PROPOSAL3:VOTETOAPPROVEPAYPALHOLDINGS,INC.2015EQUITYINCENTIVEAWARDPLAN,ASAMENDEDANDRESTATED Increasing the NumberofSharesReservedforIssuanceundertheEquityPlan asordinaryincome(andsubjecttoincometaxwithholdinginrespectofanemployee)uponexerciseofanonqualified stockoptionequaltotheexcessofthefairmarketvalueofthesharespurchasedovertheirpurchaseprice,andthe Companywillbeentitledtoacorrespondingdeduction,excepttotheextentthedeductionlimitsofSection162(m)ofthe Codeapply.Aparticipantwillnotrecognizeincome(exceptforpurposesofthealternativeminimumtax)uponexerciseof anincentivestockoption.If thesharesacquiredbyexerciseofanincentivestockoptionareheldforatleasttwoyearsfrom PRO thedatetheoptionwasgrantedandoneyearfromthedateitwasexercised,anygainorlossarisingfromasubsequent XY dispositionof those shareswill be taxed as long-term capital gain or loss, and the Company (or, if applicable,the employer S subsidiary) will not be entitled to any deduction. If, however, such shares are disposed of within the above-described T A period, then in the year of that disposition the participant will recognize compensationtaxable as ordinary income equal to TEMENT theexcessofthelesserof(i)theamountrealizeduponthatdispositionand(ii)theexcessofthefairmarketvalueofthose sharesonthedateofexerciseoverthepurchaseprice,andtheCompany(or,ifapplicable,theemployersubsidiary)willbe entitled to a correspondingdeduction,exceptto the extentthe deductionlimits of Section162(m) of the Code apply. StockAppreciationRights Aparticipantwill not recognizetaxableincomeatthetimeSARsaregrantedandtheCompany(or,ifapplicable,the employersubsidiary)will not be entitledto a tax deductionat that time. Upon exercise,the participantwill recognize compensationtaxableasordinaryincome(andsubjecttoincometaxwithholdinginrespectofanemployee)inanamount equaltothefairmarketvalueofanysharesdeliveredandtheamountofcashpaidbytheCompany.Thisamountis deductiblebytheCompany(or,ifapplicable,theemployersubsidiary)ascompensationexpense,excepttotheextentthe deductionlimitsof Section162(m)oftheCodeapply. OtherStock-BasedAwards Aparticipantwill not recognizetaxableincomeatthetimerestrictedstock(includingperformance-basedrestrictedstock) is granted and the Company(or,if applicable,the employersubsidiary)will not be entitledto a tax deductionat that time, unlesstheparticipantmakesanelectiontobetaxedatthattime.Ifsuchelectionismade,theparticipantwillrecognize compensationtaxableasordinaryincome(andsubjecttoincometaxwithholdinginrespectofanemployee)atthetimeof thegrantinanamountequaltotheexcessofthefairmarketvalueforthesharesatsuchtimeovertheamount,ifany,paid for those shares. If such election is not made, the participant will recognize compensationtaxable as ordinary income (and subjecttoincometaxwithholdinginrespectofanemployee)atthetimetherestrictionsconstitutingasubstantialriskof forfeiture lapse in an amount equal to the excess of the fair market value of the shares at such time over the amount, if any, paidforthoseshares.Theamountofordinaryincomerecognizedbymakingtheabove-describedelectionoruponthe lapseofrestrictionsis deductibleby the Company(or,if applicable,the employersubsidiary)as compensationexpense, excepttotheextentthedeductionlimitsofSection162(m)oftheCodeapply. Aparticipantwill not recognizetaxableincomeatthetimeaRSU(includingaperformance-basedRSU)isgrantedandthe Company(or,ifapplicable,theemployersubsidiary)willnotbeentitledtoataxdeductionatthattime.Uponsettlementof RSUs,theparticipantwill recognizecompensationtaxableasordinaryincome(andsubjecttoincometaxwithholdingin respectofanemployee)inanamountequaltothefairmarketvalueofanysharesdeliveredandtheamountofanycash paidbytheCompany.TheamountofordinaryincomerecognizedisdeductiblebytheCompany(or,ifapplicable,the employersubsidiary)ascompensationexpense,excepttotheextentthedeductionlimitsofSection162(m)oftheCode apply. DividendEquivalents In general, dividend equivalentsare generally taxable as ordinary income when the participantreceivesa payout of the dividendequivalent, andtheCompanygenerallywillbeentitledtoataxdeductionatthesametimeandinthesame amount. OtherCash-BasedAwards Aparticipantwhoreceivesanothercash-basedawardwillrealizecompensationtaxableasordinaryincomeinanamount equaltothecashpaidatthetimeofsuchpayment.Incometaxwithholdingrequirementsgenerallyapplytoamountsthat are recognizedasordinaryincomeandtheCompanygenerallywillbeentitledtoadeductioninthesameamountandat thesametimethattheparticipantrecognizesordinaryincome. ThetaxconsequencesforequityawardsoutsideoftheU.S.maydiffersignificantlyfromtheU.S.federalincometax consequencesdescribedabove. •2023ProxyStatement 93