PayPal Announces New Employee Inducement Grants

SAN JOSE, Calif., December 16, 2022 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) ("PayPal" or the "Company") today announced it has granted equity awards under its 2022 Inducement Equity Incentive Plan (the "Plan") to new employees who joined PayPal.

On December 15, 2022, PayPal granted the following equity awards to 256 non-executive employees as an inducement for them to accept employment, which equity awards relate to or represent the right to receive, in the aggregate, up to 165,606 shares of PayPal Holdings, Inc. common stock:

• 253 employees received service-based restricted stock unit ("RSU") awards relating to up to 164,979 shares in the aggregate, with one-third (1/3) of the shares subject to such RSU awards vesting on the first anniversary of the grant date and one-twelfth (1/12) of the shares subject to such RSU awards vesting on each quarterly vesting date thereafter; provided however that in the event the value of an RSU award is converted into 24 or fewer underlying shares, one-third (1/3) of the shares subject to the RSU award will vest on each of the 12, 15 and 27 month anniversaries of the grant date, in each case conditioned upon each employee's continued employment on the vesting date(s).
• 3 employees received service-based, cash-settled restricted stock unit ("CSU") awards relating to up to 627 shares in the aggregate, with one-third (1/3) of the CSUs subject to such CSU awards vesting on the first anniversary of the grant date and one-twelfth (1/12) of the CSUs subject to such CSU awards vesting on each quarterly vesting date thereafter; provided however that in the event the value of a CSU award is converted into 24 or fewer CSUs, one-third (1/3) of the CSUs subject to the CSU award will vest on each of the 12, 15 and 27 month anniversaries of the grant date, in each case conditioned upon each employee's continued employment on the vesting date(s).

The inducement grants were approved by PayPal's Compensation Committee of the Board of Directors, as required by Nasdaq Rule 5635(c)(4), and were granted as a material inducement to employment in accordance with Nasdaq Rule 5635(c)(4).

About PayPal

PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering more than 430 million consumers and merchants in more than 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com.