COMPENSATIONDISCUSSIONANDANALYSIS OurStructurefor Setting Compensation WhilecertainmembersofmanagementattendedthemeetingsoftheCompensationCommitteein2022byinvitation,they didnotattendexecutivesessionsofthemeetingsorportionsofCompensationCommitteemeetingsduringwhichtheir individual compensationwasdiscussedorapproved. OurCompensationPeerGroup PRO XY S Ourcompensationpeergroupismadeupoftechnologycompaniesandfinancialcompanies.Thismixisintendedto T A providetheCompensationCommitteewithinsightintothedifferencesacrossthesetwobusinesssectorsinwhichwe TEMENT generallycompeteforexecutivetalent. In decidingwhetheracompanyshouldbeincludedinourcompensationpeergroup,theCompensationCommittee generallyconsidersthefollowingscreeningcriteria: • revenue; • marketcapitalization; • historical growth rates; • primaryline of business; • whetherthecompanyhasarecognizableandwell-regardedbrand;and • whetherwecompetewiththecompanyforexecutivetalent. Eachmemberofthecompensationpeergroupwaschosenbasedononeormoreofthefactorslistedabove,butnotall factors were relevant for every peer company.While some of the compensationpeergroupmembersmaybesignificantly larger than PayPal in terms of revenue or market capitalization,the CompensationCommitteehas determinedthatsuch companiesshouldbeincludedinthepeergroupprimarilybecausewecompetewiththemfortalent. Ourcompensationpeergroupfor2022wascomposedof11technologycompanies(whichgenerallyarecompanieswith whichwedirectlycompetefortalent)andeightfinancialcompanies(whichgenerallyarecompanieswithwhichwe competefortalentandthatmorecloselymatchourfinancialperformance).Applyingthecriteriadescribedabove,the CompensationCommitteeremovedTheWesternUnionCompanyfromourcompensationpeergroup. PeerGroupCompanies Technology Companies Financial Companies Adobe Inc. American Express Alphabet Inc. Company Amazon.com, Inc. Discover Financial Apple Inc. Services Block, Inc. Fidelity National Information Intuit Inc. Services, Inc. Meta Platforms, Inc. Fiserv Inc. Global Payments Inc. Oracle Corporation JP Morgan Chase & Co. Salesforce, Inc. Mastercard Incorporated ServiceNow, Inc. Visa Inc. In contemplatingourexecutivecompensationprogramfor2022andgoingforward,theCompensationCommittee consideredthecompensationprogramsofourcompensationpeergroupaswellasourgoalsofrewardingperformance andretainingcoretoptalent.Wealsocompareourperformanceagainsttheperformanceofcompaniesinour compensationpeergroupthatwebelievehaverelativelycomparablebusinessmodels.Ourexecutivecompensation programisgenerallydesignedtoroughlyparalleltheprogramsofmembersofourcompensationpeergroupbecauseour employeeshavehistoricallybeenrecruitedbythesecompetitors. •2023ProxyStatement 67