Patagonia Chair: ‘We are turning capitalism on its head by making the Earth our only shareholder’
FortuneSep 15, 2022
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.
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.
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.