Eddie Smith, owner of Grady-White Boats, announced he has gifted control of the company to a perpetual purpose trust (PPT). This PPT is the largest in the U.S. since Patagonia’s in 2022 and a first for the marine industry. 

Smith will be gifting control and ownership of the company to the Grady-White Boats PPT and a not-yet-named 501(c)(4) nonprofit organization. The 501(c)(4) plans to donate — likely tens of millions of dollars annually — to education, healthcare, conservation and the community.

Operational changes, consistencies

The PPT 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. Smith will transition to a non-operational CEO emeritus role, serving as an advisor and brand ambassador.

Smith announced the transition joined by CEO and President Kris Carroll and Executive Vice President Jonathon Burns. As part of the announcement, Eddie shared 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,” 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.”

Smith’s legacy

Smith bought Grady-White in 1968 and grew the company over the next several decades. He turned down an offer two years ago to sell the company for over $400 million and began considering other solutions for Grady-White’s future.

Relationships — with employees, customers and dealers — have been key to Grady-White’s success, Smith said, “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 hopes Grady-White’s transition will inspire others to continue the mainstreaming of good company stewardship, company mission lock and philanthropic giving through PPT. Natalie Reitman-White of Purpose Owned, who assisted in guiding the company through the transition, believes he’s planted an important seed. 

“The transition of Grady-White Boats to a perpetual purpose trust shows that this model is being embraced by all types of companies to protect what they’ve built and what matters most to them,” Reitman-White said. “Interest in purpose trust ownership across the U.S. is growing, especially among successful privately held companies with values-driven owners who have built deep relationships with their customers, employees, business partners and communities.”