WEF Said Eat Bugs… While Klaus Schwab Billed The Forum For Massages And Moët: Leaked Investigation

Klaus Schwab, the founder of the World Economic Forum and its public face for more than half a century, is at the center of a widening internal investigation into alleged workplace misconduct, inappropriate spending, and personal interventions in the Forum’s research and operations, according to documents reviewed by The Wall Street Journal and individuals familiar with the probe.

The Forum’s board of trustees commissioned the investigation in April following a whistleblower complaint. Preliminary findings accuse Schwab of a pattern of inappropriate behavior, including suggestive and potentially inappropriate remarks to female staff, questionable travel expenses exceeding $1.1 million for himself and his wife Hilde Schwab, and alleged manipulation of the Forum’s influential Global Competitiveness Report.

In one instance cited by investigators, Schwab wrote to a senior female executive in a late-night email in June 2020, “Do you feel that I am thinking of you.”

Investigators told trustees that Schwab treated the Forum like his “fiefdom,” fostering a culture of intimidation and fear while allowing harassment and discrimination to go unchecked. They also flagged 14 hotel massages billed to the Forum – either through Schwab’s corporate card or junior employees’ cards – noting he later reimbursed roughly half. Schwab said he had instructed assistants to bill him for such expenses.

Schwab, now 87, stepped down from the Forum over Easter weekend and no longer holds any official role. In a written statement, he defended his and his wife’s decades-long involvement: “Throughout this journey, Hilde and I never used the Forum for personal enrichment.”

Through a spokesman, Schwab also rejected the report’s broader conclusions, citing his fixed annual salary of 1 million Swiss francs (approximately $1.3 million), a 100,000 franc allowance for entertaining guests, and a commitment to reimbursing any personal costs mistakenly covered by the Forum.

He added that any travel expenses covered for his wife were based on a “good-faith understanding” between the Forum and the Schwab Foundation, which she chaired without a salary since 1973. Schwab also said he donated most gifts to charity and displayed others, such as Russian tea sets, at Forum headquarters. “He didn’t specifically recall other gifts described by investigators,” the spokesman added.

The internal inquiry, led by Swiss law firm Homburger, has involved interviews with over 50 current and former employees. The firm is expected to deliver a final report to the full board by the end of August, which will be shared with Swiss nonprofit regulators and may be referred to prosecutors.

Investigators have also found evidence of favoritism and discrimination. They cited instances in which Schwab allegedly sidelined women who were pregnant or over 40, negatively impacting their careers and mental health. Schwab, through his spokesman, responded that he 'always treated women respectfully’ and that messages like the 2020 email did 'not reflect his character.’ He described himself as a father figure to many young employees.

The Schwabs deny directing a refurbishment project or use of Villa Mundi near Lake Geneva in Switzerland. Photo: salvatore di nolfi/Shutterstock

Among the financial concerns, Forum funds were reportedly used to cover personal trips, including $63,000 in travel to Venice, Miami, the Seychelles, and Morocco. Investigators also scrutinized spending on “Villa Mundi,” a Forum-owned property near Lake Geneva, which they say was refurbished by a firm previously hired by the Schwabs for private projects. Hilde Schwab, they found, had significant control over the property’s use, allegedly reserving it largely for private purposes — a claim the Schwabs deny.

Additional expenses under review include the Schwabs’ use of a Forum-funded driver during vacations, their residential phone line, and a mobile phone used by their maid in Geneva. Schwab defended these as legitimate work-related costs due to the volume of Forum entertaining conducted at their home.

The investigation has reignited long-simmering tensions within the Forum’s leadership. Trustees launched the latest probe shortly after a prior inquiry, led by former U.S. Attorney General Eric Holder, concluded without substantiating allegations against Schwab. That probe resulted in internal reorganizations and executive departures, but left Schwab largely untouched.

After learning of the new probe, Schwab reportedly threatened to initiate counter-investigations into both the trustees and the whistleblowers, arguing he had already endured months of scrutiny.

Some of the most serious allegations involve Schwab’s alleged efforts to interfere with the Forum’s Global Competitiveness Report. According to investigators, Schwab approved the methodology but pressured staff to improve India’s ranking – citing his close relationship with the country’s prime minister – and reduce the U.K.’s position to avoid bolstering post-Brexit narratives. Through his spokesman, Schwab said he only intervened when necessary to protect the integrity of high-profile reports.

The Forum declined to comment.

While the findings remain preliminary, the probe represents a significant challenge to the reputation of both Schwab and the institution he founded in 1971. Known globally for its annual Davos gathering of business and political elites, the Forum has long championed transparency, governance, and stakeholder responsibility – ideals now under the microscope.

In his statement, Schwab acknowledged the end of his formal association with the Forum, saying, “Even if I am no longer part of it, I deeply hope the Forum will remain a trusted bridge-builder in a divided world.”