STEWARD-OWNERSHIP

Profits Serve Purpose

Impact-driven for-profit entrepreneurs are vital for economic, social, and environmental innovation. But these founders face an important challenge: how to guard purpose over profit.

We think for-profit steward-ownership is the answer.

Steward-owned companies share two principles.

Principle One

Profits Serve Purpose

Profits are reinvested in the business, used to fairly pay founders and capital providers, shared with employees, and used to improve communities – all to further a purpose.

Principle Two

Self-Governance

Stewards safeguard the company’s purpose to benefit all stakeholders (founders, investors, employees, customers, vendors, and communities).

Steward-Ownership MODEL

The most basic form involves a public benefit company and three classes of ownership.

  • Steward Shares
  • Economic Shares
  • Purpose Shares

Purpose Shareholder

A Purpose Shareholder has no economic rights and has only one job – to veto certain purpose-damaging actions. Examples of Purpose Share veto rights could be the right to veto conversion away from a public benefit corporation or the right to veto a company sale to a group that doesn’t share the same values. Having a Purpose Shareholder shows a true commitment to purpose.

Steward-Ownership Share Rights

Steward

Steward Shares hold voting rights, but no economic rights. Only people close to the business can hold these shares.

Economic

Steward Shares hold voting rights, but no economic rights. Only people close to the business can hold these shares.

Purpose

Steward Shares hold voting rights, but no economic rights. Only people close to the business can hold these shares.

Is steward-ownership right for your business?