Yvon Chouinard, 83, the creator of the Patagonia outdoor clothing firm, along with his wife and two daughters, have given ownership over the business to a nonprofit organization and a specifically crafted trust, reports The New York Times.
The Chouinard family reportedly transferred ownership over Patagonia, which is estimated to be worth $3 billion, to a foundation and trust that was established to maintain the company’s independence and make sure that all of its profits, or about $100 million annually, go toward battling climate change and preserving undeveloped lands around the world. The Patagonia Purpose Trust, which defends the company’s ideals, received 2% of Chouinard and his wife’s shares, with the rest 98% going to the environmental NGO Holdfast Collective.
The Chouinard family will pay around $17.5 million in taxes without receiving any tax breaks since they donated some shares to a trust. According to the terms of the agreement, the Chouinard family would not be able to regain control of the business.
source: nytimes.com
