DOCSLIB.ORG

2021 Notice of Annual Meeting of Stockholders and Proxy Statement

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
2021 Notice of Annual Meeting of Stockholders and Proxy Statement 2021 Notice of Annual Meeting of Stockholders and Proxy Statement 2021 Annual Meeting of Stockholders and Proxy Statement Statement Proxy and Stockholders of Meeting Annual 2021 Our Two-sided Platform Serves Merchants and Consumers MERCHANTS CONSUMERS $ Power all aspects of digital Provide solutions to help people £ checkout online, on mobile, manage and move money both and in store domestically and internationally Offer access to seamless credit Offer credit services that are solutions to enable growth accessible and cost effective Help identify fraud and Facilitate simple, secure improve risk management payments across devices Offer tools and insights to attract Deliver flexibility with payment new customers and increase sales options globally, across platforms and merchants Innovating at Scale in 2020 Stimulus Check Crypto Buy, Enhanced Direct Deposit Buy Now, Pay Later Hold, Sell Giving Platform 04 . 20 08 . 20 10 . 20 11 . 20 04 . 20 05 . 20 10 . 20 11 . 20 Paycheck QR Code Checkout Venmo Xoom Direct Transfers Protection Program Credit Card to Bank Accounts and Participation Debit Cards Message from Our President and CEO Dear Colleagues, Customers, Partners and Stockholders: 2020 was a uniquely challenging and transformative year. The COVID-19 pandemic, which has already had far-reaching effects on almost every aspect of our lives and communities, will continue to impact millions across the globe for years to come. Underserved communities have been hit the hardest, and we all need to do our part to ensure an inclusive recovery. At PayPal, our mission to democratize financial services and advance the financial health of families, businesses and communities has never been more important. We are proud of the ways we have continued to live our values and make a meaningful difference for our customers and communities, while driving long-term, sustainable growth for our stockholders. Since the onset of the pandemic, our top priority has been the health and well-being of our employees. We worked quickly to transition nearly 100% of our global workforce to work remotely in a safe and effective manner. We introduced new benefits and resources, and we pledged to continue paying employees unable to work because of the impacts of COVID-19. For our consumers and merchants, we provided relief from the pressures of the pandemic, mobilized to become one of the first non-bank lenders approved to provide access to Paycheck Protection Program (“PPP”) loans to small businesses in need, and enabled consumers to receive stimulus payments through their Venmo and PayPal accounts. Last year also made clear that everyone has a responsibility to take action in support of racial equity and social justice. The pandemic has had a disproportionate effect on communities of color – as demonstrated by case numbers and mortality rates, as well as the devastating economic impact on Black-owned small businesses in particular. In alignment with our mission, vision and values, we made a $535 million commitment to do our part to address the economic underpinnings of these inequities and to help close the racial wealth gap. This will be a sustained area of focus for us. We will continue to fulfill our core value of inclusion by demonstrating our unwavering belief that Black lives matter, and by furthering our work to build more just communities and economies. The pandemic has accelerated the global movement toward digital payments. It has unleashed a digital wave of change across almost all industries, advancing digital transformation by at least three to five years. The shift away from cash, already well underway before the pandemic began, has become even more apparent. This transition opens new opportunities to upgrade the current financial system to one that is fundamentally more affordable, efficient and inclusive. This shift to the digital economy, combined with the quick and effective efforts of our teams to respond to the moment, and the strong foundation of customer and public trust in our platform and products, led to PayPal’s strongest year of performance. We delivered a record 73 million net new active accounts, reached 29 million merchant accounts on our platform and processed a record 15.4 billion payment transactions. We achieved new heights in product innovation, launching the Venmo credit card and driving wide adoption of our QR codes and Global Pay Later solutions, like Pay in 4. And we expanded our digital wallet capabilities by enabling U.S. customers to buy, sell and hold select cryptocurrencies through their PayPal account. The Future of Digital Payments We have made great strides since becoming a publicly-traded company, but the coming years hold even greater promise. We have solidified our role as an essential company in the financial lives of our customers and we will continue to build on that foundation. The opportunity ahead is enormous, and PayPal is well-positioned to play a leading role in driving the future of digital payments and commerce. We see five key trends emerging that will change how people and businesses connect, and we believe we are uniquely positioned to drive these trends going forward: Digital-First The new digital-first paradigm will change the way people live, work, play and pay. The lines between physical and digital are disappearing, and this will fundamentally change how business is conducted. Digital will be the primary method of customer engagement. Home Delivery/Store Pickup Retail strategy is shifting away from physical storefronts to optimizing for home delivery and store pick-up. Consumers are prioritizing safety and convenience. Digital Wallets Digital wallets will create a connected ecosystem and a simple way to enable, pay and track transactions across all touchpoints. As