Eddie Smith, owner of Grady-White Boats, has handed control of the company to a perpetual purpose trust.
In addition, a nonprofit organisation is to be created that will grant the company’s profits to charities.
The move is intended to preserve a ‘relationship-driven approach to business, rigorous focus on quality, and generous community giving’.
This perpetual purpose trust, with its affiliated charity organisation, is believed to be the largest in the US since Patagonia’s in 2022 and a first for the marine industry.
Eddie bought Grady-White in 1968 when he was 26 years-old, and has since grown the company from near bankruptcy to an award-winning boat builder.
Profit sharing
He received offers to sell for the company for more than $400 million two years’ ago but turned this down as he says he couldn’t be sure that any buyer would embrace the company’s way of operating under his long-held values and principles.
These included profit sharing with employees, commitment to high-quality products, exceptional customer satisfaction and support for the community.
“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,” said Eddie.
“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.”
Non-profit organisation
The new non-profit organisation is set to donate tens of millions of dollars annually to education, healthcare, conservation and the community.
The purpose trust will oversee the management of the company, maintaining continuity in Greenville, North Carolina.
Grady-White’s executive team will remain in place to lead the company under the new structure.
Eddie will transition to a non-operational CEO emeritus role, serving as an advisor and brand ambassador.
New chapter
“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,” said CEO and president Kris Carroll.
“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.”
Grady-White, founded in 1959, builds boats from 18 to 45 feet in 29 models across five different categories and has been owned by Eddie since 1968.
