Deep Dive Return

This sub-chapter provides you with a deeper understanding of the logic of returns for investors in steward-ownership-aligned financing and showcases different options of structuring returns. It will revolve all around the questions of: How much is enough, how much is adequate and feasible – and why?

Short Summary

• Return in steward-ownership-aligned financing is not uncapped and not maximizing but is limited in some way. This ensures that companies are not treated as commodities.

• Returns in steward-ownership-aligned financing are limited – either by amount, duration or influence.

• The concept of a “limited” return ensures that there is no unlimited compulsory financial extraction from the company that cannot be ended and/ or that the company cannot be forced to put shareholder value and dividends over its purpose and long-term development.

• There is not one “right” method of limiting returns and not one process to “fair” return limitations. The process is subjective and depends on the companies and the investors involved. A more generic answer regarding which processes and limitations are adequate and suitable for different types of companies is still being explored.