Yvon walks the talk--Owner Gives Patagonia Away

[pais alto]

As if Yvon Chouinard wasn’t legendary enough… The headline is

Billionaire No More: Patagonia Founder Gives Away the Company​

https://www.nytimes.com/2022/09/14/climate/patagonia-climate-philanthropy-chouinard.html

or

Yvon walks the talk

https://www.nytimes.com/2022/09/14/climate/patagonia-climate-philanthropy-chouinard.html To be continued…

www.tetongravity.com

Just amazing, stunning actually.

I don’t know how this place feels about copy and paste from paywalled sources (in this case the NYT) so that’s why I posted the link to the copied text in the thread I put up on TGR.

Mods, nuke this thread if it’s inappropriate.

 

[socalgal]

Wow. I love the fact that they as a family did this. Mainly, sticking to their principles, especially at great cost.

 

[BMC]

It’s indeed very altruistic. But will the company now lose its focus and sense of purpose? It’s now owned and run by charitable groups with no background in outdoor gear (so it seems).

I’m not critical, but I see real risks of Patagonia losing its way - becoming a cash cow for its charitable purpose, rather than an outdoor gear company donating its profits to environmental causes,

 

[pais alto]

It’s indeed very altruistic. But will the company now lose its focus and sense of purpose? It’s now owned and run by charitable groups with no background in outdoor gear (so it seems).

I’m not critical, but I see real risks of Patagonia losing its way - becoming a cash cow for its charitable purpose, rather than an outdoor gear company donating its profits to environmental causes,

If I read the article right, the trust will maintain the for-profit company and will have oversight.

Patagonia will continue to operate as a private, for-profit corporation based in Ventura, Calif., selling more than $1 billion worth of jackets, hats and ski pants each year. But the Chouinards, who controlled Patagonia until last month, no longer own the company.
[…]
The trust, which will be overseen by members of the family and their closest advisers, is intended to ensure that Patagonia makes good on its commitment to run a socially responsible business and give away its profits.

I think a key part of it is that Chouinard needed some sort of scheme to keep it going the way they wanted it to go after he hung it up. Guy’s 83, he can’t run it forever, the kids don’t want it, and if he sold it…well, who knows what would happen.

Nothing lasts forever.

 

[BMC]

If I read the article right, the trust will maintain the for-profit company and will have oversight.

I think a key part of it is that Chouinard needed some sort of scheme to keep it going the way they wanted it to go after he hung it up. Guy’s 83, he can’t run it forever, the kids don’t want it, and if he sold it…well, who knows what would happen.

Nothing lasts forever.

To be honest though, even that commitment suggests the problem I’m pointing to. And perhaps Chouinard no longer saw Patagonia’s primary purpose as making good ski or climbing jackets, wetsuits etc. maybe his view of Patagonia was that it existed to be a socially responsible business. But it did seem to focus on excellence in the things it did, and in doing those things, was socially responsible, as they saw it.

But yes I 100% agree. A sale would run many of the same risks. Possibly what I’d have preferred to see is an IPO with a large % of shares reserved for charitable foundations of their choice. That’s just because I’m a PPatagonia fan boy. I use their ski gear and wetsuits amongst other things, because they’re so good. They’re better made than most of the market, and last. I hope that continues.

 

[coskigirl]

Here’s a non-paywall article.

Patagonia founder just donated the entire company, worth $3 billion, to fight climate change

Moving forward, Patagonia's profits that are not re-invested into the business will be donated to a group of nonprofit organizations fighting climate change.

www.cnbc.com

 

[Eric@ict]

Ill be very surprised if the company doesn't lose its direction. Either in its value of its products or in profits going other direction. Once the visionary leaves a company, it all changes to someone else's vision.

 

[GB_Ski]

Wow, they made Holdfast a 501(c)4 and forgo all the tax saving? It looks like they will be using Patagonia as a war chest for lobbying.

Looks like I'm converting all my outdoor clothing to Patagonia when I need to.

 

[Alexzn]

Yvon is an amazing person and Patagonia is a great company. I am amazed that he is not as well known as the rich a$$holes like Bezos or Musk who do not have even 1% of Yvon's humility and social responsibility.

P.S. My preference for Arcteryx gear feel rather lame today...

 

[Alexzn]

Ill be very surprised if the company doesn't lose its direction. Either in its value of its products or in profits going other direction. Once the visionary leaves a company, it all changes to someone else's vision.

Did you really think Yvon was still running the company in his 80s?

 

[chilehed]

Did you really think Yvon was still running the company in his 80s?

I don't see why not, I know a couple of folks in their mid-80's that still have that kind of energy level and mental acuity.

 

[James]

This link is gifted, but maybe only works one time? Don’t know.
https://www.nytimes.com/2022/09/14/...ytcore-ios-share&referringSource=articleShare

I don't see why not, I know a couple of folks in their mid-80's that still have that kind of energy level and mental acuity.

This was from 2016-
————————-
One day, I found him sitting outside on a bench under the jacarandas by the parking lot, watching his company bustle around him,…

“This is my job,” Chouinard said. “I just sit here. I take care of my correspondence, and I’m out of here. Some days, I’m here from eleven to two. If I want to go surfing all day tomorrow, I’ll go surfing all day tomorrow.”


