The World Economic Forum (WEF) has started searching for a new chairman after founder Klaus Schwab stepped down as head of its board of trustees at a meeting on April 20.
The board unanimously appointed vice chairman Peter Brabeck-Letmathe as interim chairman, in accordance with its rules and regulations, and a search committee has been appointed to select a new chairman, a WEF statement said on Monday.
“As I enter my 88th year, I have decided to step down from the position of chair and as a member of the Board of Trustees, with immediate effect," Mr Schwab said.
He was the executive chairman of WEF for more than half a century. He started what became the World Economic Forum, initially called the European Management Forum, in 1971, as a symposium on corporate management.
Since then, the organisation grew to become a leading convener of global leaders. Its annual meeting in the Swiss town of Davos has become a staple in the calendar of global executives. An annual gathering of about 2,500 corporate executives, financiers, politicians and public figures from more than 100 countries, it tackles matters such as inequality, migration, digital innovation and globalisation.
"Davos man" became a term to refer to the elite of the globalised world, often used to criticise capitalism and its top beneficiaries. And yet the annual meeting often sought solutions for global problems, including tackling pandemics and regulating technology.
Mr Schwab chose the Swiss resort town to make guests feel relaxed and speak freely, according to the Geneva-based non-profit organisation’s website.
Expressing gratitude for Mr Schwab's 55 years of leadership at the Forum, the board of trustees issued a statement saying he created the "leading global platform for dialogue and progress".
"At a time when the world is undergoing rapid transformation, the need for inclusive dialogue to navigate complexity and shape the future has never been more critical," the WEF said.
The move comes during a time of heightened uncertainty caused by US President Donald Trump's tariff regime that has roiled markets, dented oil prices and sent gold prices soaring. The tariff announcement this month has stoked fears of a US-China trade war and a global economic recession.
Global trade is at a critical crossroads amid the US tariffs regime, with the World Trade Organisation slashing its forecast for 2025. It now expects trade in goods to fall by 0.2 per cent this year, down from its expectation in October of 3 per cent expansion.
With strong ties with leading organisations such as the UN and World Bank, the WEF has played a major role in navigating political issues and promoting a collaborative approach to global trade.
"The board of trustees of the World Economic Forum underlines the importance of remaining steadfast in its mission and values as a facilitator of progress," the WEF said. "Building on its trusted role, the Forum will continue to bring together leaders from all sectors and regions to exchange insights and foster collaboration."
Mr Schwab was born in Germany to parents of Swiss origin. While the organisation he founded has frequently faced the charge of elitism, he has consistently stressed the need for the kind of global co-operation it offered.
As Mr Schwab got older, speculation increased about when he would retire and who would take his place. He continued to have a strong presence in the WEF and its annual meeting, but increasingly handed over responsibilities to president and chief executive Borge Brende, Norway's former foreign minister.
Both Mr Schwab's children, Nicole and Olivier, also worked at the WEF but have taken steps to leave the organization.
Nicole Schwab left her position of executive chairman in December. Her brother Oliver, a managing director, has previously said he has plans to leave and create his own startup.
This story has been updated to reflect an edit with details about Mr Schwab’s children
