And if the Holdfast Collective sells the shares, it also won’t be on the hook for capital gains. The Chouinard family isn’t making money from the transfer, and the members no longer own the private, for-profit company. The remaining 2% of Patagonia shares was moved to the Patagonia Purpose Trust, which is the voting stock in the company. In an email, a Patagonia spokesperson said the company pays taxes and has advocated for a higher corporate tax rate to fund climate initiatives. Even before this week’s announcement, Patagonia operated as a B Corp, meaning it is a social enterprise that creates value for non-shareholders, such as the environment.

Source: Forbes September 16, 2022 17:08 UTC