WEF scopes out potential Schwab successors

Schwab thinks conferences may be very different in 20 to 30 years Keystone

Klaus Schwab, the 77-year-old chairman of the World Economic Forum (WEF), says a succession process for the top position at the Geneva-based organisation known for its high-level conferences in Davos, has begun.

In an interviewExternal link the founder of the organisation told the Financial Times that his joint governing role of chairman and managing director of the group will be split. The WEF, which launched its annual meetings in the south-eastern ski resort in 1971, is currently preparing to register in Switzerland as an international organisation, a move initiated by the federal government.

He said that there were “many very capable” members on the organisation’s board of trustees, including the International Monetary Fund (IMF) chair Christine Lagarde, as well as others on the WEF’s managing board, which included former ministers and CEOs.

“Certainly what will happen is that the organisation will depend less on one person and more on the team in the coming years,” said Schwab, emphasising that he was “not preoccupied with the succession at the moment”.

He added that medical staff commented he had the “fitness of a well-trained 50-year-old” and considered himself to be in “great health”.

Over the years, the WEF has grown from its initially small group of experts who brought together business leaders and government representatives to promote greater accountability, to an organisation running annual conferences on all continents and arranging intimate discussions in Geneva and elsewhere, between top leaders on key international issues.

Asked about the future of conferences, the German-born economist said, “In 20, 30 years people will not go to conferences any more. I just know that it will be different , and we will need to be on the forefront”.

Late last year, the WEF announced an increase in annual fees for its strategic partners, by 20% to CHF 600,000 ($639,918), a move that coincided with global economic slowdown and soon after Switzerland’s decision to end its support of the euro exchange rate, resulting in the franc’s appreciation against other currencies. Schwab commented that the organisation had not lost one member following the rate hike, affirming that a waiting list for membership even exists.

“We had to cap [the membership list] at 1,000.” Unlike other international conferences, he said, “when you go to Davos, you know that every government in the world is represented by at least one representative, and the same for the business community.”