Investors of global payment giant PayPal Holdings (PYPL) have agreed to a new equity plan and confirmed key governance decisions. The plan replaces the 2015 program and introduces updated share allocation terms for future awards. Shareholders have also appointed new directors to serve until the 2027 annual meeting.
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PayPal Approves New Equity Plan and Share Authorization
PayPal shareholders approved a new 2026 Equity Incentive Award Plan during the company’s 2026 Annual Meeting of Stockholders on Tuesday. The plan updates the 2015 program for future stock awards and approves up to 39.1 million shares of common stock, along with up to 44.6 million rollover shares tied to expired or terminated awards after May 19, 2026.
Investors also elected all 11 director nominees to serve until the 2027 annual meeting, with each receiving at least 96.6% of votes cast. In addition, executive compensation was approved on an advisory basis, with 90.2% of shareholders voting in favor of the package.
PricewaterhouseCoopers LLP (PwC), a global firm that provides audit and review services, was approved as PayPal’s independent auditor for 2026. The plan received 91.2% shareholder approval.
Meanwhile, two shareholder proposals failed to pass. “Policy on Provision of Services in Conflict Zones” received only 11.2% support, while “Reduce Threshold to Call Special Meeting of Stockholders” gained just 41.1% support.
PayPal Announces Executive Departure and Leadership Transition
PayPal announced that Diego Scotti, Executive Vice President and General Manager of the Consumer Group, will step down from his role. His departure will take effect on June 2, 2026, after a separation and release deal signed with the payment firm. Under the agreement, Scotti will still receive severance benefits in line with PayPal’s standard policy for job cuts without cause.
Prior to the recent leadership change, PayPal had been achieving new milestones. The payment firm has partnered with Claude chatbot creator Anthropic to offer AI training programs, aiming to help 25 million people and businesses by 2030.
PayPal has also reached a $30 million settlement with the U.S. Department of Justice (DOJ), ending the probe without admitting any wrongdoing. Meanwhile, investor Michael Burry, founder of Scion Asset Management, has raised his stake in PayPal, showing continued interest in the stock.
Is PYPL a Buy, Sell, or Hold?
According to analysts tracked on TipRanks, PayPal (PYPL) is rated a Hold. The stock has a 12-month average price target of $48.71, implying about 9.84% upside from current levels. This outlook reflects a cautious yet slightly positive view, as analysts await clearer growth signals. For more information, investors can track PYPL ratings, price targets, and updates on the TipRanks Stocks Comparison Center.
