PayPal expands stock plan by 15 million shares

PayPal Holdings, Inc. (NASDAQ:PYPL), a prominent financial services company with a market capitalization of $71.6 billion, announced an expansion of its equity incentive plan following approval from its shareholders at the Annual Meeting held on June 5, 2025. The amendment and restatement of the PayPal Holdings, Inc. 2015 Equity Incentive Award Plan, now referred to as the "Amended Equity Plan," will increase the number of shares available for issuance by an additional 15 million shares. According to InvestingPro data, management has been actively buying back shares, demonstrating their commitment to shareholder value.

The expansion of the stock plan was one of several items voted on by shareholders. The meeting’s outcomes also included the election of 11 director nominees to serve until the 2026 Annual Meeting of Stockholders, approval of executive compensation on an advisory basis, ratification of PricewaterhouseCoopers LLP as the company’s independent auditor for 2025, and the rejection of two stockholder proposals—one calling for a report on charitable giving and another to reduce the threshold to call a special meeting of stockholders. Currently trading at $73.54 with a P/E ratio of 16.38, InvestingPro analysis suggests the stock is trading below its Fair Value.

The approval of the Amended Equity Plan aims to provide PayPal with the flexibility to continue to incentivize and retain employees through stock-based compensation. The full text of the Amended Equity Plan is filed as Exhibit 10.1 to the Current Report on Form 8-K.

This information is based on a press release statement and filings with the Securities and Exchange Commission.

In other recent news, PayPal Holdings Inc . has introduced a new physical credit card, expanding its PayPal Credit service to be used in-store wherever Mastercard (NYSE:MA) is accepted. Issued by Synchrony Financial (NYSE:SYF), this card offers a six-month promotional period with no-interest financing on travel-related expenses like flights and hotels. This move is part of PayPal’s broader strategy to offer diverse payment solutions, accommodating different customer preferences. Meanwhile, Truist Securities has downgraded PayPal’s stock to a Sell rating, setting a price target of $68 due to concerns about competitive pressures and economic factors affecting growth prospects. The analysts at Truist Securities project a compound annual growth rate of 2% for PayPal from 2024 to 2027, below the consensus estimate of 5%. They also highlighted competitive challenges in PayPal’s branded checkout business and potential risks associated with its increased focus on lending amid current economic conditions. Additionally, Venmo, a subsidiary of PayPal, has expanded its commerce capabilities, introducing new rewards for Venmo Debit Mastercard users, with significant growth in commerce usage reported. Selfbook, another company in the hospitality sector, has partnered with PayPal to enhance hotel bookings by integrating PayPal and Venmo as payment options, aiming to streamline the booking process using AI technology.

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