PROPOSAL8:STOCKHOLDERPROPOSAL–REPORTONENSURINGRESPECTFORCIVILLIBERTIES PROPOSAL8: StockholderProposal–ReportonEnsuringRespect PRO for Civil Liberties XY S T A NationalCenterforPublicPolicyResearch(“NCPPR”)onbehalfoftheFreeEnterpriseProjectoftheNCPPRhasadvisedthe TEMENT CompanythatitintendstopresentthefollowingstockholderproposalattheAnnualMeeting.NCPPRhasindicatedthatthe FreeEnterpriseProjectholdssufficientsharesof PayPalcommonstocktomeettherequirementsofRule14a-8.The stockholderproposalwillbevotedonattheAnnualMeetingonlyifproperlypresentedbyoronbehalfoftheproponent. Thetextofthestockholderproposalandsupportingstatement(includingfootnotes)appearexactlyasreceivedbythe Companyunlessotherwisenoted.Allstatementscontainedinthestockholderproposalandsupportingstatementarethe sole responsibilityof the proponent.The stockholderproposalmay containassertionsabouttheCompanyorothermatters that we believeare incorrect,but we have not attemptedto refute all those assertions. THEBOARDRECOMMENDSAVOTEAGAINSTSTOCKHOLDERPROPOSAL8BASEDONTHEREASONS SETFORTHINPAYPALSSTATEMENTINOPPOSITIONFOLLOWINGTHESTOCKHOLDERPROPOSAL. ReportonEnsuringRespectforCivilLiberties SupportingStatement:Companiesthatprovidebankingorfinancialservicesareessentialpillarsofthemarketplace.On accountoftheiruniqueandpivotalroleinAmericaseconomy,manyfederalandstatelawsalreadyprohibitthemfrom discriminatingwhenprovidingfinancialservicestothepublic.AndtheUNDeclarationofHumanRights,consistentwith manyotherlawsandtheU.S.Constitution,recognizesthat“everyonehastherighttofreedomofthought,conscience,and 1 religion.” Financial institutions should respect these freedoms. AsshareholdersofPayPal,webelieveitisofgreatimportthatthecompanyrespectcivilrightsbyidentifyingpotential factors that may contributeto discriminationin the provision of services based on race, color, religion, sex, national origin, or social, political, or religious views. Weareparticularlyconcernedwithrecentevidenceofreligiousandpoliticaldiscriminationbycompaniesinthefinancial 2 servicesindustry,as detailedin the Statementon DebankingandFreeSpeech. Whencompaniesengageinthiskindofdiscrimination,theyhindertheabilityofindividuals,groups,andbusinessesto accessandequallyparticipateinthemarketplaceandinsteadskewittotheirownends. TheStatementonDebankingandFreeSpeechidentifiedmanycompaniesinthefinancialservicesindustrythatfrequently includevagueandsubjectivestandardsintheirpolicieslike“hatespeech”orpromoting“intolerance”thatallow employeestodenyorrestrictserviceforarbitraryordiscriminatoryreasons.The2022editionoftheViewpointDiversity 3 BusinessIndex alsoidentifiednumerousexamplesofthisinmanycompaniestermsofservice.Theinclusionofvagueand arbitrary terms risks impacting clients exercise of their constitutionally protected civil rights, by creating the potential that suchpersonsorgroupswillbedeniedaccesstoessentialservicesasaconsequenceoftheirspeechorpoliticalactivity. Moreover,theyriskgivingfringeactivistsandgovernmentsafootholdtodemandthatprivatefinancialinstitutionsdeny serviceunderthesweeping,unfettereddiscretionthatsuchpoliciesprovide. Theseactionsandpoliciesareanaffronttopublictrust,destabilizethemarket,andthreatentheabilityofAmericancitizens to live freely and do business accordingto their deeply held convictions. 4 PayPalalsomaintainsthatitpromotesgoodsocialpolicyanddiversity,equity,andinclusionpractices. Itisimportantfor theshareholderstoknowthatPayPalisadheringtoitsownstandardsbyservingdiverseconsumerswithoutregardtotheir beliefs or other factors above. Resolved:ShareholdersrequesttheBoardofDirectorsconductanevaluationandissueareportwithinthenextyear,at reasonablecostandexcludingproprietaryinformationanddisclosureofanythingthatwouldconstituteanadmissionof pendinglitigation, evaluating how it overseesrisks related to discriminationagainst individuals based on their race, color, religion (including religious views), sex, national origin, or political views, and whether such discrimination may impact individuals exercise of their constitutionally protected civil rights. 1 https://www.un.org/en/about-us/universal-declaration-of-human-rights. 2 https://storage.googleapis.com/vds_storage/document/Statement%20on%20Debanking%20and%20Free%20Speech.pdf. 3 https://viewpointdiversityscore.org/business-index. 4 https://investor.pypl.com/esg-strategy/default.aspx;https://about.pypl.com/how-we-work/diversity-and-inclusion/default.aspx •2023ProxyStatement 105