PROPOSAL8:STOCKHOLDERPROPOSAL–REPORTONENSURINGRESPECTFORCIVILLIBERTIES PayPalsStatementinOpposition PAYPALSBOARDRECOMMENDSTHATSTOCKHOLDERSVOTEAGAINST THISPROPOSALFORTHEFOLLOWINGREASONS: PayPalisanindustryleaderinprovidingaffordable,convenientandsecurefinancialservicestocustomersof diversebackgroundsandviewpoints. PayPaliscommittedtoconsistentlymaintainingthehigheststandardsofintegrityinourimplementationofourpolicies, proceduresandprocesses,whichareintendedtoensurethatourservicesareprovidedfairlytoallourcustomers.PayPal hasbeenanindustryleaderinprovidingaccesstoinnovativefinancialproducts,andindemocratizingfinancialservicesto small andmedium-sizedbusinessesandentrepreneurswhorelyonourplatform,productsandservicestoreachtheirown customers.PayPalworkstoprovidehistoricallyunderbankedpopulationsandbusinessesaccesstocapital,especially thoseownedbyunderrepresentedentrepreneurs.PayPalprovidesserviceswiththegoalofinclusivityandofsupporting freedomofexpression;wedonotdiscriminateinprovidingservicestothosewithunderrepresentedorevenunpopular viewpoints. PayPalconsistentlyemploysobjective,narrowlytailoredpoliciestoaddressaccountsuspensionandclosure,and thosepoliciesarebasedonensuringthesafetyofourcustomersandprotectingPayPalslegitimatebusiness interests. PayPaliscommittedtotheintegrityofourplatform,andtoensuringthesafety,securityandprivacyofourcustomersand others, while complyingwith legal requirements.PayPalsuspendsor closesaccountsinaccordancewithourobligations asaregulatedfinancialinstitutionandto ensurethesafetyof our platformandourcustomers.Specifically,PayPalsriskand complianceframeworkincludespoliciesandmonitoringmechanismstoidentifypotentialfraudandfinancialcrimes, includingmoneylaundering,sanctionsrisksandotherillegalactivities.Thecardnetwork,merchantacquirersandbanking partnersthat PayPal relies upon contractuallyto execute transactionsfor consumersand merchantsalso impose restrictions on the types of transactions that we can process on our platform. These partner obligations, and others, includingthoserequiredbylaw,aresetforthinourAcceptableUsePolicy(AUP),inconnectionwithourUserAgreement (UA). Collectively, these policies and accompanyingprocessesare intendedto protectPayPalscustomers,our platform andthepaymentsecosystemagainstillicitandharmfulactivitysuchascounterfeitingorfraud. Suspensionsandclosuresofcustomeraccountsareundertakentopreservetheintegrityofourplatformandtoprotectour customersandothersfromharm.PayPalimplementstheseandothermeasureswiththeaimofprovidingsafeand affordablefinancial servicesto people of all backgrounds,while, at the same time, supportingfreedomof expressionand inclusivity. PayPals policies are administeredwithout regard to viewpoint, religious beliefs or identity, political opinions, ideologies,or individual identities. PayPalalreadypubliclyprovidesrobustreportingofitsdiversityandanti-discriminationinitiatives. TheProposalcallsforareportingobligationbeyondPayPalsalreadyrobustreportingofourdiversityandanti- discriminationprogramsandwouldundulyinterferewithPayPalsbusinessoperations.InclusionisoneofPayPalscore valuesandisreflectedintheCompanysmissiontodemocratizefinancialservices.Ouranti-discriminationeffortsare reflectedin our Codeof BusinessConductandEthicsandotherpublicdisclosures.Inaddition,wereportpubliclyonour 1 commitmenttodiversityacrossmultipledimensions,whichispartofouroverallanti-discriminationefforts. Accordingly, ourBoardbelievesthatdevotingadditionaltimeandresourcestoproducethereporttheProponentsuggestswouldonly distract from and duplicate the ongoing anti-discriminationand inclusion programsand initiativesunderwayat PayPal. *** OurBoardhascarefullyconsideredtheProposal,andforthereasonssetforthabove,theBoardbelievesthatdevoting additional time and resourcesto the proposedreportingwouldbeunnecessary,costlyandwouldonlydistractfromthe ongoingprogramsalreadyinplaceatPayPal.Therefore,ourBoardbelievesthattheProposalisnotinthebestinterestsof PayPalanditsstockholders. THEBOARDRECOMMENDSAVOTEAGAINSTSTOCKHOLDERPROPOSAL8. 1 See,e.g., our Global Impact Report. 106 •2023ProxyStatement