The founder of Patagonia is giving away ownership of the outdoor clothing retailer and all future
profits to projects and organizations that are focused on fighting climate change.
Various media reports claim that privately held Patagonia is worth about $3 billion U.S.
In a letter published on the Patagonia website, company founder Yvon Chouinard wrote: “While
we’re doing our best to address the environmental crisis, it’s not enough. We needed to find a
way to put more money into fighting the crisis while keeping the company’s values intact.”
Patagonia’s stock will now be owned by a climate-focused trust and group of non-profit
organizations called the “Patagonia Purpose Trust” and the “Holdfast Collective,” the company
said in a written statement.
Going forward, every dollar that is not reinvested into Patagonia will be distributed as dividends
to protect the planet, said the company.
The trust will get all the voting stock, which is 2% of the total. The trust will be overseen by
members of the Chouinard family and a group of advisors.
The Holdfast Collective will own all the non-voting stock of Patagonia, which amounts to 98%.
Patagonia expects to generate and donate about $100 million U.S. annually depending on the
health of its business. The company sells new and used outdoor clothing, as well as gear for
outdoor activities such as camping, fishing and mountain climbing.
Ryan Gellert will continue as Patagonia’s chief executive, and the Chouinard family will remain
on Patagonia’s board of directors following the reorganization.
Patagonia updated its website to state: “Earth is now our only shareholder.”
