World Economic Forum trustees clash over leadership reforms

{"text":[[{"start":9.8,"text":"The World Economic Forum’s trustees are deadlocked over plans to slim down its sprawling board as they await a decision from European Central Bank president Christine Lagarde on whether she will apply to become the influential group’s next chair."}],[{"start":24.05,"text":"Members of the WEF’s 28-strong board of trustees, which includes Lagarde, BlackRock chief executive Larry Fink and Accenture boss Julie Sweet, clashed over the organisation’s future governance in a meeting at the end of June, according to three people familiar with the situation. "}],[{"start":40.25,"text":"A group including Fink, who co-chairs the WEF alongside Roche vice-chair André Hoffmann, laid out a proposal at the meeting to concentrate decision-making power in fewer hands. Critics have argued that its unusually large board has come at the expense of clarity, efficiency and accountability."}],[{"start":58.55,"text":"That smaller group would include Fink, Hoffmann and Sweet as well as Zhu Min, a former deputy managing director of the IMF, Siemens chair Jim Hagemann Snabe and Orit Gadiesh, chair emeritus of Bain & Company, according to the people. "}],[{"start":74,"text":"The Swiss Federal Supervisory Authority for Foundations has told the forum it supports it having a smaller governing board."}],[{"start":82.15,"text":"The debate over how to reshape the organisation has been fuelled by the WEF’s ousted founder Klaus Schwab, who has been lobbying behind the scenes to influence its future governance and leadership, the people said."}],[{"start":null,"text":"

"}],[{"start":94.4,"text":"People familiar with Schwab’s thinking said he believes a smaller board risks drifting away from the multi-stakeholder governance model he spent more than five decades building and is concerned about its direction under Fink and “Americanisation”."}],[{"start":108.95,"text":"The trustees are also considering plans to change longstanding bylaws, including provisions that currently allow Schwab to appoint a family member to the WEF board."}],[{"start":119.55,"text":"Schwab spoke with Hoffmann ahead of last month’s meeting and opposed the new governance proposals, said the people familiar with the matter. A letter from the founder confirming his disagreement with the plans was given to board members."}],[{"start":133,"text":"The WEF’s annual meeting in Davos in Switzerland attracts heads of state, central bankers, chief executives and investors. US President Donald Trump, Reform UK leader Nigel Farage and SpaceX founder Elon Musk were among those who attended in January."}],[{"start":149.9,"text":"But the forum has been rocked by controversy for years, including two investigations into Schwab’s conduct that led to his departure in April 2025, although he was later cleared of “material wrongdoing”. Its chief executive Børge Brende resigned earlier this year following an investigation by the forum into his links to sex offender Jeffrey Epstein."}],[{"start":170.85,"text":"Fink and Hoffmann were appointed interim co-chairs following Schwab’s departure last year but have remained in the roles for longer than some at the forum originally anticipated while the board addresses governance issues."}],[{"start":184.25,"text":"The governance uncertainty has compounded a turbulent period for the forum. After Brende resigned, Alois Zwinggi was appointed interim chief executive, leaving both the chairmanship and the chief executive’s office in transition."}],[{"start":198,"text":"The June meeting exposed a board split between the many members, some of whom are broadly supportive of Schwab’s vision for the future of the organisation while others are pushing to move it in a different direction. With neither side able to command a majority, decisions were postponed, the people said."}],[{"start":216.95,"text":"“He [Schwab] doesn’t want to come back, but he does want a say in who becomes the future chair to preserve his legacy. And he has a lot of board allies still,” one WEF trustee said. Another person familiar with Schwab’s thinking said the founder is “not interested” in returning."}],[{"start":null,"text":""}],[{"start":233.89999999999998,"text":"Lagarde has long been Schwab’s preferred successor. Before he was forced out in April 2025 over misconduct allegations, the pair discussed the ECB president leaving Frankfurt before the end of her term next year to take over as chair of the forum."}],[{"start":248.7,"text":"Some believe Schwab would receive an advisory role if Lagarde were to become the next chair. The FT reported in February that Lagarde was expected to leave the ECB before her eight-year term expires in October 2027, although the central bank said at the time that she had “not taken any decision” about the end of her mandate. Lagarde told Les Echos earlier this month that it was “possible” she could leave early if the economic turbulence stemming from the Iran war subsides."}],[{"start":277.34999999999997,"text":"“A number of people at the WEF think the ball is now in Lagarde’s court [in terms of leadership], with all of this chaos. We know she has been considering it,” said a second WEF executive. Lagarde declined to comment."}],[{"start":289.09999999999997,"text":"The debate over the size of the board also comes as the forum struggles to maintain its original ethos of global co-operation and dialogue in an increasingly polarised political landscape. It is viewed by some as an elitist gathering that takes little stock of the concerns of ordinary citizens."}],[{"start":306.4,"text":"The WEF said: “As we look ahead, we remain focused on ensuring the Forum continues to provide a unique platform for global collaboration — one that is needed now more than ever in today’s increasingly complex and interconnected world.”"}],[{"start":321.7,"text":"Schwab declined to comment."}],[{"start":323.9,"text":"Additional reporting by Olaf Storbeck in Frankfurt"}],[{"start":336.09999999999997,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1783750123_4794.mp3"}