Form 4: PayPal Director Enrique Lores Acquires Shares Through Deferred Compensation Plan

Director Enrique Lores acquired 1,944 shares of PayPal stock on January 2, 2025, through the company's deferred compensation plan.

Summary

• Enrique Lores, a director at PayPal Holdings, Inc., acquired 1,944 shares of common stock on January 2, 2025.
• The shares were awarded as part of the company's director compensation policy, in lieu of annual retainer fees.
• The number of shares was calculated by dividing the retainer fees by the company's closing stock price on the award date, rounded up to the nearest whole share.
• Mr. Lores has elected to defer receipt of this stock payment under the PayPal Holdings, Inc. Deferred Compensation Plan.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed positively as it aligns director interests with shareholders. There are no negative implications.

Positives

• The acquisition of shares by a director demonstrates alignment of interests with shareholders.
• The use of a deferred compensation plan can be tax-efficient for the director.

Management Comments

• The reporting person has elected to receive common stock in lieu of the annual retainer fees payable for services on the Company's Board of Directors and any committees thereof.
• The reporting person has elected to defer receipt of this stock payment award under the PayPal Holdings, Inc. Deferred Compensation Plan, as amended and restated.

Industry Context

This type of stock award is a common practice for compensating board members in publicly traded companies, aligning their interests with those of shareholders.

Comparison to Industry Standards

• Many publicly traded companies, such as Visa (V) and Mastercard (MA), use similar stock-based compensation plans for their directors.
• The practice of deferring stock awards is also common, allowing directors to manage their tax liabilities and align their long-term interests with the company's performance.
• The number of shares awarded is dependent on the company's stock price and the value of the retainer fees, which can vary across companies and industries.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's performance.
• The transaction has no direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

PayPal, Director, Stock Acquisition, Deferred Compensation, Enrique Lores, PYPL, Share Ownership, Board of Directors, Compensation