Form 4: PayPal EVP Scotti Reports RSU Vesting and New Grant

PayPal's EVP, GM Consumer Group, Diego Scotti, reported the vesting of 27,610 restricted stock units, the withholding of 15,269 shares for taxes, and a new grant of 158,536 restricted stock units.

Summary

• Diego Scotti, EVP, GM Consumer Group at PayPal Holdings, Inc., reported transactions on March 1, 2026.
• 27,610 restricted stock units (RSUs) from a March 1, 2025 grant vested and converted into common stock.
• 15,269 shares of common stock were withheld to cover tax obligations related to the RSU vesting.
• Scotti received a new grant of 158,536 restricted stock units on March 1, 2026.
• The new RSU grant vests 1/3 on its one-year anniversary and 1/12 quarterly thereafter until the third anniversary.
• Following these transactions, Scotti beneficially owns 34,289 shares of common stock.
• He also beneficially owns 55,218 restricted stock units from a prior grant and 158,536 restricted stock units from the new grant.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, representing routine executive compensation and equity management. It does not indicate any significant positive or negative operational or financial developments for PayPal.

Positives

• EVP Diego Scotti received a new grant of 158,536 restricted stock units, aligning his interests with long-term shareholder value.
• The vesting of 27,610 restricted stock units indicates continued compensation for executive performance.

Negatives

• 15,269 shares of common stock were disposed of to satisfy tax withholding obligations, reducing direct share ownership.

Future Outlook

The new restricted stock unit grant to EVP Diego Scotti on March 1, 2026, is subject to a three-year vesting schedule, with 1/3 vesting on the one-year anniversary of the grant date and 1/12 vesting on each quarterly anniversary thereafter until the third anniversary, indicating future share issuances tied to continued employment and performance.

Industry Context

StockSavvy.ai notes that executive compensation, particularly through equity awards like Restricted Stock Units (RSUs), is a standard practice across the technology and financial services industries. These grants are designed to align executive incentives with long-term company performance and shareholder interests, a common strategy employed by PayPal's peers to retain key talent.

Stakeholder Impact

• Shareholders: The new RSU grant represents potential future dilution upon vesting, but also aligns executive incentives with long-term shareholder value. Tax withholdings reduce the executive's direct share count.
• Employees: Reflects standard executive compensation practices, which can influence broader compensation strategies within the company.

Next Steps

• Remaining restricted stock units from the March 1, 2025 grant will continue to vest quarterly until March 1, 2028.
• The newly granted 158,536 restricted stock units will begin vesting on March 1, 2027 (one-year anniversary) and continue quarterly until March 1, 2029.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation activities, specifically the vesting of restricted stock units and a new grant, along with tax-related share withholdings. Such transactions are standard and generally do not provide new material information that would warrant a change in investment recommendation for PayPal. The filing confirms ongoing executive alignment through equity but offers no insights into operational performance or strategic shifts.

Keywords

PayPal, PYPL, Diego Scotti, Form 4, Restricted Stock Units, RSU, Executive Compensation, Insider Transaction, Stock Vesting, Tax Withholding