COMPENSATIONDISCUSSIONANDANALYSIS OtherCompensationElements BecausePayPalisahighlyvisiblecompany,theCompensationCommitteeauthorizedaCEOsecurityprogramfor Mr. Schulmantoaddresssafetyconcerns,whichincludespecificthreatstohissafetyarisingdirectlyasaresultofhis position as our Presidentand CEO. We paidto procure,install and maintainpersonalresidentialsecuritymeasuresfor Mr. Schulmanandforthecostsofsecuritypersonnelduringpersonaltravel.Inaddition,theCompensationCommitteehas approvedMr.Schulmansuseofourcorporateaircraftforpersonaltravelinconnectionwithhisoverallsecurityprogram. Webelievethecostsofthisoverallsecurityprogramarereasonable,appropriateandbenefittheCompany.Althoughwe donotconsiderMr.Schulmansoverallsecurityprogramtobeaperquisiteforhisbenefitforthereasonsdescribedabove, thecostsrelatedtopersonalsecuritymeasuresforMr.Schulmanathisresidenceandduringpersonaltravel,aswellasthe costsofourcorporateaircraftforpersonaltravel,arereportedinthe“AllOtherCompensation”columninthe2022 SummaryCompensationTablebelow. OurStructureforSettingCompensation RolesandResponsibilities CompensationCommittee OurexecutivecompensationprogramisdesignedandadministeredunderthedirectionandcontroloftheCompensation Committee,whichismadeupsolelyofindependentdirectors.TheCompensationCommitteereviewsandapprovesour overall executivecompensationprogram,policiesandpracticesandsetsthecompensationofourexecutiveofficers, includingourNEOs. CompensationConsultant TheCompensationCommitteesindependentcompensationconsultantprovidesadviceandresourcestohelpthe CompensationCommitteeassesstheeffectivenessofourexecutivecompensationstrategyandprogram.The compensationconsultantreportsdirectlytotheCompensationCommittee,andtheCompensationCommitteehasthe sole powertoterminateorreplacetheconsultantatanytime.CompensiahasservedastheCompensationCommittees compensationconsultantsince2016. TheCompensationCommitteedirectedCompensiatohelpmembersofmanagementobtaintheinformationnecessaryfor managementtoformulaterecommendationstotheCompensationCommittee,whichareevaluatedbyCompensia.A representativeof CompensiaalsoattendsCompensationCommitteemeetings,inexecutivesessionwithnomembersof managementpresent,andmeetswiththechairandmembersoftheCompensationCommitteeoutsideofregular meetings. Aspartofitsengagementin2022,Compensiaprovidedanenvironmentalscanofexecutivecompensation,evaluatedour compensationpeergroupcomposition,evaluatedexecutivecashandequitycompensationlevelsatourcompensation peergroupcompanies,reviewedproposedcompensationadjustmentsandchangestoexistingarrangements,advisedon theframeworkforourannualandlong-termincentiveawards,assessedexecutiveperquisitesrelativetopeerandbroader marketpracticesandreviewedproposedcompensationarrangementsfornewexecutives,aswellasthecompensationof ournon-employeedirectors.Compensiadidnotprovideanyotherservicestousin2022. Recognizingtheimportanceofobjectiveadvice,theCompensationCommitteecloselyexaminestheproceduresand safeguardsofitscompensationconsultanttoensurethatitsservicesareobjective.TheCompensationCommitteehas assessedtheindependenceofCompensiapursuanttotheapplicableNasdaqlistingstandardsandSECrulesand concludedthatCompensiasworkfortheCompensationCommitteedoesnotraiseanyconflictofinterest. CEOandtheHumanResourcesDepartment TheCompensationCommitteeworkswithmembersofourmanagementteam,includingMr.SchulmanandKausik Rajgopal,ourEVP,PeopleandSourcing,toformulatethespecificplanandawarddesigns,includingperformance measuresandperformancetargetlevels,necessarytoalignourexecutivecompensationprogramwithourbusiness objectivesandstrategies. Mr. SchulmanreviewswiththeCompensationCommitteehisperformanceevaluationsofeachofourotherNEOstogether with his recommendationsregardingbasesalaryadjustments,annualincentiveawardsandlong-termincentivestoallow theCompensationCommitteetoconsiderourfinancialandoperationalresultsaswellasindividualperformanceinits compensationdecisions.TheCompensationCommitteemakesallfinaldecisionsregardingthecompensationofallofour NEOs. 66 •2023ProxyStatement