PROPOSAL3:VOTETOAPPROVEPAYPALHOLDINGS,INC.2015EQUITYINCENTIVEAWARDPLAN,ASAMENDEDANDRESTATED Increasing the NumberofSharesReservedforIssuanceundertheEquityPlan creation. Equity compensationrepresentsa significantportionof the compensationpackagefor our key employees, includingasignificantportionof the AIP grantedto our NEOs. Our equity awardsgenerallyvestoverseveralyears,andthe valueultimatelyrealizedfromtheseawardsdependsonthevalueofoursharesatthetimeofvesting.Westronglybelieve that granting equity awards motivatesemployeesto think and act like owners,rewardingthemwhenvalueiscreatedfor stockholders. WeManageOurEquityIncentiveProgramThoughtfully Wemanageourlong-termstockholderdilutionbycloselymanagingthenumberofequityawardsgrantedannuallyand regularly engagingwithourcompensationconsultant.Wegrantwhatwebelieveisanappropriateamountofequity necessarytoattract,rewardandretainemployees.Ourthree-yearaverageburnrate,whichwedefineasthenumberof sharessubjecttoequityawardsgrantedundertheEquityPlaninafiscalyeardividedbytheweightedaverageshares outstandingfor that fiscal year, was 0.98% for fiscal years 2020 through 2022. After factoring in the Inducement Plan, which wasadoptedin2022,our2022burnratewas1.43%. AsofMarch30,2023,equityawardsoutstandingundertheEquityPlanwere:(a)24,813,135RSUs,(b)46,151DSUs,(c) 5,001,052PBRSUs(includingunderour2023AIP)basedontargetperformance.AsofMarch30,2023,equityawards outstandingundertheInducementPlanwere2,035,116RSUsand40,128PBRSUs(includingunderour2023AIP)basedon target performance.Anadditional113,480optionsand42,394RSUswereoutstandingthathadbeenassumedin connectionwithmergersandothercorporatetransactionsasofMarch30,2023. AsofMarch30,2023,wehad32,091,456sharesoutstandingundertheEquityPlan.Accordingly,excludingouremployee stockpurchaseplan,ourapproximately29,860,338outstandingsharesunderlyingawardsplusapproximately 12,810,813 shares available for future grant under the Equity Plan as of March 30, 2023 representedapproximately43% of oursharesoutstanding(commonlyreferredtoasthe“overhang”). AsofMarch30,2023,theaverageweightedpershareexercisepriceofalloutstandingstockoptions(which,inallcases wereassumedinconnectionwithmergersandothercorporatetransactions)was$13.05andtheweightedaverage remainingcontractualtermwas1.16years. 86 •2023ProxyStatement