Patagonia Founder Donates Company to Fight Climate Change
Image credit: Getty Images [via Daily Mail]
The Facts
- On Wed., Yvon Chouinard, the billionaire founder of outdoor apparel brand Patagonia, said he will be giving his company away to a private trust to use its profits to fight climate change.
- Instead of taking the company public or selling the $3B brand, 83-year-old Chouinard and his wife and two kids will transfer all of their company voting power and shares to protecting and conserving nature.
- Since the shares were donated as a gift, the family had to pay a $17.5M tax on the transfer and Patagonia will no longer be distributing any profits to the them.
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The Spin
Narrative B
This is the clearest proof yet that Yvon Chouinard is a leader in the movement away from shareholder capitalism and toward stakeholder capitalism. In a world infected with inequality and environmental destruction, Patagonia has chosen to put the Earth and its inhabitants above profit.
Narrative A
While Chouinard's decision to break away from the age-old shareholder motto is a bold move with noble motives to help the planet, it's too soon to celebrate. Without a financial incentive to keep on track, it remains to be seen whether this strategy will succeed.