Original Davos Man unveils half a succession plan

Mountain retreat. The original “Davos Man” is handing over some of his power. Klaus Schwab, the founder of the World Economic Forum, will next year give up executive duties at the group which hosts the annual conflab in the Swiss mountain resort. Though he will remain its public face for now, the shift should make it slightly easier for the WEF to eventually nominate a successor.
The 86-year-old Schwab is synonymous with the organisation he set up in 1971. By assiduously schmoozing world leaders, chief executives and financiers, he has inked its gathering every January into the calendars of the global elite. He also displayed an aptitude for navigating economic and geopolitical shifts. After the financial crisis of 2008, for example, Schwab courted leaders in emerging markets. And when Donald Trump won the 2016 U.S. presidential election with a campaign that was the antithesis of the WEF’s ideals, Schwab persuaded the former reality TV star to present his “America First” agenda to the Davos crowd. The organisation has bounced back from a global pandemic which forced it to cancel one gathering and postpone a second: revenue for the year to June 2023 exceeded 400 million Swiss francs.

The latest rejig does not answer the question of who will take Schwab’s role at the head of the organisation that now describes itself, with characteristic self-importance, as “the leading global institution for public-private cooperation”. He will be chairman of the WEF’s board of trustees, whose members include European Central Bank boss Christine Lagarde and BlackRock Chairman Larry Fink. Executive responsibilities will rest with a team led by Borge Brende, the low-key Norwegian who was formerly the Nordic country’s foreign minister and has been the WEF’s president since 2017. The leadership team also includes both of Schwab’s children.

Even so, the switch could smooth the process of eventually identifying Schwab’s replacement. Davos delegates have been speculating about potential successors for decades. Yet it’s easier to imagine a figure like Lagarde or, say, former British Prime Minister Tony Blair, stepping into a non-executive role. Even then, filling Schwab’s shoes would be a challenge. It’s also far from clear how many powerful figures would want to lead an organisation that features prominently in conspiracy theories. Nevertheless, Schwab has improved the chances that the moniker “Davos Man” will outlive him.