Almost 50 years after Yvon Chouinard founded it, Patagonia has a new ownership structure. The Chouinard family has transferred all ownership to two new entities: the Patagonia Purpose Trust and the Holdfast Collective. Our sole shareholder is now the Planet so every dollar that is not reinvested in the company will be distributed as a dividend to protect the Planet. From the beginning, the famous Californian sportswear brand stood out for its attention and commitment to protecting the environment. This step represents a natural and logical evolution. Even if we are doing our best to tackle the environmental crisis – wrote Yvon Chouinard in the letter in which he talks about the change in Patagonia – not enough. We need to find a way to invest more in the fight against crises while keeping the company’s values intact. Thus was born this new structure.
The Patagonia Purpose Trust now owns all of the company’s voting stock (2% of total shares) and was established to create a permanent legal framework that protects the company’s purpose and values. This is aimed at ensuring that the company never changes direction with respect to the intentions of its founder. The Holdfast Collective owns all non-voting shares (98% of the total) and will use every dollar received by Patagonia to protect nature and biodiversity, support communities and fight the environmental crisis. The company is projected to pay an annual dividend of approximately $ 100 million. The leadership of the company remains unchanged.
A B Corp
The company remains a B Corp, Ryan Gellert continues to be the CEO of Patagonia. In addition, the Chouinard family will continue to sit on the board of directors, will also lead the company’s controlling shareholder, the Patagonia Purpose Trust, elect and oversee the Patagonia board of directors, and follow the philanthropic work done by the Holdfast Collective. For Charles Conn, chairman of the Patagonia board of directors: The world literally on fire. Companies that create a new model of capitalism through a deep commitment to environmental and social goals will not only attract more investments, better employees and greater customer loyalty. These companies are the future of business if we are to build a better world, and this future starts with what Yvon is doing now.