CORPORATEGOVERNANCE ExecutiveSuccessionPlanning ExecutiveSuccessionPlanning TheBoardrecognizestheimportanceofeffectiveexecutiveleadershiptoPayPalssuccessandreviewsexecutive successionplanningatleastannually.Aspartofthisprocess,theBoardreviewsanddiscussesthecapabilitiesofour executivemanagement,aswellassuccessionplanningandpotentialsuccessorsfortheCEOandourotherexecutive PRO officers. The process includes considerationof organizationaland operationalneeds,competitivechallenges,leadership/ XY managementpotentialanddevelopmentandemergencysituations. S T A In 2022, we wereproudtowelcomenewleaders,includingArchieDeskus,BlakeJorgensenandJohnKim,tooursenior TEMENT leadershipteam.InlightofMr.SchulmansannouncedintentiontoretirefromPayPalasPresidentandCEOatyear-end,the BoardhasformedaCEOsearchcommitteeandretainedasearchfirmtohelpidentifyMr.Schulmanssuccessor. DirectorOrientationandContinuingEducation UponjoiningtheBoard,directorsparticipateinarobustorientationprogramtohelpensurethattheyhavethetools, resourcesandknowledgetoprovideeffectiveoversightoftheCompanyandmanagement.Ourdirectororientation programfamiliarizesnewdirectorswiththeCompanysbusiness,strategy,operationsandculture,amongotherareas,and assists them in developingthe skills and knowledgerequiredto serveon the BoardandanyassignedBoardcommittees. Newdirectorsmeetwithmembersofourexecutiveleadershipteamandotherkeyleaderstogainadeeperunderstanding of the Companysbusinessandoperations.Directorsregularlyengage,formallyandinformally,withotherdirectorsand senior leadersto share ideas, build stronger working relationships,gain broader perspectivesand strengthentheir working knowledgeoftheCompanysbusinessandstrategies.Fromtimetotime,managementprovides,orinvitesoutsideexperts to provide, educationalbriefingsto the Board on business,corporategovernance,regulatoryandcompliancemattersand othertopicstohelpenhanceskillsandknowledgerelevanttotheirserviceasaPayPaldirector.Inaddition,directorsare encouragedtoattendaccrediteddirectoreducationprogramsattheCompanysexpense. BoardandCommitteeEvaluations OurBoardiscommittedtocontinuouscorporategovernanceimprovement,andtheBoardandcommitteeself-evaluations play a critical role in ensuring the overall effectiveness of our Board and each committee. The Board and its principal committeesperformanannualself-evaluationtoassesstheirperformanceandeffectivenessandtoidentifyopportunities to improve.Asappropriate,theself-evaluationsresultin updatesor changestoourpracticesaswellascommitmentsto continueexistingpracticesthatourdirectorsbelievecontributepositivelyto theeffectivefunctioningof our Boardandits committees.TheGovernanceCommitteeannuallyreviewstheself-evaluationprocesstoensureitisoperatingeffectively. Complete Participate in One- Review Incorporate Questionnaire on-One Interview Responses Feedback Each director completes A one-on-one interview The questionnaires Feedback from the a written questionnaire is conducted with and anonymized evaluations informs that addresses strategic each director to interview responses are Board and committee oversight, Board/ review the Boards reviewed with the full enhancements. committee structure and its committees Board, and committee and composition performance over the self-evaluations are and interactions with, prior year and identify reviewed by each and evaluation of, opportunities to improve committee, in each management and Board Board effectiveness case in executive processes. going forward. session. •2023ProxyStatement 29