Equilar Provides Clarity on Yahoo! Retention Payment for Tumblr CEO

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Analysis Reveals Calculation of Figure Reported To Be $81 Million To $110 Million

Equilar, the leader in executive compensation and corporate governance data, today provided additional insight into the retention payment made by Yahoo! to the founder of Tumblr, following the June acquisition of the micro-blogging platform and social net

Equilar, the leader in executive compensation and corporate governance data, today provided additional insight into the retention payment made by Yahoo! to the founder of Tumblr, following the June ac

The discrepancy in reported values is due to an unassociated $29 million of assumed unvested Tumblr stock options and restricted stock units held by Tumblr stockholders and vested optionholders of which Mr. Karp will receive an undefined amount.

Equilar, the leader in executive compensation and corporate governance data, today provided additional insight into the retention payment made by Yahoo! to the founder of Tumblr, following the June acquisition of the micro-blogging platform and social networking website.

On August 8, 2013, Yahoo! announced that Tumblr, the popular micro-blogging site, will remain an independent business unit with founder David Karp remaining at the helm as CEO. In addition to the reported $250 million Mr. Karp earned from the acquisition, a number of news sources have reported that he will receive a retention package to stay with the company. The total value of the retention package varies by news source, with most news outlets reporting $81 million while other sources report the value at $110 million.

Based on the disclosure in Yahoo!’s 10-Q filed on August 8, Mr. Karp will receive a stock award worth $41 million and a cash award worth $40 million, both paid out over four years. The discrepancy in reported values is due to an unassociated $29 million of assumed unvested Tumblr stock options and restricted stock units held by Tumblr stockholders and vested optionholders of which Mr. Karp will receive an undefined amount.

According to the most recent Yahoo! 10-Q, “Tumblr stockholders and vested optionholders were paid in cash, outstanding Tumblr unvested options and restricted stock units were assumed and converted into equivalent awards covering Yahoo! common stock and a portion of the Tumblr shares held by its founder were exchanged for Yahoo! common stock.”

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About Equilar (http://www.equilar.com)
Equilar is the leading provider of executive compensation and corporate governance data and measurement tools to corporations, nonprofits, consulting firms, institutional investors, and the media. Using its extensive database, Equilar allows clients to accurately benchmark and track executive and board compensation, equity grants, award policies, and compensation practices. Equilar’s C-Suite mapping technology also reveals business networking opportunities by identifying pathways to executives and board members at companies of interest. Equilar’s research has been consistently cited by Bloomberg, The New York Times, The Wall Street Journal and other leading media outlets.

For more information on Equilar, please contact:
Via Aquino, (650) 241-6697, vaquino(at)equilar(dot)com

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