PayPal Announces New Employee Inducement Grants

SAN JOSE, Calif., February 17, 2023 /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 February 15, 2023, PayPal granted the following equity awards to 419 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 240,210 shares of PayPal Holdings, Inc. common stock:

• 399 employees received service-based restricted stock unit ("RSU") awards relating to up to 239,267 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).
• 20 employees received service-based, cash-settled restricted stock unit ("CSU") awards relating to up to 943 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 hundreds of millions of consumers and merchants in more than 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com.