Eddie Smith, CEO of Grady-White Boats built in Greenville, NC, has chosen to put his company into a perpetual purpose trust—a move that may have cost him as much as $400 million if sold outright to another boatbuilder. Yet Smith, now 83, decided that instead of selling, he put control of his company into a nonprofit trust with plans for establishing dealer relationships, employee profit-sharing and charitable contributions.
Included was a bonus for every one of Grady-White's craftsman tied to his or her role and seniority. All 350 workers on the floor were told of Smith's sale and bonus creating numerous happy tears for many who were there.
This decision does have precedent: In 2022, Yvon Chouinard of Patagonia, the outdoor apparel company, did something very similar, a marine industry first at the time. Since 2018, as many as 80 companies have chosen to do the same, according to a New York Times article.
"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," Smith said in a press release. "I had to try to figure out how we transition to the future and take care of our team while retaining the business."
Smith first purchased the award-winning boatbuilder in 1968 when he was just 26 when it was suffering from bankruptcy. Since, he built Grady-White into one of the leading boating brands known throughout the country. He reflects honestly over how to approach his decision.
"Many of my friends in the boating industry have sold their companies and none of them are happy with about what happened to them after the sale," Smith said in an Instagram post. "Their companies just lost their way; they lost their soul, and I certainly did not want that to happen to Grady-White."
Smith said he wanted to ensure the trust would keep the core values and principles stay in operation; He wanted to take care of his employees, his customers, his dealers and his community and continue to deliver the ultimate boating experience.
His original plan as he ushered Grady-White through the years was to pass his legacy along to his only son, Chris. Sadly, Chris passed away 5 years ago from the paralytic neurological disease, ALS. His wife of 57 years, Jo Allison, passed a year earlier.
"It was God's plan," he told the New York Times. "Sometimes we don't understand it. I'm looking forward to getting to heaven and asking a few questions."
The daily operation of Grady-White have been left in the capable hands of now-CEO and President, Kris Carroll, herself a 50-year employee of the company, and Executive Vice President, Jonathon Burns. Smith will have a CEO-emeritus role and will serve as an advisor and brand ambassador.
"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. "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 builds boats from 18 to 45 feet producing 29 models in five different categories including center consoles, dual consoles, coastal explorer, express cabin and walkaround cabin boats. Grady-White has earned every third-party customer satisfaction award ever presented in the marine industry, including all eight of the J.D. Power and Associates Customer Satisfaction Awards for its category and 24 consecutive NMMA Customer Satisfaction Index awards. For more information about Grady-White Boats please see www.gradywhite.com.