab’s permanent successor by early 2026. Brabeck-Letmathe has served on the WEF Board for over two decades and built a reputation as a steady and pragmatic leader.
In his first remarks, Brabeck-Letmathe praised Schwab’s vision and discipline. “Klaus built an institution that transcended corporate boundaries and national borders. His impact on global leadership remains unmatched.”
He also pledged to keep the WEF’s agenda forward-looking. “We will focus on youth, technology, climate action, and rebuilding trust in global institutions,” he stated.
Shifting Role of the WEF in Global Affairs
Schwab stepped down at a pivotal moment for the World Economic Forum. In recent years, the WEF faced criticism for drifting too close to elite circles and failing to address growing distrust in globalization. Activists and independent economists accused the forum of promoting economic systems that increased inequality and environmental harm.
In response, Schwab attempted to refocus the forum’s goals. He emphasized inclusive growth, green transformation, and equitable digital access. He also expanded the forum’s partnerships with NGOs and startups. Despite those efforts, critics questioned whether the WEF remained accessible to voices outside the business and political elite.
Moving forward, Brabeck-Letmathe and his future successor must redefine the WEF’s relevance in an increasingly fragmented global order. Many challenges await them—artificial intelligence, climate instability, geopolitical tension, and systemic inequality. They must restore confidence in multilateralism and ensure the WEF remains a true convener of diverse thought.
Reactions Pour In from Global Leaders
News of Schwab’s resignation triggered an outpouring of respect and reflection from international leaders.
UN Secretary-General António Guterres described Schwab as “a tireless builder of bridges between power and purpose.” Guterres praised Schwab’s focus on the environment and his consistent calls for peace and stability.
Christine Lagarde, President of the European Central Bank, posted a tribute on X (formerly Twitter), stating, “Klaus shaped how the world thinks about leadership. He turned dialogue into action, and action into progress.”
Ursula von der Leyen, President of the European Commission, said Schwab’s vision helped create the conditions for cross-border cooperation in the face of global challenges.
Leaders from business also acknowledged his influence. Microsoft Chairman Satya Nadella said, “The WEF gave business a seat at the table when solving global problems. Klaus understood that collaboration drives innovation.” Tesla and X CEO Elon Musk, often critical of the WEF, still acknowledged Schwab’s influence: “He built something powerful. You don’t have to agree with it to respect the scope of what he created.”
Succession Speculation Begins
As Brabeck-Letmathe takes charge temporarily, speculation swirls around who might take over permanently. Insiders point to several names:
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Børge Brende, current President of the WEF, holds deep experience in diplomacy and global policy.
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Kristalina Georgieva, Managing Director of the IMF, has earned praise for her leadership during economic crises.
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Jacinda Ardern, former Prime Minister of New Zealand, remains widely respected for her progressive leadership style.
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Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, commands international credibility and business acumen.
The WEF will likely conduct a formal search process through 2025. Whoever takes the helm must bring credibility, agility, and the ability to navigate a world in transition.
What Comes Next for Schwab?
Though Schwab stepped down from his executive role, he will remain involved as a non-voting honorary chairman. He plans to focus on his foundation, write about stakeholder capitalism, and mentor emerging leaders.
He also intends to complete his memoirs, which will chronicle his years at the helm of the WEF and the evolution of global leadership. Schwab has hinted at launching a new initiative focused on intergenerational dialogue and digital ethics.
In his final statement, Schwab emphasized his enduring hope. “The world may seem divided,” he said, “but I believe deeply in the power of shared values, open minds, and human ingenuity.”
Conclusion
Klaus Schwab’s departure from the World Economic Forum marks the end of a foundational chapter in the story of global cooperation. For more than half a century, Schwab shaped how leaders addressed the world’s most pressing problems. He championed inclusion, innovation, and a broader definition of capitalism.
Now, the WEF must evolve without him at the helm. As new leaders step forward, they must maintain Schwab’s spirit of dialogue while reimagining how the forum can truly meet the needs of a world in flux. The next chapter begins with a legacy in place—but also with many questions still to answer.
