ServiceNow (NYSE: NOW) PAO gets 975 shares, surrenders 338 for taxes
Rhea-AI Filing Summary
ServiceNow, Inc. (NOW) reported that Principal Accounting Officer Danielle Fontaine had restricted stock units vest into common stock and related tax-withholding transactions on August 14, 2026. Two RSU tranches covering 235 and 740 units converted into an equal number of common shares. To cover federal and state tax withholding obligations upon these vestings, a total of 338 common shares were withheld at $124.00 per share under Rule 16b-3. The RSUs vest in 16 equal quarterly installments starting on May 15, 2025 for one grant and May 15, 2026 for another, subject to continued service.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 637 shares
Net Buy
6 txns
Insider
Fontaine Danielle
Role
Principal Accounting Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units F2, F3 | 235 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F2, F4 | 740 | $0.00 | $0.00 |
| Exercise | Common Stock | 235 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F1 | 82 | $124.00 | $10K |
| Exercise | Common Stock | 740 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F1 | 256 | $124.00 | $32K |
Holdings After Transaction:
Restricted Stock Units — 12,712 shares (Direct);
Common Stock — 10,570 shares (Direct)
Footnotes (4)
- F1. Represents shares relinquished by the Reporting Person in exchange for the Issuer's payment of federal and state tax withholding obligations of the Reporting Person resulting from the vesting of RSUs, in accordance with Rule 16b-3.
- F2. Each restricted stock unit represents a contingent right to receive one share of Issuer's common stock.
- F3. The restricted stock units vest in 16 equal quarterly installments, with the first vesting having occurred on May 15, 2025, and subject to the reporting person's continued service to the Issuer on each vesting date.
- F4. The restricted stock units vest in 16 equal quarterly installments, with the first vesting having occurred on May 15, 2026, and subject to the Reporting Person's continued service to the Issuer on each vesting date.
Key Figures
RSUs Converted (Tranche 1): 235 shares
RSUs Converted (Tranche 2): 740 shares
Shares Withheld for Taxes (Tranche 1): 82 shares
+3 more
6 metrics
RSUs Converted (Tranche 1)
235 shares
Restricted stock units converted into common stock on August 14, 2026
RSUs Converted (Tranche 2)
740 shares
Restricted stock units converted into common stock on August 14, 2026
Shares Withheld for Taxes (Tranche 1)
82 shares
Common shares relinquished to cover tax withholding at $124.00 per share
Shares Withheld for Taxes (Tranche 2)
256 shares
Common shares relinquished to cover tax withholding at $124.00 per share
Tax Withholding Price
$124.00 per share
Price used for shares delivered for tax withholding obligations
Total Shares Used for Tax Withholding
338 shares
Total common shares delivered or withheld for tax liabilities in code F transactions
Key Terms
Restricted Stock Units, Rule 16b-3, contingent right, tax withholding obligations
4 terms
Restricted Stock Units financial
"The restricted stock units vest in 16 equal quarterly installments"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
Rule 16b-3 regulatory
"in exchange for the Issuer's payment of federal and state tax withholding obligations"
Rule 16b-3 is a Securities and Exchange Commission regulation that exempts certain routine, pre-approved transactions by company insiders from automatic liability for short-term trading profits. It acts like a safe harbor: if an insider follows a formal plan or the board approves specific transactions in advance, profits from buying and selling company stock within six months are not automatically reclaimed. Investors care because the rule clarifies when insider trades are permissible and reduces uncertainty about potential clawbacks.
contingent right financial
"Each restricted stock unit represents a contingent right to receive one share"
tax withholding obligations financial
"payment of federal and state tax withholding obligations of the Reporting Person"
FAQ
What insider equity activity did ServiceNow (NOW) report for Danielle Fontaine on August 14, 2026?
On August 14, 2026, Danielle Fontaine had 235 and 740 restricted stock units convert into common stock. In connection with these vestings, a portion of the resulting shares was withheld to satisfy tax withholding obligations.
Were Danielle Fontaine’s ServiceNow (NOW) transactions open-market sales?
No, the filing shows no open-market purchases or sales. Shares were acquired through RSU vesting and a total of 338 shares were disposed of solely to satisfy tax withholding obligations under Rule 16b-3.
What is the vesting schedule of the RSUs reported for ServiceNow (NOW)?
The RSUs vest in 16 equal quarterly installments. One grant began vesting on May 15, 2025, and another began on May 15, 2026, each subject to the reporting person’s continued service with ServiceNow.
What does each restricted stock unit represent in this ServiceNow (NOW) Form 4?
Each restricted stock unit represents a contingent right to receive one share of ServiceNow common stock. Upon vesting, each RSU automatically converts into one share, as reflected in the reported exercises and share issuances.
AI-generated analysis. How Rhea-AI works. Not financial advice.
