50 years after its founding, Patagonia founder Yvon Chouinard donated his company to two environmental foundations, the Patagonia Purpose Trust and the Holdfast Collective. Going forward, every dollar not reinvested in Patagonia will be paid out as a dividend to protect the planet.
The outdoor clothing company Patagonia announces new ownership. This restructuring happened around 50 years after the founder Yvon Chouinard the experiment of responsible entrepreneurship began.
With immediate effect, the Chouinard family has transferred all ownership rights to two new entities - the Patagonia Purpose Trust and Holdfast Collective. Most importantly, from now on, every dollar not reinvested in the company will be paid out as a dividend to protect the planet.
“It's been half a century since we started our experiment in responsible business. If we are to hope to have a livable planet in 50 years, we must do everything we can with the resources we have.»
Yvon Chouinard, Patagonia Founder
Pursue values-based intentions of founders
The Patagonia Purpose Trust now owns all of the company's voting shares, representing a XNUMX percent ownership interest in the company. The Patagonia Purpose Trust creates a permanent legal structure to enshrine Patagonia's purpose and values. He will help further the values-based intentions of the founder and ensure the company can continue to do what it is best at: as a for-profit company, demonstrate that capitalism can work for the planet.
«As a businessman I never wanted to be, I take responsibility. Rather than exploiting nature for profit, we use the wealth Patagonia creates to protect the source of all wealth: nature. We make the earth our sole shareholder. I am dead serious about saving this planet.»
Yvon Chouinard, Patagonia Founder
100 million for environmental protection
The Holdfast Collective owns all non-voting shares (98 percent of the company's total shares). It uses every dollar it raises to fight the environmental and climate crisis, protect nature and biodiversity, and support communities active in environmental protection.
Each year, Patagonia pays the earnings not reinvested back into the company as a dividend to the Holdfast Collective to help fight the environmental crisis. The company expects to pay out about $100 million annually, depending on the health of the company.
1 percent of sales to environmental organizations
Patagonia remains a B Corp company and will continue to donate XNUMX percent of sales to environmental organizations each year. Nothing will change in the management of the company. Ryan Gellert will continue as CEO and the Chouinard family will continue to serve on the Patagonia board of directors, along with Kris Tompkins, Dan Emmett, Dr. Ayana Elizabeth Johnson, Charles Conn, Chairman of the Board, and Ryan Gellert.
The Chouinard family will lead the company's controlling shareholder, the Patagonia Purpose Trust, elect and oversee Patagonia's board of directors, and direct the philanthropic work of the Holdfast Collective. Working together, the Patagonia Board of Directors and the Patagonia Purpose Trust will be committed to the long-term success of the company while ensuring it stays true to its purpose and values.
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Credits: Cover photo Campbell Brewer