Who owns Padi?

Discussion in 'Q and A for Scuba Certification Agencies' started by Elkfriend, Apr 14, 2010.

  1. Elkfriend

    Elkfriend Angel Fish

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    Who owns Padi and what happens with the profits?
     
  2. Wookie

    Wookie ScubaBoard Business Sponsor ScubaBoard Business Sponsor

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    PADI is a privately traded, for profit corporation. It is owned by the shareholders, and the profits go to them. If you are asking who owns the shares, that's kind of like asking who owns General Electric, and where do the profits go.

    I would guess that some shares are owned by the officers of PADI, the rest being held by the Cronin and Erikson families or estates.
     
  3. ringmod65

    ringmod65 Nassau Grouper

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    The prior statement is a bit of an oxymoron as privately held companies rarely "trade" their stock. The comparison to General Electric is off-base since companies with publicly traded equities are required to report significant information regarding institutional investors and insider stock ownership. Also, the stock of privately held corporations such as PADI is generally closely held by a small number of investors, unlike a monolithic multinational such as GE, which has thousands of stockholders and must account for the disposition of certain profits inasmuch as they are required to disclose executive compensation and dividends.

    Regarding PADI's Ownership and Subsidiary / Affiliate Structure:

    PADI Worldwide is a privately held corporation guided by a Chief Executive Officer (CEO) and officers and directors comprising the Worldwide Executive Committee. The PADI Worldwide group includes seven service offices, some of which are wholly owned subsidiaries, while others are licensees. PADI Worldwide manages the long range planning and global marketing for the organization while the officers, managers and staff at each PADI Office conduct the day-to-day business activities that support PADI programs and provide services to PADI Members. PADI Members influence corporate decisions by sharing their opinions through advisory boards, member forums and responding to surveys sent out by PADI Worldwide or PADI Offices. PADI Worldwide is also affiliated with several companies, foundations and organizations that provide additional services to PADI Members and to the dive industry. Corporate affiliates include the PADI Travel Network which provides travel services and Diving Science and Technology (DSAT) Corp. which develops educational and promotional products and programs. The PADI Diving Society is an affiliated organization for underwater enthusiasts that encourages active participation in diving. The Project AWARE Foundation and the PADI Foundation are nonprofit organizations established by PADI to support environmental and educational efforts through grant programs and other efforts.


    (Source: NCPAD, NCPAD:Organizations by Location Accessed on 14-Apr-10)
     
  4. Rhone Man

    Rhone Man Divemaster

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    Location: Cayman Islands
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    I have always had this theory that PADI doesn't make nearly as much money as everyone likes to pretend on SB. Otherwise it surely would have had a splashy IPO before now and the original founders would have cashed out.
     
  5. Dhboner

    Dhboner DIR Practitioner

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    I heard "Apple" recently bought "PADI" and are renaming it "IPAD"

    (Sorry...long day at work).

    Bob
     
    drbill and triplecove like this.
  6. ianr33

    ianr33 Orca

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    ......................
     
  7. mike_s

    mike_s Blue Whale

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    I'm not sure that people/investors (as a whole, most who are non divers) would see a dive certification agency (regardless of agency name) as something worthy of doing large scale "public offering" investments in.

    Even less so "today" with LDS sales and certifications being drastically down.
     
  8. Walter

    Walter Scuba Instructor

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    Finally, a funny (sorta) play on PADI's name.
     
  9. Dhboner

    Dhboner DIR Practitioner

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    "sorta"...What does a guy have to do to earn a chuckle?

    Cheers!

    Bob
     
  10. Rhone Man

    Rhone Man Divemaster

    # of Dives: 1,000 - 2,499
    Location: Cayman Islands
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    Today it would be sheer madness, but in days of yore when PADI could point to 15% annual growth in certifications and had good global brand awareness, you could usually wring an IPO out of that, especially on the small cap markets - unless your balance sheet was tiny.

    Concepts like actually making a profit were certainly not a requirement for an IPO during the dot com years or the 'new economy' years.

    I don't know, but my guess is that the reason it didn't happen was that the turnover and balance sheet were just too small to take seriously.
     
  11. Thalassamania

    Thalassamania Diving Polymath ScubaBoard Supporter

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    I think that your missing what I have been told is the reality. I suspect that you are correct that PADI principals, per se, doesn't make as much as many expect, but I have been told that the "off the PADI books" profits from items such as insurance "finders fees" (nice name for kickback, bribe, lamordida, el chanchullo, etc.) that are paid to individuals by the insurance agents who place the actual coverage. This is, as I understand it, a practice that is common to all of the private, for profit, major agencies.
     
  12. Rhone Man

    Rhone Man Divemaster

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    Location: Cayman Islands
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    That would be another good reason not to have an IPO...
     
  13. Thalassamania

    Thalassamania Diving Polymath ScubaBoard Supporter

    # of Dives:
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    Exactly.:D
     
  14. techdive90

    techdive90 Garibaldi

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    I think the information given above is a bit out of date. The rumour in the trade is that the original owners have sold out to some sort of corporate fund. It might explain all the reorganisation in Europe at the moment. If so, it's been kept very quiet. But then again, the industry is full of misinformation.
     
  15. Diver081970

    Diver081970 Garibaldi

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    The time where PADI Worldwide was owned by people interested in scuba diving is over.
    A few years ago the Seidler Equity Partners bought PADI worldwide and this month they sold it to Lincolnshire Management NY.
    You may doubt that this helps to the quality of education. Cash flow and short term profit seems to be more important now!
     
  16. JohnN

    JohnN Loggerhead Turtle

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    My bet is Bernie Ecclestone is the 'real' owner of PADI :cool2:
     
  17. OldNSalty

    OldNSalty Loggerhead Turtle

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    Location: Just this side of paradise.
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    Nope-he just owns the commercial rights and profits.
     

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