Yahoo Will Pay Tumblr Founder David Karp Up to $81 Million to Stick Around David Karp will earn about $20 million a year if he stays at Yahoo for the next four years.

By Julie Bort

This story originally appeared on Business Insider

Tumblr founder David Karp says that he didn't expect to sell his company to Yahoo, or sell it at all, this year. He says he was motivated to sell because Yahoo would give Tumblr a "shortcut" to "all the very hard things" Tumblr had to learn in order to grow.

But on Thursday Yahoo revealed another pretty good carrot to get Karp to sell: Yahoo will pay him $81 million in cash and stocks if he stays with the company for four years. So it said in a form filed to the SEC, and spotted by AllThingsD's Peter Kafka.

#insert RSS here# Specifically, he gets Yahoo common stock valued at $41 million and $40 million cash. It averages out to about $20 million a year.

The filing also says he gets unvested stock options and restricted stock units valued at $29 million. However, a Yahoo spokesperson tells us that goes to Tumblr employees.

Related: 3 Leadership Lessons From Tumblr's David Karp

When not writing for Business Insider I can usually be found on the trails, on my mountain bike or skis -- if you know where to look.

Want to be an BIZ Experiences Leadership Network contributor? Apply now to join.

Editor's Pick

Most Popular

See all
Business Culture

4 Easy Ways to Build a Team-First Culture — and How It Makes Your Business Better

How creating a collaborative culture preps your business for prosperity.

By Douglas Wigdor
Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for BIZ Experiencess to pursue in 2025.

By Eve Gumpel
Science & Technology

OpenAI's Latest Move Is a Game Changer — Here's How Smart Solopreneurs Are Turning It Into Profit

OpenAI's latest AI tool acts like a full-time assistant, helping solopreneurs save time, find leads and grow their business without hiring.

By Ben Angel
Business Solutions

Tell Your Story and Share Your Strategies with the $49 Youbooks Tool

Use AI to craft full-length non-fiction books that can help build your brand.

By BIZ Experiences Store
Science & Technology

AI Isn't Plug-and-Play — You Need a Strategy. Here's Your Guide to Building One.

Don't just "add AI" — build a strategy. This guide helps founders avoid common pitfalls and create a step-by-step roadmap to harness real value from AI.

By Nicholas Leighton
Starting a Business

I Built a $20 Million Company by Age 22 While Still in College. Here's How I Did It and What I Learned Along the Way.

Wealth-building in your early twenties isn't about playing it safe; it's about exploiting the one time in life when having nothing to lose gives you everything to gain.

By Emil Barr