Grady-White Boats Transitions to a Perpetual Purpose Trust
Eddie Smith, owner of Grady-White Boats, has gifted control of the company to a perpetual purpose trust. In addition, a nonprofit organization will be created that will grant the company’s profits to charities.
This perpetual purpose trust, with its affiliated charity organization, is the largest in the U.S. since Patagonia’s in 2022 and a first for the marine industry, as noted by the company. Smith, who was 26 when he bought Grady-White in 1968, grew the company from near bankruptcy to an award-winning boat builder. Two years ago, when he contemplated the company’s future, he received offers to sell for over $400 million. However he turned it down.
Relationships—with employees, customers and dealers—have been key to Grady-White’s success, Smith said in a press release, “and it’s a core belief of mine that if you’re successful, you really should share that success with your people, who helped you be successful. I had to try to figure out how we transition to the future and take care of our team while retaining the soul of this business.”
New Structure, Same Grady-White
The answer was to transition ownership to a perpetual purpose trust. Smith will be gifting control and ownership of the company to the Grady-White Boats Perpetual Purpose Trust and a not-yet-named 501(c)(4) nonprofit organization, according to the company. The 501(c)(4) plans to donate money annually to education, healthcare, conservation and the community.
The purpose trust will oversee the management of the company, maintaining continuity in Greenville, N.C. Grady-White’s executive team will remain in place to lead the company under the new structure, according to the company. Smith will transition to a non-operational CEO emeritus role, serving as an advisor and brand ambassador.
As part of the announcement, Smith shared in the press release that a special gift would be given to all current Grady-White employees thanking them for faithful service and their commitment to the future, in honor of his transfer of ownership of the company. The bonuses were arranged in levels based on years of service and craftsman levels, with the total given in the millions.
“As a company built on strong principles and dedication to our incredible team, we are deeply grateful for Eddie’s leadership, stewardship and commitment to the future of Grady-White Boats,” CEO and President Kris Carroll said in the release. “As we enter this new chapter, our team takes great pride in knowing Grady-White and its people-first culture and community support will continue to thrive for many, many decades to come.”