I asked him how much power he had. “Power? I don’t have any power. If I complain about something, I often get a passive-aggressive response. I put up with it, because the alternative is to micromanage. I’m just the owner.” He called his executive style “management by absence.” He used to read business books and study various executive styles and corporate structures, here and abroad, but he prefers to take his lessons from nature—from ant colonies, for example. “There’s no management,” he said. “Every ant just does his job. They communicate and figure it out. It’s like a Navy sealteam. The whole team has to agree on what the mission is.” It’s also true, however, that Chouinard’s occasionally whimsical notions send the ants scurrying. Absent or not, he’s still the big ant…
———————

https://www.newyorker.com/magazine/2016/09/19/patagonias-philosopher-king

 

[fatbob]

Ill be very surprised if the company doesn't lose its direction. Either in its value of its products or in profits going other direction. Once the visionary leaves a company, it all changes to someone else's vision.

Not picking you out particulalry but this is a new thing (or relatively new given most social enterprises are kinda fledgling or small scale). We are trained by capitalist consumer society to think all profit is good, growth of a business is necessary etc etc.

Just doing a thought experiment on this - could an ultimate objective of the trust not be to take over the world in outdoor apparel then gradually put itself out of business by making products that are so durable re-usable etc that people don't have to keep consuming? i.e. turn endless demand for growth to something else good for the planet.

I understand that Patagucci were already heading that way by deliberately not pursuing all growth in the NA market.

Even the crowd here, if they are honest could probably live without 1 or 2 new shells
(I know all a bit awkward when part of the raison d'etre of this site is to sell us on new bright and shiny things, which curmudgeon though I am I'm not immune to either).

Way way way better than selling to some PE guys who'd have leveraged it to death, milked its brand while cost controlling its way to lower quality and then IPO'd it - Not that Chouinard would have ever gone that way.

 

[BMC]

Not picking you out particulalry but this is a new thing (or relatively new given most social enterprises are kinda fledgling or small scale). We are trained by capitalist consumer society to think all profit is good, growth of a business is necessary etc etc.

Just doing a thought experiment on this - could an ultimate objective of the trust not be to take over the world in outdoor apparel then gradually put itself out of business by making products that are so durable re-usable etc that people don't have to keep consuming? i.e. turn endless demand for growth to something else good for the planet.

I understand that Patagucci were already heading that way by deliberately not pursuing all growth in the NA market.

Even the crowd here, if they are honest could probably live without 1 or 2 new shells
(I know all a bit awkward when part of the raison d'etre of this site is to sell us on new bright and shiny things, which curmudgeon though I am I'm not immune to either).

Way way way better than selling to some PE guys who'd have leveraged it to death, milked its brand while cost controlling its way to lower quality and then IPO'd it - Not that Chouinard would have ever gone that way.

I doubt that would be the direction it goes, but who knows until it happens? I’m assuming the new owners have no particular expertise in outdoor gear, and possibly no interest in it. I’m assuming their priorities will be the environmental objectives they foster…not necessarily the best gear for a powder day at Alta, or climbing, or a barrel at Bells. Again, I might be wrong. But it seems more likely to me.

But if my fears are right it will take some years for this to take effect. We’ve probably still got at least a decade of a Patagonia still focused on producing excellent product for outdoor pursuits. And if I’m wrong? Win win win and dinner is on me…humble pie lol

 

[fatbob]

But if my fears are right it will take some years for this to take effect. We’ve probably still got at least a decade of a Patagonia still focused on producing excellent product for outdoor pursuits. And if I’m wrong? Win win win and dinner is on me…humble pie lol

I don't think we're saying anything different really - long term could ultimately make Patagucci redundant as in a must-have shiny new stuff every year, look at me buying my skinny pumpkin oatmilk latte in my on fleek berry micropuffy urban trendster - but in the med-long term they can be turning everyone on to the joys of their built to last, excellently designed products with ethically sourced materials.

As I said above I think there is less chance of the brand being ruined this way than other exit routes.

 

[François Pugh]

I sure wish I could afford to give away 3 billion dollars.
And yeah, Patogonia makes good stuff. I hope that doesn't change.

 

[chilehed]

This was from 2016-
————————-
One day, I found him sitting outside on a bench under the jacarandas by the parking lot, watching his company bustle around him,…

“This is my job,” Chouinard said. “I just sit here. I take care of my correspondence, and I’m out of here. Some days, I’m here from eleven to two. If I want to go surfing all day tomorrow, I’ll go surfing all day tomorrow.”...

I guess I see why now. Being a complete bystander sounds like a sweet job.

 

[martyg]

It’s indeed very altruistic. But will the company now lose its focus and sense of purpose? It’s now owned and run by charitable groups with no background in outdoor gear (so it seems).

I’m not critical, but I see real risks of Patagonia losing its way - becoming a cash cow for its charitable purpose, rather than an outdoor gear company donating its profits to environmental causes,

Management, PLMs, sourcing, design, etc stays in place. Nothing changes on that end.

 

[martyg]

I don't see why not, I know a couple of folks in their mid-80's that still have that kind of energy level and mental acuity.

Yvon has not been the driver of the company in decades.

 

[pais alto]

Yvon talks the walk.

Yvon Chouinard Donates Patagonia to Fight Climate Crisis

Earth is now our only shareholder. Patagonia is giving away all future profits to fight the climate and extinction crisis. All profits are now the planet's.

www.patagonia.com