The World Economic Forum exonerates Schwab founder: "No wrongdoing."

ROME – The World Economic Forum has announced the conclusion of its internal investigation into alleged wrongdoing by founder Klaus Schwab and his wife, Hilde . The Davos-based group is thus attempting to turn the page and remove shadows from the Forum. The interim president also resigns, denouncing a "toxic environment," and BlackRock boss Larry Fink and Swiss billionaire André Hoffmann have been appointed in his place.

The WEF exonerates Klaus Schwab

In a statement, the Forum stated that its board of directors intends to end the dispute with its founder that has troubled the organization. The board stated that it has concluded that "there is no evidence of material wrongdoing" by Schwab or his wife, Hilde. "Minor irregularities, resulting from blurred boundaries between personal contributions and forum activities, reflect a deep commitment rather than intent to commit misconduct." The forum stated that it has strengthened its governance and expressed regret to all employees who felt mistreated.

The Davos scandal

Last year, the Wall Street Journal published an investigation with dozens of complaints from staff . The allegations included abuse and insults against female employees , including those fired for revealing their pregnancy, employees fired without just cause, and workers insulted because of their skin color. His wife, Hilde Schwab, was accused of organizing sham meetings funded by the Forum to justify luxury trips paid for by the organization. In April of this year, after having already resigned as president of the WEF, Schwab also left the board of trustees.

Schwab's latest resignation and succession

The organization also announced changes to its board of directors following the investigation. The interim chairman of the board, Peter Brabeck-Letmathe , former CEO of Nestlé, resigned following a board meeting held earlier this week to discuss the investigation's findings.

In his resignation letter—seen by the Wall Street Journal —Brabeck expressed concerns about a "toxic" work environment , the likes of which had not previously been known. The WEF subsequently appointed two new interim co-chairs to lead the board: BlackRock chief Larry Fink and Swiss billionaire André Hoffmann .