Boat Builder Rejects $400M, Donates Company to Charity

Eddie Smith Jr. spent nearly six decades building Grady-White Boats from a failing North Carolina company into a business generating hundreds of millions in annual revenue. Now he's giving it all away.

At 83, Smith could have sold his company for more than $400 million and retired wealthy. Instead, he transferred ownership to a perpetual purpose trust and nonprofit structure that will direct all future profits toward education, healthcare, conservation, and local communities.

"I just think that those of us that are fortunate enough to be in a position to help others...It's really a gift to me to be able to do what I do," Smith told Fortune.

Smith's journey started in poverty. He grew up eating Spam three times daily while his father worked odd jobs after being orphaned during the Great Depression. Smith became the first in his family to attend college, graduating from the University of North Carolina in 1965.

At 26, he bought the struggling Grady-White with borrowed money and little to his name. The first five years nearly broke him. He quit golf entirely and worked 80 to 100-hour weeks just to keep the doors open.

But Smith built more than a successful business. He created a culture he couldn't bear to sell. Grady-White spends up to $400,000 yearly paying employees to read self-improvement books. Every Friday morning, workers gather for sessions on health, relationships, and financial wellness. The company offers profit sharing and employs a corporate chaplain.

Smith watched friends sell their life's work only to see new owners dismantle everything they'd built. "They lost their culture that they had built, and I just couldn't bear the thought of that happening," he said.

The decision became more urgent after Smith's wife Jo died in 2021, followed by his son Chris in 2022. Without a family successor, Smith needed a different plan.

Why This Inspires

Smith's move follows Patagonia founder Yvon Chouinard, who made a similar decision in 2022. Smith hopes more entrepreneurs will consider this path. "I think there's room for a lot more philanthropy in our country," he said.

Under the new structure, Grady-White can never be sold. The company will continue operating according to Smith's values while donating tens of millions annually to causes that matter.

From eating Spam daily to giving away hundreds of millions, Smith proves success isn't measured by what you keep but by what you give.