The World Economic Forum (WEF), best known for hosting its annual gathering in Davos, is reportedly considering ways to shrink its sprawling board of members, a move that could consolidate power at the top of the organization.
According to a Financial Times report, proposals to reduce the size of the WEF’s 28-member board are already under consideration and are expected to be formally discussed in the coming months.
Citing people familiar with the matter, the publication also said a decision could be around the corner and could come as soon as the administrators’ semi-annual face-to-face meeting is held in the summer.
What we know about the move to reduce the number of WEF board members
While the WEF is likely to formally discuss the ideas soon, the proposal is not new – the FT reported that the idea of changing the composition of the board has been circulating within the organization for some time and gained momentum following the appointment of Blackrock boss Larry Fink and Roche vice-chairman Andre Hoffman last month.
The announced move comes as the WEF itself is undergoing upheaval, with founder Klaus Schwab stepping down as chairman last year amid allegations of financial misconduct and workplace toxicity and CEO Borge Brende stepping down last month over links to convicted child sex offender and disgraced financier Jeffrey Epstein.
“We need to do some cleaning before we go into the competition for future leadership as both chairman and chief executive. We need to understand the benefits of such a large board. I’m not sure there is one,” a board member said, according to the FT.
The current WEF board is broad, a product of Schwab’s vision, large and diverse, and drawn from fields ranging from business and politics to science and the arts, with appointments including the Queen of Jordan, the President of Singapore, cellist Yo-Yo Ma and Salesforce co-founder Marc Benioff.
However, the FT reported that critics inside and outside the WEF questioned the need and effectiveness of such an arrangement.
“The board and its composition are not new. But if you look at who has been a member and for how long, it is clear that some should resign,” the FT quoted a person close to the board as saying.
Talk of trimming the board also comes under pressure from Swiss regulators, with the publication reporting that Switzerland’s federal foundation watchdog has indicated that it would be appropriate to slim down the board.
Details on how the board might be cut are scarce at this point.
However, one option being considered involves keeping the current board in place and creating a new governing body made up of current and new members. However, people familiar with the matter told the FT that a reduction in membership was more likely than the establishment of a new body.