separate apps become one, platforms can more effectively personalize recommendations and safeguard data. E-commerce As consumers move away from in-store purchasing, commerce will be done in new spaces. There will be more ways to meet consumers where they are – including tailored offers, universal checkout, and increased importance of platforms like Honey that will enable merchants to tap into demand. Digital Currencies Finally, a new cashless financial system is emerging. Digital currencies will increasingly be developed by central banks and adopted by consumers. This technology can help address fundamental problems in the current system, but will also require deep public-private collaboration. We are building a digital wallet for consumers and commerce platform for merchants, designed to directly address and help shape these trends, while keeping our customers and their security at the forefront. Our digital wallet will integrate payments, financial services, shopping tools and digital IDs, and will work seamlessly both online and offline. And our PayPal Commerce Platform will enable merchants of all sizes to embrace a digital-first strategy. For our small business customers, who are so essential to our local communities, it is imperative that they not only survive the transition to the digital economy, but thrive in it. We cannot – and we will not – leave them behind. We aim to serve as a strategic partner to our merchants to help enable them to adapt to this new context, and to contribute to the development of a more inclusive economy for our customers and communities. Driving Responsible Innovation We are working to lead a responsible transition to the digital economy, but we also know that no single company, organization or institution can do it all alone. It will require cooperation and collective action among all stakeholders, above and beyond the current level of engagement. The world has changed and our challenges and opportunities have changed as well. We need a greater level of collaboration between the public and private sectors to serve our shared constituencies, achieve systemic impact and build new frameworks for the future. Corporations should increasingly consider and commit to a multi-stakeholder approach, focusing on delivering shared value across all key stakeholders, including employees, stockholders, customers, local communities and those in the public sector. We take a transparent and collaborative approach to our regulatory relationships and share a commitment to protecting our customers, their data and our platform. We will continue to focus on building and sustaining trusted relationships at all levels to scale our innovation in a responsible manner. We always strive to meet or exceed the letter and spirit of the laws of the countries in which we do business through continuous focus and significant investment in our compliance programs, platforms and practices. We have invested in building a world-class compliance and risk management team and compliance structure that enables us to work closely with regulators and governments. Since we became an independent public company, this function has grown to almost 4,000 people, enabling us to take a leading role in creating meaningful partnerships between the private, public and non- profit sectors. We have developed expertise in detecting bad actors on our platform and have become a notable leader in the fight against financial crime. This investment is a key differentiator for PayPal and will help ensure we identify and advance areas of mutual interest for our shared constituencies. Fulfilling Our Mission, Vision and Values For many years, conventional wisdom posed a false choice: that a business could either be profitable or do good in the world. Today, it is clear that purpose is not just a “nice to have,” but is essential to long-term, sustainable business performance. For PayPal, purpose is integral to our strategy and our competitive advantage. The expectation that businesses drive positive social and environmental change is greater than ever, and this past year has demonstrated the critical role the private sector has to play in building and leading an inclusive recovery. At PayPal, everything we do is driven by our mission, vision and values. In 2019, we launched our Employee Financial Wellness initiative to help strengthen the financial security of our employees.
Load more

Recommended publications
  • Sternbusiness
    NON-PROFIT ORG. NEW YORK UNIVERSITY U.S. POSTAGE STERNBUSINESS THE ALUMNI MAGAZINE OF NYU STERN SCHOOL OF BUSINESS / FALL 2017 DEAN HENRY A CHAMPION 0F CHANGE A LOOK AT HOW NYU STERN IS INNOVATING TO DEVELOP FUTURE TALENT cover_UG.indd 117 10/16/17 8:23 AM AFTER EIGHT GRATIFYING YEARS, the moment approaches when I will step down from being Dean and return to full-time research and teaching as a NYU Stern professor. This, therefore, is my finalStern Business message to you in my current A MESSAGE capacity. It’s been an honor to serve the School and to get to know personally so many of you, the best colleagues and alumni in the world. When I arrived at Stern in 2010, times were both challenging and inspira- tional. Despite the still-fragile state of the global economic recovery, hope and FROM THE DEAN determined energy characterized the mood here. I knew I had joined a team of creative, brilliant people ready to apply the power of ideas and harness the potential of individuals to turn challenges into opportunities for business and society. Since then, we have indeed led the way in making sure that business education stays relevant to our changing times, expanding our role as an elite institution with enviable strengths in finance by tapping the innovative spirit for which we are known. You’ll see recent evidence of those efforts on display throughout this issue (starting on page 24). We recently launched two new one-year MBA programs— the Fashion & Luxury MBA (p. 27) and the Tech MBA (p.
