Grady-White Boats announced that owner Eddie Smith has gifted control of the company to a perpetual purpose trust, with plans to create a nonprofit that will grant the builder’s profits to charity. The trust and its affiliated charity organization mark the largest such transition in the U.S. since outdoor apparel and gear retailer Patagonia’s in 2022, and a first for the marine industry, according to a press release.
“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,” president and CEO Kris Carroll said in the release.
“Relationships — with employees, customers and dealers — have been key to Grady-White’s success,” Smith added, “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.”
Smith, who bought Grady-White in 1968 at age 26 and grew it from near bankruptcy into an award-winning boatbuilder, turned down offers exceeding $400 million two years ago as he weighed the company’s future. He said he could not be sure a buyer would preserve his approach to the business, including profit sharing with employees, a commitment to high quality and support for the community.
Under the new structure, the Grady-White Boats Perpetual Purpose Trust and a 501(c)(4) nonprofit are expected to donate tens of millions of dollars annually to education, healthcare, conservation and community causes. The executive team, led by Carroll, will remain in place, while Smith moves into a non-operational CEO emeritus role as advisor and brand ambassador.
Smith also arranged bonuses for all current employees, which number more than 350, tiered by years of service and craftsmanship level.
