COMPENSATIONDISCUSSIONANDANALYSIS ExecutiveSummary ExecutiveSummary 2022FinancialandOperationalPerformanceHighlights PRO 1 1 Revenue Non-GAAP Operating Margin Free Cash Flow XY S T A $30 25% 25.1% 24.8% $6 TEMENT $25 $25.4B $27.5B 20% $5 $5.4B $5.1B 21.3% $4.9B $20 $21.5B $4 15% $15 $3 10% $10 $2 $5 5% $1 $0 0% $0 2020 2021 2022 2020 2021 2022 2020 2021 2022 Delivering attractive revenue growth: Expanding network at scale: Growing payment volume: 8% 435M $1.36T Revenue Increase from 2021 Active Accounts Total Payment Volume (Spot Basis) (Up 2% from 2021) (Up 9% from 2021) 1 Non-GAAPOperatingMarginandFreeCashFlowarenotfinancialmeasurespreparedinaccordancewithgenerallyacceptedaccountingprinciples(“GAAP”).Forinformationon howwecomputethesenon-GAAPfinancialmeasuresandareconciliationtothemostdirectlycomparablefinancialmeasurespreparedinaccordancewithGAAP,pleasereferto “AppendixA:ReconciliationofNon-GAAPFinancialMeasures”inthisproxystatement. In 2022, we deliveredsolid financial and operatingresults across our key performancemetrics.This was accomplished duringachallengingperiodofmacroeconomicuncertainty,slowingecommercegrowthandgeopoliticalinstability.We endedtheyearwith435millionactiveconsumerandmerchantaccountsandourrevenueincreasedby8%to$27.5billion comparedto2021.In2022,weprocessed22.3billionpaymenttransactionsand$1.36trillionintotalpaymentvolume acrossourplatform,representingyear-over-yearincreasesof16%and9%,respectively. This progressis a direct result of our sharpenedfocus, responsibleinnovationand enhancedcost disciplineto executeon ourcorestrategicpriorities.In 2022, we createdbettercheckoutexperiences,enhancedourdigitalwallet,expandedour global pay later solutions and grew our unbrandedprocessingbusinesswithleadingmerchantsaroundtheglobe. Wealsoexperiencedseveralimportantleadershiptransitionsin2022.InMarch,weappointedArchieDeskusasourChief Information Officer to oversee PayPals global information technology operations. In September 2022, we brought on John Kim to serve as our new Chief Product Officer. Mr. Kim brings extensive innovation, product management and technical experience to his role in leading the product organization. Mr. Kim succeeded Mark Britto, who helped to ensure a smooth transition. And Gabrielle Rabinovitch seamlessly stepped into the role of interim Chief Financial Officer upon John Raineys departure in May 2022,andactingChiefFinancialOfficerbeginninginSeptember2022whenBlakeJorgensentookamedicalleave. 2022NEOCompensationProgramElements For2022,theCompensationCommitteeapprovedanexecutivecompensationprogrambasedonour“payfor performance”philosophythatisdesignedtoalignourexecutiveofficerscompensationwiththekeydriversofprofitable growth.Theultimategoalsofourexecutivecompensationprogramaretoproperlyincentivizeandrewardourexecutives for performancethatexceedsexpectations,providetransparencyforourexecutivesandourstockholdersandposition PayPalcompetitivelytoenableustoattractandretainhighlycapableleadersinanintenselycompetitivetalentmarket. •2023ProxyStatement 51