Founder Klaus Schwab to step down as World Economic Forum's chair

(Reuters) -The World Economic Forum founder Klaus Schwab, will "start the process" of stepping down as chair of its board of trustees, a spokesperson for the Geneva-based institution told Reuters on Thursday.

Schwab said the forum, which convenes annual gatherings in the Swiss resort of Davos, must recover its "sense of mission" after a period of turmoil, the Financial Times first reported, citing a letter to trustee board members and confirmation by two people with knowledge of the situation.

He did not give a timeline for his departure from the organisation, but the WEF said in a statement to the FT that the process should be completed by January 2027.

Schwab will remain in this role until a successor is appointed, the WEF spokesperson told Reuters, without providing a timeline.

Last year, Schwab said he would next year give up executive duties to a team led by Borge Brende after 55 years at the forum. Brende was a former foreign minister of Norway and has been the WEF's president since 2017.

"It is also financially very well equipped thanks to successful financial management since its beginning," Schwab said of the forum to the FT.

"What is essential now after the turmoil of the last months, is to recover our sense of mission," he said, without specifying if the upheaval he was referring to was in response to Donald Trump's second presidential term or an investigation of the WEF, the report added.

The Wall Street Journal last year reported the WEF's board was working with a law firm to investigate its workplace culture, after the newspaper reported allegations of a culture of harassment and discrimination at the organisation.

Last month, the WEF said external lawyers hired to perform an investigation into the claims did not find it had committed any legal violations and did not substantiate allegations of misconduct against Schwab, the FT reported.

(Reporting by Urvi Dugar and Rishabh Jaiswal; Editing by Bill Berkrot and Jamie Freed)