In an effort to further his environmental activism, Yvon Chouinard, the founder of outdoor retailer Patagonia revealed that he has given away his firm.
Patagonia, which The New York Times estimates to be worth USD 3 billion, could have been sold or made public by Yvon Chouinard.
Instead, Yvon Chouinard, his wife, and their two kids consented to transfer all of Patagonia’s voting shares, or stock that gives the holder voting rights to the trust in charge.
A nonprofit organisation advocating for environmental protection and conservation has received all of Patagonia’s nonvoting shares. Additionally, Patagonia’s revenues will be given to the NGO.
In an open letter posted to Patagonia’s website, Yvon Chouinard wrote, “Earth is now our only shareholder.”
Yvon Chouinard said, “I never wanted to be a businessman. I started as a craftsman, making climbing gear for my friends and myself, then got into apparel.”
“As we began to witness the extent of global warming and ecological destruction, and our own contribution to it, Patagonia committed to using our company to change the way business was done,” Yvon Chouinard added.
Patagonia, which was established some 50 years ago, rapidly showed its dedication to protecting the environment by selecting its raw materials with care and giving one percent of its annual sales to environmental NGOs.
But according to Yvon Chouinard, this is no longer sufficient. Selling Patagonia and donating the proceeds was one option.
“But we couldn’t be sure a new owner would maintain our values or keep our team of people around the world employed,” Yvon Chouinard said in the letter.
Taking Patagonia public would have been a “disaster”.
Yvon Chouinard said, “Even public companies with good intentions are under too much pressure to create short-term gain at the expense of long-term vitality and~CHECK~responsibility.”
Patagonia will continue to be a business that values its ability to make money and run with a CEO and board of directors.
The Chouinard family will no longer receive remuneration from the business but will continue to serve on the board, manage the trust, and direct the nonprofit’s charitable work.