Form 4: PayPal Director Enrique Lores Receives Stock Award and Defers Receipt

Director Enrique Lores received a fully vested stock payment award from PayPal Holdings, Inc. and elected to defer receipt under the company's Deferred Compensation Plan.

Summary

• On May 22, 2024, Enrique Lores, a director of PayPal Holdings, Inc., received a fully vested stock payment award of 4,422 shares of common stock.
• This award was granted pursuant to PayPal's Independent Director Compensation Policy, following the company's annual meeting of stockholders.
• The number of shares was calculated by dividing $275,000 by the company's closing stock price on the date of grant, rounded up to the nearest whole share.
• Lores elected to defer receipt of this stock payment award under the PayPal Holdings, Inc. Deferred Compensation Plan, as amended and restated.
• Following the transaction, Lores beneficially owns 20,190 shares of PayPal common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine compensation practice. It's a neutral event with a slightly positive sentiment due to the director's continued alignment with the company's success.

Positives

• The stock award reflects PayPal's commitment to compensating its independent directors.
• The Deferred Compensation Plan allows directors to defer income, potentially optimizing their tax situation.

Future Outlook

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

Stock awards are a common form of compensation for directors of publicly traded companies, aligning their interests with those of shareholders. Deferred compensation plans are also frequently used to provide tax benefits to executives and directors.

Comparison to Industry Standards

• Director compensation packages vary across the industry, but stock awards are a standard component.
• Companies like Block (formerly Square), Adyen, and Global Payments also utilize stock-based compensation for their board members.
• The specific value of the award ($275,000 in this case) would need to be benchmarked against peer companies to determine if it is above, below, or in line with industry averages.

Stakeholder Impact

• Shareholders are indirectly impacted as director compensation aligns interests with company performance.
• The director benefits from the stock award and deferred compensation plan.

Key Dates