The World Economic Forum (WEF) is undergoing a historic leadership transition following the resignation of its founder and chairman, Klaus Schwab, on Monday, April 21. Schwab, who shaped the WEF into a global platform for dialogue over 55 years, stepped down at 87, citing his advancing age. The Board of Trustees, in an extraordinary meeting on April 20, unanimously appointed Vice Chairman Peter Brabeck-Letmathe as chairman ad interim while a search committee seeks a permanent successor. Brabeck-Letmathe, former CEO and chairman of Nestlé, brings decades of corporate experience but also a controversial past that’s already stirring debate.
Schwab’s departure marks the end of an era for the WEF, best known for its annual Davos summit, where global leaders tackle pressing issues. Founded in 1971 as the European Management Forum, the WEF grew under Schwab into a powerhouse employing over 800 people across Geneva, New York, Beijing, and Tokyo. In his resignation statement, Schwab said, “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.” The board praised his “outstanding achievements,” noting the Forum’s role in fostering collaboration amid rapid global change.
Brabeck-Letmathe, 80, steps into the interim role with a formidable resume. Born in Villach, Austria, he studied economics at the University of World Trade in Vienna and joined Nestlé in 1968 as a salesman. Rising through the ranks, he served as CEO from 1997 to 2008 and chairman until 2017, steering the Swiss food giant to global dominance. Beyond Nestlé, he chaired the Formula One Group and held board seats at Credit Suisse, L’Oréal, and ExxonMobil. A long-time WEF trustee and vice chairman, he also leads the WEF’s Water Initiative, advocating for solutions to water scarcity.
However, Brabeck-Letmathe’s appointment has reignited scrutiny over his views on water access, particularly comments from a 2005 documentary, We Feed the World. In it, he described the idea of water as a public right as “extreme,” suggesting water should have a market value like other foodstuffs. “It’s better to give a foodstuff a value so that we’re all aware it has its price,” he said, arguing for measures to ensure access for those unable to pay. Critics, citing Nestlé’s bottled water profits and aquifer use, accused him of prioritizing corporate interests over human needs.
Brabeck-Letmathe and Nestlé have since clarified his stance. In a 2013 blog post and interviews, he emphasized that water for drinking and hygiene—25 to 100 liters per person daily—is a human right governments must ensure. He argued that the remaining 98.5% of water, used for agriculture or non-essential purposes like golf courses, should be managed sustainably, not wasted. Nestlé’s website reinforces this, stating Brabeck-Letmathe “passionately believes” in universal access to clean water and sanitation, aligning with the UN’s 2010 resolution recognizing water as a human right. A 2017 EU Business School speech further affirmed this position, contradicting claims he denied water rights that year.
The controversy persists, fueled by Nestlé’s history of water-related criticism, including allegations of over-extracting local supplies. Brabeck-Letmathe’s 2005 remarks, though clarified, remain a flashpoint, especially as he assumes a high-profile role at the WEF, an organization already criticized as elitist. The board, which includes figures like World Bank President Ajay Banga and IMF chief Kristalina Georgieva, now faces the task of selecting a permanent chairman by January 2027, per earlier WEF statements. Former Norwegian foreign minister Borge Brende, the WEF’s president since 2017, will continue managing daily operations.
As the WEF navigates this transition, Brabeck-Letmathe’s leadership will be closely watched. His water advocacy, including founding the Water Resources Group to address scarcity, could shape the Forum’s agenda, but his corporate background may deepen skepticism among critics. The search for a new chairman begins amid a polarized global landscape, with the WEF’s mission of inclusive dialogue more vital—and challenging—than ever.