    [Show full text]
  • 2018 Annual Report 2019 Annual Meeting of Stockholders and Proxy
    2019 Annual Meeting of Stockholders and Proxy Statement 2018 Annual Report 2019 Annual Meeting of Stockholders and Proxy Statement & 2018 Annual Report MESSAGE FROM OUR PRESIDENT AND CEO Dear Stockholders, Customers, Colleagues, and Partners: This past year was another transformative year for PayPal. Our world is changing rapidly, and the political and economic landscape remains dynamic. The continuing digitization of cash and the global proliferation of mobile technologies are redefining the face of commerce, and creating new opportunities to connect, to share, to shop, and to sell. And yet too many of our global citizens are being left behind. Despite the inherent advantages of the digital economy, it is clear that the benefits of technology are not being equally distributed across society. While we are making demonstrable progress in many areas, approximately 1.7 billion people are unbanked and even more are Proxy Statement underserved by the traditional financial system. Numbers like these make it clear that PayPal’s mission is more relevant than ever. We must innovate and use technology to democratize financial services to help as many people and businesses as possible join and thrive in the digital economy. This is the unifying vision behind everything we do. Our opportunity to help the underserved, and drive the next era of commerce is immense. Consumers around the world demand and deserve more convenient, accessible, and affordable financial services. Merchants of all shapes, sizes, and industries are looking for ways to get closer to their customers, maximize the opportunities presented by digital commerce, and compete successfully in this new era.
    [Show full text]
  • February 11, 2019 Speaker Nancy Pelosi Leader Charles Schumer
    February 11, 2019 Speaker Nancy Pelosi Leader Charles Schumer United States House of Representatives United States Senate Washington, D.C. 20515 Washington, D.C. 20510 Leader Mitch McConnell Leader Kevin McCarthy United States Senate United States House of Representatives Washington, D.C. 20510 Washington, D.C. 20515 Dear Speaker Pelosi, Leader McConnell, Leader Schumer, and Leader McCarthy, The Coalition for the American Dream is an organization of business leaders representing every major sector of the U.S. economy pursuing a bipartisan, permanent legislative solution for Dreamers. Our membership includes more than 100 employers and trade associations spanning a variety of U.S. industries, from retail to manufacturing to tech, that represent more than half of American private sector workers. We write to urge the new Congress to act immediately and pass a bipartisan, permanent legislative solution to enable Dreamers who are currently living, working, and contributing to our communities to continue doing so. With the re-opening of the federal government and the presumptive restart of immigration and border security negotiations, now is the time for Congress to pass a law to provide Dreamers the certainty they need. These are our friends, neighbors, and coworkers, and they should not have to wait for court cases to be decided to determine their fate when Congress can act now. Studies by economists across the ideological spectrum have determined that if Congress fails to act, our economy could lose $350 billion in GDP, and the federal government could lose $90 billion in tax revenue. Thus, continued delay or inaction will cause significant negative economic and social impact to businesses and hundreds of thousands of deserving young people across the country.
    [Show full text]
  • Combination-Annual-Report
    MESSAGE FROM OUR PRESIDENT AND CEO Dear Colleagues, Customers, Partners and Stockholders: Five years ago, we set out to create a new PayPal. What was once a checkout button has been transformed into a financial services and commerce platform driven by a mission to help merchants and consumers join and thrive in the global economy. We have a bold vision for the future of commerce with the capabilities and resources to execute on our ambitious goals. As a company and as a community, the past year was a period of meaningful progress in advancing our mission and becoming a truly great company. I’m pleased to share with you some of PayPal’s 2019 accomplishments. Investing in Our Employees PayPal President and CEO Dan Schulman visited employees in Omaha, Nebraska to discuss the company’s recently implemented programs to support the financial health of its employees. Our employees are one of our company’s greatest competitive advantages. It was the highlight of my year to announce that PayPal would launch a comprehensive program to help our employees feel more financially secure. We raised wages where appropriate, lowered the cost of healthcare for some employees by an average of 58%, enhanced our benefits and gave every employee an ownership stake in PayPal by granting equity awards – regardless of level, location or tenure. We also are providing employees with new tools and resources to help guide their long-term financial planning and decisions. These steps were important to ensure that everyone at PayPal feels the same sense of accountability, responsibility and passion for serving our customers.
    [Show full text]