World Economic Forum Courts Lagarde as Next Leader

Klaus Schwab's abrupt departure from the World Economic Forum (WEF), the influential organisation he founded and led for more than half a century, has complicated carefully laid plans to persuade Christine Lagarde (pictured) to assume the helm in a seamless transition, according to people familiar with the discussions.

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Schwab, 87, had initially intended to stay on until early 2027, the same year Lagarde's term as European Central Bank president comes to an end, but he left last month amid accusations of financial misconduct and a clash with the Forum's directors. He denies any wrongdoing.

As the board deals with the fallout, it still sees Lagarde as the top candidate and has held internal discussions on the matter since Schwab's resignation last month, according to a person familiar with those conversations, who asked not to be identified.

The conundrum is that Lagarde has more than two years left at the ECB and has previously said she will serve her term in full.