Coherent Ownership Model
What this is about
Most entrepreneurs never really choose their ownership model. They adopt the default: a standard Ltd (Private Limited Company), a cap table that made sense at the time, a structure inherited from whoever helped them set up the company. It works, technically. And for many companies the common models can be a perfect fit.
But for some entrepreneurs, something doesn't quite fit. They are questioning whether it’s the right fit for their company: Do the conventional ownership models actually reflect what I believe about entrepreneurship?
Maybe, the logic of rapid growth and exit feels at odds with what they're actually building. Maybe, the incentive structures pull in a direction they don't want to go. Maybe, the way ownership is set up doesn't reflect how they think about their team, their profits, or their purpose.
That feeling is worth taking seriously. Ownership is one of the deepest design decisions a company makes and it's rarely revisited after the fact. Steward ownership offers an alternative: a model built around purpose-orientation and self-determination.
The resources on this page help you to explore steward ownership, who adopted it and how and whether it might be a coherent ownership model for your company.
Two principles of steward ownership
Instead of bundling power and money, steward ownership separates them.
Purpose orientation
Profits are a means to an end, not an end in themselves. They serve the company’s mission and development or can be used to fund charitable activities. The value created within the company cannot be extracted by the company owners for their personal benefit.
Self-determination
The company cannot become an object of speculation but remains self-determined and independent in the long term. The steering wheel always remains in the hands of people who are connected to the company and its mission.
What does that mean for finding a coherent ownership model
That control and economic rights are separated – so that the people closely connected hold the power and the money goes towards the purpose of the company. It's a deliberate alternative to shareholder value maximisation. Whether that fits what you want to build is for you to decide.
Resources on coherent ownership models
Need a quick intro? 5 resources over 5 weeks: Sign up to our free email series to get key resources and why they matter for you to your inbox!
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What is ownership, what is steward ownership?
In this article, Armin Steuernagel, co-founder of PURPOSE, dives into the philosophical connection of steward ownership. He explores how ownership has been defined throughout history and the importance of resonance.
Ecosia
Ecosia uses steward ownership to ensure that profits are used to fight deforestation.
Freeing Ben & Jerry’s
In this inspirational interview Ben Cohen, co-founder of Ben and Jerry's reflects on the role of businesses in society and how to build a company structure that can uphold its social purpose: an increasingly big challenge in Ben & Jerry's current ownership structure.
Patagonia
When Yvon Chouinard faced the question of what to do with his $3 billion company, neither selling nor inheritance felt right. Discover how Patagonia worked with steward ownership to protect its mission for generations to come.
BuurtzorgT
BuurtzorgT, a self-organized mental healthcare provider from the Netherlands, has been in steward ownership since 2020, aligning its structure with its mission to put patients before profits.
VYLD
German start-up VYLD promotes menstrual health while protecting oceans. Their mission: create innovative, eco-friendly, healthy seaweed-based products – starting with tampons – with steward ownership.
Toolkit on Steward-Ownership
Do you need more than single resources, but a whole, practical guide, helping you to find out if steward ownership is the right decision for your company? Check our toolkit on steward ownership: how the model works, which legal structures exist, what questions arise in practice, and how companies have approached them. Free to use, published as open content (soon updated and available as an online learning journey).
5 emails to get you started
We know there are a lot of resources on steward ownership. That’s why we want to make your start easier: With our 5-part email series on coherent ownership models!
How does it work? Sign up below and get one resource once a week! We'll give you a quick summary and tell you why each topic matters when comparing ownership models. And don't worry: You'll just receive these five emails. If you want to stay in touch afterwards, that's totally up to you!
Have questions? Join our open call.
Almost every week, the Purpose Foundation hosts a free, open session on steward ownership. We introduce the basics, walk through real-world examples, and answer questions from participants. There's no registration fee and no prerequisites and everyone is welcome. It's an easy way to learn about the topic, hear the questions others are asking, and see how steward ownership works in practice.
Join the next open call