The World Economic Forum (WEF), best known for hosting the annual Davos gathering, is reportedly considering ways to trim its sprawling board of members, a move that could consolidate power at the top of the organization.
According to a report by Financial Times, proposals to reduce the size of the 28-member WEF board are already under consideration and are expected to be debated formally in the coming months.
The publication, citing people familiar with the matter, also reported that a decision could be around the corner, and could come as soon as the trustees’ biannual in-person meeting held in summer.
What we know about the move to trim WEF board members
While the WEF is likely to formally debate these ideas soon, the proposal isn’t new — FT reported that the idea of a change in composition of the board of trustees has been circulating inside the organization for some time, and gained steam following the appointments of Blackrock chief Larry Fink and Roche vice-chair Andre Hoffman last month.
The reported move comes at a time when the WEF itself is going through an upheaval, with founder Klaus Schwab stepping down as chair last year amid allegations of financial misconduct and workplace toxicity, and chief executive Borge Brende resigning last month over links to convicted child sex offender and disgraced financier Jeffrey Epstein.
“Before we move into a contest on future leadership for both the chair and chief executive roles, we need to do some housekeeping. We need to understand the benefit of such a large board of trustees. I am not sure there is one,” a board member was quoted as saying by FT.
WEF’s current board is broad, the result of Schwab’s vision, is large and diverse and is constituted by figures from arenas ranging from business and politics to science and art, with appointments including the queen of Jordan, Singapore’s president, cellist Yo-Yo Ma, and Salesforce co-founder Marc Benioff among others.
However, FT reported that critics both inside and outside the WEF question the need for and efficacy of such a set up.
“The board and its composition are not new. But if you look at who is a member, and for how long, it is clear some should step down,” a person close to the board was quoted as saying by FT.
The discussions about trimming the board also comes amid pressure from Swiss regulators, with the publication reporting that the Swiss Federal Supervisory Authority for Foundations has indicated that a leaner board would be advisable.
Details about how the board could be trimmed are scarce at the moment.
However, one option being considered involves leaving the existing board in place and creating a new governing body made up of current and new members. That said, people familiar with the matter told FT a reduction in members was more likely than the setting up of a new body.
