PROPOSAL3:VOTETOAPPROVEPAYPALHOLDINGS,INC.2015EQUITYINCENTIVEAWARDPLAN,ASAMENDEDANDRESTATED PROPOSAL3: VotetoApprovePayPalHoldings,Inc.2015Equity PRO IncentiveAwardPlan,asAmendedandRestated XY S T A Weareseekingstockholderapprovaltoamendandrestateour2015EquityIncentiveAwardPlan(the“EquityPlan”)to TEMENT increasethenumberofsharesofPayPalcommonstockreservedforissuanceundertheEquityPlanbyanadditional 34.6 million shares of PayPal common stock. We believethat our ability to continue offering equity incentive awards under theEquityPlaniscriticalto our ability to attract, retain and reward employees,non-employeedirectorsand other persons providingservicestotheCompany,particularlyinlightofthehighlycompetitivemarketfortalentinwhichweoperate. TheBoardhasdeterminedthatitisinthebestinterestsoftheCompanyanditsstockholderstoapprovethisproposal.The Board,upontherecommendationoftheCompensationCommittee,hasapprovedtheamendedandrestatedEquityPlan to increaseof sharesreservedfor issuance,subjectto stockholderapproval,andrecommendsthatourstockholdersvote in favor of this proposal at the Annual Meeting. This proposal is also being submitted to our stockholdersin compliance with Nasdaqlistingstandardsconcerningstockholderapprovalofequitycompensationplansand/ormaterialrevisionsto theseplans. If our stockholdersapprovethis proposal,the amendedandrestatedEquityPlanwillbecomeeffectiveasofthedateof stockholderapproval, andthe34.6millionadditionalshares,minusthenumberofanysharessubjecttoanequityaward grantedunderthePayPalHoldings,Inc.2022InducementPlan(the“InducementPlan”)aftertheRecordDatebutpriorto thedateofstockholderapproval,willbeavailableforgrantundertheEquityPlan.Inaddition,ifourstockholdersapprove theamendedandrestatedEquityPlan,aspresentedinthisproposal,wewillceasegrantingnewawardsunderthe InducementPlan,andthe2,918,665sharesthatwereavailableforgrantundertheInducementPlanasofMarch30,2023 wouldnolongerbeavailableforissuanceasofthedateofthestockholderapproval.Ifourstockholdersdonotapprove this proposal, the amendedandrestatedEquityPlanandtheadditionalsharesreservedforissuancewillnottakeeffect, andourEquityPlanandtheInducementPlanwillcontinuetobeadministeredintheircurrentform. Ourexecutiveofficersanddirectorshaveaninterestinthisproposalbyvirtueoftheirbeingeligibletoreceiveequity awardsundertheEquityPlan.ReferencestotheEquityPlanintheremainderofthisdiscussionrefertotheamendedand restatedEquity Plan as if this proposal has been approvedby our stockholders,unless otherwisespecifiedor the context otherwisereferencestheEquityPlanpriortoitbeingamendedandrestated. IncreasingtheNumberofSharesReservedforIssuanceundertheEquity Plan Background TheEquityPlanwasinitiallyadoptedbytheBoardinJune2015andapprovedbyeBayInc.astheCompanyssole stockholderatthattime.Atour2018annualmeetingofstockholdersheldinMay2018,ourstockholdersapprovedan amendmentandrestatementoftheEquityPlanwhich,amongotheritems,increasedthenumberofsharesreservedfor issuanceundertheEquityPlanto145millionshares. SharesAvailableforFutureAwards AsofMarch30,2023,12,810,813sharesremainedavailableforgrantundertheEquityPlan.TheBoardbelievesthat additional shares are necessaryto meet the Companysanticipatedequitycompensationneeds.Followingtheproposed shareincrease,weexpectthatsharesundertheEquityPlanwilllastapproximatelyonetotwoyears.Thisestimateisbased onouraverageburnrateoverthepastthreeyears,excludingawardsgrantedinsubstitutionofacquiredcompanyawards, asdescribedbelow.Theactualamountoftimethatthesenewshareswilllastwillvarydependingonfactorssuchas changesinemployeeheadcount,futureforfeituresandcancellations,futureacquisitionsandourstockprice. ReasonsforVotingfortheProposal Long-TermEquityisaKeyComponentofourCompensationProgram OurcomprehensiveequityincentiveprogramisdesignedtoenabletheCompanytoattract,retainandrewardour employees,non-employeedirectorsandotherpersonsprovidingservicestotheCompanyanditssubsidiaries.TheBoard also believesthat equity compensationis essentialto link executivecompensationwith long-termstockholdervalue •2023ProxyStatement 85