World Economic Forum founder and chairman Klaus Schwab on Monday officially stepped down as chairman, which comes more than five decades after he created the non-governmental organization (NGO).

The announcement comes after Schwab announced his plans to step down as executive chairman in May of last year. He remained as the non-executive chairman for the past year, but reiterated his plan to completely leave the controversial NGO earlier this month.

His departure comes after the board investigated allegations of racism and gender-bias against women in the WEF's workplace, which was first reported last year by the Wall Street Journal. Schwab and the organization have denied the allegations.

“Following my recent announcement, and 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 German founder said in a statement. 

Schwab notified the board of his resignation during a board meeting on Sunday, which was accepted, the WEF confirmed.

"At a time when the world is undergoing rapid transformation, the need for inclusive dialogue to navigate complexity and shape the future has never been more critical," the organization said in a statement. "Building on its trusted role, the Forum will continue to bring together leaders from all sectors and regions to exchange insights and foster collaboration."

Former Nestle Chairman and CEO Peter Brabeck-Letmathe will serve as the interim chairman until a new successor is announced to take Schwab's place. 

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.