Peter Buck, founder of Subway, leaves 50% stake to charity

The late co-founder of NEW YORK Reuters has left his 50% stake in the sandwich chain to his philanthropic foundation and protects billions of dollars in proceeds from the company's potential sale from the reach of the U.S. tax authorities.

The Peter and Carmen Lucia Buck Foundation PCLB said this week that the estate of Peter Buck, who co-founded Subway in 1965 and passed away in 2021, will donate 50% of his stake in the privately held company to the foundation.

It is not clear why the donation happened two years after Buck's death. It will protect both the foundation and the estate from a big tax bill when it is sold.

In January, Reuters reported that Subway was looking at a sale with the help of a financial adviser. The Wall Street Journal reported that a deal could value Subway at as much as $10 billion.

A Subway spokeswoman said the company didn't say anything about its ownership structure and business plans.

It is not uncommon for company founders to donate stakes in their companies to charities, a gesture that serves philanthropy as well as estate planning. Yvon Chouinard, the billionaire founder of the outdoor apparel brand Patagonia, gave his company last year to a trust that will use its profits to fight the climate crisis.

Fred DeLuca, who was a nuclear physicist and co-founder, started Subway in 1965 after DeLuca asked Buck for advice on how to pay for his college tuition. The two men started Subway with the help of a $1,000 investment from Buck. The Milford, Connecticut-based company, known for its foot-long sandwiches, has more than 37,000 restaurants in over 100 countries.

This gift will allow the foundation to expand its philanthropic endeavors and impact many more lives, particularly our work to create educational opportunities for all students, something that Dr. Buck cared so deeply about, said Carrie Schindele, executive director of the foundation.