Patagonia Founder Yves Chouinard Didn't Want To Be A Billionaire, So He Gave His Entire Company To Environmental Nonprofits

Patagonia, the famous outdoor apparel company, has restructured itself in a new and revolutionary way. Instead of becoming a publicly traded company, Patagonia will transfer ownership to an environmental nonprofit and trust, meaning that going forward, all of its profits will go to fighting climate change.

The decision, made by founder Yves Chouinard along with his board and family, places 98 percent of Patagonia’s stonks in the hands of the Holdfast Collective, an environmental organization. Those shares are also non-voting, which means they don’t give Holdfast Collective decision-making authority.

The remaining 2 percent of voting shares will go to the Patagonia Purpose Trust, set up to protect the company’s values and make business decisions. It’s a new kind of setup that Chouinard hopes will inspire other companies and wealthy individuals to do similar things.

Reportedly, Chouinard’s reasoning for transferring Patagonia’s ownership is because of his inclusion on Forbes Magazine’s "Billionaire List." Chouinard apparently did not like being identified as a billionaire and wanted to immediately rectify the situation.

Memers online, including one of the environmental nonprofits benefiting from the Patagonia money, joked about Cousin Greg from the HBO show Succession -- a character whose uncle follows a similar path by giving away his inheritance.

Many joked about the response of the private equity industry and other capitalists who are unlikely to make the same decision as Chouinard. In particular, many wondered how finance bros who wear Patagonia as a key part of their wardrobe would handle the news.

Others were skeptical of Patagonia’s move, wondering if it was a tax dodge and pointing out the company’s complicity in other alleged excesses of capitalism.

In general, the company’s move seemed to receive a warm reception from many, with numerous internet users seeing it as a hopeful sign that capitalism may change the way it operates in response to the era-defining threat of climate change.