PROPOSAL3:VOTETOAPPROVEPAYPALHOLDINGS,INC.2015EQUITYINCENTIVEAWARDPLAN,ASAMENDEDANDRESTATED Increasing the NumberofSharesReservedforIssuanceundertheEquityPlan SummaryoftheEquityPlan ThefollowingisasummaryoftheoperationandprincipalfeaturesoftheEquityPlan.Thesummaryisqualifiedinitsentirety byreferencetotheEquityPlanassetforthinAppendixB. Purpose TheCompensationCommitteeandtheBoardbelievethatitisinthebestinterestsoftheCompanyanditsstockholdersto provide,throughtheEquityPlan,acomprehensiveequityincentiveprogramdesignedtoenabletheCompanytoattract, retain and rewardemployees,non-employeedirectorsandotherpersonsprovidingservicestotheCompany.TheBoard also believesthat equity compensationis essentialto link executivecompensationwith long-termstockholdervalue creation. Equity compensationrepresentsa significantportionof the compensationpackagefor our key employees.We strongly believe that granting equity awards motivates employeesto think and act like owners, rewardingthem when value is created for stockholders. AuthorizedShares UndertheEquityPlan,145millionsharesareauthorizedforissuance.Weareaskingourstockholderstoapprovean additional 34.6 million shares to be available for issuance under the Equity Plan, which will increase the aggregate number of shares authorized under the Equity Plan to 179.6 million. As of March 30, 2023, we had approximately12,810,813 shares available for issuance under the Equity Plan. Based solely on the closing price of the Companys common stock, as reportedontheNasdaqonMarch30,2023,whichwas$74.39pershare,themaximumaggregatemarketvalueofthe 12,810,813 shares that could be issued under the Equity Plan is $952,996,379. ShareReserveReductionandShareRecycling AnysharessubjecttostockoptionsorstockappreciationrightsarecountedagainsttheEquityPlansharereserveas0.5 shareforeveryonesharesubjecttotheaward.AnysharessubjecttoawardsgrantedundertheEquityPlanotherthan optionsorstockappreciationrights(i.e.,full value awards,includingrestrictedstock, restrictedstock units, performance units and performanceshares)arecountedagainsttheEquityPlansharereserveasoneshareforeveryonesharesubject thereto. If any award grantedundertheEquityPlanexpiresorbecomesunexercisablewithouthavingbeenexercisedinfull,is surrenderedorisforfeitedto or repurchasedbytheCompanyduetofailuretovest,theunpurchased,forfeitedor repurchasedsharessubjecttosuchawardbecomeavailableforfuturegrantorsaleundertheEquityPlan. Sharesusedtosatisfytaxwithholdingobligationsrelatingtoanawardorpaytheexercisepriceorpurchasepriceofan optionorstockappreciationrightdonotbecomeavailableforfutureissuanceundertheEquityPlan. AdjustmentstoSharesSubjecttotheEquityPlan Certaintransactionswithourstockholdersnotinvolvingourreceiptofconsideration,suchasastocksplit,spin-off,stock dividend,or certainrecapitalizations,may affect the price of our shares (these transactionsare collectivelyreferred to as “equity restructurings”).In the event that an equity restructuring occurs, the CompensationCommitteeor the Board will equitablyadjusttheclassofsharesissuableandthemaximumnumberofsharesofourstocksubjecttotheEquityPlan,as well as the maximumnumberofsharesthatmaybeissuedtoanemployeeduringanycalendaryear,andwillalso equitablyadjustoutstandingawardsastotheclass,numberofsharesandpricepershareofourstock.Othertypesof transactionsmayalsoaffectourshares,suchasadividendorotherdistribution,reorganization,merger,orotherchangesin corporatestructure.In the event that there is a transactionwhich is not an equity restructuring,and the Compensation CommitteeortheBoarddeterminesthatanadjustmenttotheplanandanyoutstandingawardswouldbeappropriateto preventanydilutionorenlargementofbenefitsundertheEquityPlan,theCompensationCommitteeortheBoardwill equitablyadjusttheEquityPlanastotheclassofsharesissuableandthemaximumnumberofsharesofourstocksubject to the Equity Plan, as well as the maximum number of sharesthat may be issued to an employeeduring any calendaryear, andwillalsoadjustanyoutstandingawardsastotheclass,numberofsharesandpricepershareofourstockinsuch mannerasitmaydeemequitable. Administration TheCompensationCommitteehastheexclusiveauthoritytoadministertheEquityPlan,includingthepowertodetermine eligibility, the types and sizes of awards, the price and timing of awards, the accelerationor waiver of any vesting restriction andtheauthoritytodelegatesuchadministrativeresponsibilities. 88 •2023ProxyStatement