The World Economic Forum (WEF), long known as the annual gathering point for the world’s economic and political elite in Davos, Switzerland, has entered a new chapter after a period of internal turmoil and public scrutiny. On August 15, 2025, the WEF announced the appointment of two interim co-chairmen: Larry Fink, chief executive of the investment behemoth BlackRock, and André Hoffmann, Swiss billionaire environmentalist and vice-chairman of pharmaceutical giant Roche Holding. The move, intended to restore confidence and steer the Forum into calmer waters, follows a year marked by whistleblower complaints, leadership resignations, and a contentious investigation into the Forum’s founder, Klaus Schwab.
Larry Fink’s elevation to this post is no small matter. As the head of BlackRock, Fink oversees more than $10 trillion in assets and holds stakes in over 14,000 companies worldwide, making him arguably one of the most influential figures in global finance. According to reporting from The Wall Street Journal and other outlets, Fink’s financial clout is seen by some as eclipsing even that of Schwab, the WEF’s 87-year-old founder. Hoffmann, for his part, brings the weight of Big Pharma and a legacy of philanthropy, being the great-grandson of Fritz Hoffmann-La Roche, founder of Roche Holding.
This new leadership duo arrives at a critical juncture. The Forum has faced mounting criticism from across the political spectrum for years, with detractors labeling it an elitist, anti-democratic “talking shop” disconnected from the concerns of ordinary people. Environmental groups like Friends of the Earth have accused BlackRock of contributing to environmental and human rights abuses globally, calling the company a "first-class hypocrite" for its public stance on sustainability. Yet, BlackRock’s reach and influence remain undiminished; even political parties such as Labour in the UK have sought to court Fink, inviting him as a star guest at major investment conferences.
The immediate catalyst for this leadership shakeup was an internal investigation into Klaus Schwab, launched in April 2025 after an anonymous whistleblower letter alleged misconduct and raised red flags about the WEF’s governance and workplace culture. The letter, first reported by The Wall Street Journal, claimed that the Schwab family blurred the lines between their personal affairs and Forum resources, and that oversight was lacking. In response, the Forum hired Swiss law firm Homburger to conduct a thorough probe, which included looking into allegations of workplace misconduct and questionable handling of travel and other expenses exceeding $1 million.
After months of investigation, the WEF’s board announced on August 15 that it had found “no evidence of material wrongdoing” by Schwab or his wife, Hilde Schwab. The board did acknowledge “minor irregularities, stemming from blurred lines between personal contributions and Forum operations,” but asserted these reflected Schwab’s “deep commitment rather than intent of misconduct.” The Forum also expressed regret for any employees who felt mistreated, stating that it had strengthened its governance and would take steps to address management issues identified by the board.
Not everyone was satisfied with the board’s conclusions. Peter Brabeck-Letmathe, the interim chairman of the board and former CEO of Nestlé, resigned earlier in the week, citing a “toxic work environment.” In his August 12 resignation letter, Brabeck-Letmathe wrote that after witnessing the environment for several months, the only way forward was for the board to seek an “amicable agreement” with Schwab to resolve the dispute. Speaking to The Wall Street Journal, he explained, “I have a set of values, and I have a sense of integrity. I don’t feel I am the person who can lead the board of trustees in the next stage. There are different priorities and different feelings about what should be done or what should not be done.”
The workplace culture at the Forum has been under the microscope since a 2024 Wall Street Journal investigation described a toxic environment for women and Black employees. Schwab and the Forum disputed those allegations, but the whistleblower complaint that followed nearly a year later reignited concerns. The board hired not only Homburger but also Covington & Burling to ensure an independent and comprehensive review. After the first probe, the Forum stated that the allegations against Schwab weren’t substantiated, but committed to addressing the broader management issues that had surfaced.
The fallout from the investigation has been significant. In addition to Brabeck-Letmathe’s resignation, the Forum revamped its leadership structure earlier in 2025, with several senior executives departing. Schwab, who no longer holds any role at the Forum, has decided to drop his lawsuit against the organization and a separate legal action against anonymous whistleblowers. The board’s decision to appoint Fink and Hoffmann as interim co-chairs is widely seen as an attempt to draw a line under the dispute and move forward.
In a joint statement, Fink and Hoffmann expressed optimism about the Forum’s future, saying they looked forward to “reinventing and strengthening the Forum” and were confident it would continue to be “a platform for public-private cooperation.” Their appointment, however, has not allayed all concerns. Critics warn that the pairing of a global asset manager’s chief and a pharmaceutical heir further entrenches the Forum’s reputation as a bastion of corporate power, potentially deepening the disconnect between the WEF and the public it purports to serve.
On the other hand, supporters argue that Fink and Hoffmann’s experience and networks could help stabilize the Forum and restore its credibility at a time when trust in global institutions is at a low ebb. The board’s public commitment to strengthened governance and transparency is seen as a step in the right direction, though some observers remain skeptical, pointing to the Forum’s history of insularity and resistance to outside scrutiny.
As the dust settles, the WEF finds itself at a crossroads. The leadership transition, coupled with promises of reform, offers a chance for the Forum to rebuild its reputation and refocus its mission. Whether it can do so while balancing the interests of its powerful stakeholders and responding to the demands of a skeptical public remains to be seen. For now, the world will be watching to see whether the new co-chairs can truly deliver on their pledge to “reinvent and strengthen” the World Economic Forum.
