COMPENSATIONDISCUSSIONANDANALYSIS OtherCompensationPracticesandPolicies • anyoutstandingorunpaidincentivecompensation,whethervestedorunvested,thatwasawardedtothecovered employee;and/or • anyincentivecompensationthatwaspaidtoorreceivedbythecoveredemployee(includinggainsrealizedthrough theexerciseofstockoptions)duringthe12-monthperiodprecedingthedateonwhichwehadactualknowledgeofthe triggering event or the full impact of the triggering event was known (or such longer period of time as may be required PRO byanyapplicablestatuteorgovernmentregulation). XY S TheCompanycontinuestomonitorthispolicytoensurethatitisconsistentwithapplicablelawsandwillreviewand T A modifythepolicyasnecessarytoreflectthefinalNasdaqlistingrulesadoptedtoimplementthecompensationrecovery TEMENT requirementsundertheDodd-FrankWallStreetReformandConsumerProtectionAct. SeveranceandChangeinControlProvisions ExecutiveSeverancePlan TheCompanymaintainstheExecutiveSeverancePlan,whichreplacedandsupersededallpriorplansandagreements providingfor severancepaymentsandbenefits,includingthoseinindividualagreementsandseveranceplans.Underthe ExecutiveSeverancePlan,eachNEOiseligibletoreceivepaymentsandbenefitsintheeventofcertainterminationsof employment,includinganinvoluntaryterminationofemploymentbytheCompanywithoutcauseorbytheexecutivefor goodreason.TheExecutiveSeverancePlanincludestheExecutiveLongTermIncentiveProgramadoptedbythe CompensationCommitteeeffectiveJuly1,2021,whichprovidesadditionalseverancebenefitstoNEOs,includingequity vestingprovisionsuponretirement,jobelimination,deathordisability. NopaymentsorbenefitsareprovidedundertheExecutiveSeverancePlanifthereisachangeincontroloftheCompany withoutanaccompanyingqualifyingterminationofemployment(i.e.,wedonotprovideany“single-trigger”changein control payments).WealsodonotprovideanyofourNEOswithanyexcisetax“gross-ups”orotherpaymentor reimbursementofexcisetaxesonseveranceorotherpaymentsinconnectionwithachangeincontroloftheCompany. TheCompensationCommitteebelievesthattheExecutiveSeverancePlanisessentialtofulfilltheCompanysobjectiveof recruiting, developingand retainingkey, high-quality managementtalentin a competitivemarketbecausethese arrangementsprovidereasonableprotectiontoexecutivesintheeventtheyarenotretainedunderspecificcircumstances. TheExecutiveSeverancePlanisalsointendedtofacilitatechangesintheleadershipteambysettingtermsforthe terminationof the employmentofanNEOinadvance,whichallowsforasmoothertransitionofresponsibilitieswhenitis deemedtobeintheCompanysbestinterest.ThechangeincontrolprovisionsintheExecutiveSeverancePlanare intendedtoallowourexecutivestofocustheirattentiononourbusinessoperationsdespitethepotentiallydisruptive impactofaproposedchange-in-controltransaction,toassesstakeoverbidsobjectivelywithoutregardtothepotential impactontheirindividualjobsecurityandtoallowforaseamlesstransitionintheeventofachangeincontrolofthe Company.Theseconsiderationsareespeciallyimportantinlightoftheexecutiveskeyleadershiproles. Mr. Rainey wasineligibleto receiveany benefitsundertheExecutiveSeverancePlaninconnectionwithhisresignation, effective May 23, 2022. As disclosedby the Companyin February2023, in connectionwithaninternalmanagement restructuring, Mr. Brittos employment with the Company terminatedeffectiveFebruary28, 2023. As disclosedby the CompanyinMarch2023,Mr.JorgensensteppeddownfromhispositionastheCompanysCFOasofMarch7,2023andis expectedtocontinuetoserveasasenioradvisortotheCompanythroughSeptember15,2023.Mr.Brittosseparation constituted,andMr.Jorgensensseparationwillconstitute,a qualifyinginvoluntaryterminationwithoutcauseunderthe ExecutiveSeverancePlan,andeachiseligibletoreceiveseverancepaymentsandbenefitspursuanttothetermsand subjecttotheconditionsoftheExecutiveSeverancePlan. AsdisclosedbytheCompanyinFebruary2023,Mr.SchulmaninformedtheBoardthatheplanstoretireasPayPals PresidentandCEOattheendofthisyear.UponhisretirementfromtheCompany,Mr.Schulmanwillbeeligibleforthe retirementbenefitsprovidedundertheExecutiveSeverancePlan. See“PotentialPaymentsUponTerminationorChangeinControl”belowforadescriptionofthesearrangementsandthe estimatedpaymentsandbenefitspayableundertheExecutiveSeverancePlan. TaxandAccountingConsiderations Section162(m)oftheInternalRevenueCode(asamended,“Section162(m)”)generallylimitstaxdeductibilityof compensationpaidbyapubliccompanytoitschiefexecutiveofficer,chieffinancialofficerandcertainothercurrentand formerexecutiveofficersin anyyearto$1millionintheyearcompensationbecomestaxabletotheexecutiveofficer.The CompensationCommitteewillawardnon-deductiblecompensationwhereitbelievesdoingsoisinourandour stockholdersbestinterests,regardlessof its deductibility. •2023ProxyStatement 69