Posted on Sep 15, 2022
The founder of Patagonia is giving his company away to help fight climate change
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Posted >1 y ago
Responses: 2
PO1 William "Chip" Nagel
..."The Patagonia Purpose Trust will control all voting stock of the company (2%), while the Holdfast Collective, a climate change nonprofit, will own all nonvoting stock (98%).
Chouinard, who is currently a board member, said in a statement that while trying to fight climate change, he realized his company was contributing to it. So he had been thinking about what to do with the business.
One option was to sell it and donate the money, but Chouinard said he was concerned new owners might not hold the same values or keep the same employees. The other option was to become a publicly traded entity.
"What a disaster that would have been," he 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 responsibility."
The company will continue to give 1% of its earnings to grassroots environmental groups, and the leadership will not change."
..."The Patagonia Purpose Trust will control all voting stock of the company (2%), while the Holdfast Collective, a climate change nonprofit, will own all nonvoting stock (98%).
Chouinard, who is currently a board member, said in a statement that while trying to fight climate change, he realized his company was contributing to it. So he had been thinking about what to do with the business.
One option was to sell it and donate the money, but Chouinard said he was concerned new owners might not hold the same values or keep the same employees. The other option was to become a publicly traded entity.
"What a disaster that would have been," he 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 responsibility."
The company will continue to give 1% of its earnings to grassroots environmental groups, and the leadership will not change."
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