ServiceNow executive sells 1,048 shares after RSU vest
ServiceNow, Inc. executive Paul Fipps, President of Global Customer Ops, reported a mix of stock option activity and a modest sale of common shares.
Rhea-AI Filing Summary
ServiceNow, Inc. executive Paul Fipps, President of Global Customer Ops, reported a mix of stock option activity and a modest sale of common shares. On May 15, 2026, he exercised derivative awards to acquire a total of 8,287 shares of common stock, while 3,311 shares were relinquished to cover federal and state tax withholding obligations linked to restricted stock unit vesting. On May 18, 2026, he executed an open‑market sale of 1,048 shares at $98.51 per share, carried out under a pre‑arranged Rule 10b5‑1 trading plan. Following these transactions, Fipps directly holds 12,071.88 shares of ServiceNow common stock.
Positive
- None.
Negative
- None.
Insider Trade Summary 10b5-1
Exercise and sale activity reported; no spread calculated
Exercise and Sale
16 txns
Insider
Fipps Paul
Role
President, Global Customer Ops
Sold
1,048 shs ($103K)
Approx. gross sale proceeds
$103K
Approx. exercise cost
$0.00
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock | 1,048 | $98.51 | $103K |
| Exercise | Restricted Stock Units | 340 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units | 300 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units | 940 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units | 1,105 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units | 5,602 | $0.00 | $0.00 |
| Exercise | Common Stock | 340 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 136 | $95.07 | $13K |
| Exercise | Common Stock | 300 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 120 | $95.07 | $11K |
| Exercise | Common Stock | 940 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 376 | $95.07 | $36K |
| Exercise | Common Stock | 1,105 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 442 | $95.07 | $42K |
| Exercise | Common Stock | 5,602 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 2,237 | $95.07 | $213K |
Holdings After Transaction:
Restricted Stock Units — 79,593 contracts (Direct);
Common Stock — 12,071.88 shares (Direct)
Footnotes (8)
- 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. The transactions reported on this Form 4 were effected pursuant to the Rule 10b5-1 trading plan adopted by the Reporting Person on November 19, 2025.
- F3. Each restricted stock unit represents a contingent right to receive one share of Issuer's common stock.
- F4. The restricted stock units vest as to 1/16th of the total shares quarterly, with the first vesting having occurred on May 17, 2023, and subject to the Reporting Person's continued service to the Issuer on each vesting date.
- F5. The restricted stock units vest as to 1/16th of the total shares quarterly, with the first vesting having occurred on November 17, 2023, and subject to the Reporting Person's continued service to the Issuer on each vesting date.
- F6. The restricted stock units vest as to 1/12th of the total shares quarterly, 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.
- F7. The restricted stock units vest as to 1/12th of the total shares quarterly, with the first vesting having occurred on August 15, 2025, and subject to the Reporting Person's continued service to the Issuer on each vesting date.
- F8. The restricted stock units vest in 12 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
Open-market sale: 1,048 shares at $98.51/share
Shares acquired via exercises: 8,287 shares
Tax-withholding shares: 3,311 shares
+3 more
6 metrics
Open-market sale
1,048 shares at $98.51/share
Common Stock sale on May 18, 2026
Shares acquired via exercises
8,287 shares
Derivative exercises on May 15, 2026
Tax-withholding shares
3,311 shares
Relinquished to cover RSU tax obligations
Direct holdings after transactions
12,071.88 shares
Common Stock held following reported trades
Net buy/sell shares
-1,048 shares
Net open-market direction across reported trades
Derivative transaction count
5 transactions
Restricted stock unit-related derivative entries
Key Terms
Rule 10b5-1 trading plan, restricted stock units, tax withholding obligations, contingent right, +1 more
5 terms
Rule 10b5-1 trading plan regulatory
"transactions were effected pursuant to the Rule 10b5-1 trading plan adopted by the Reporting Person"
A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.
restricted stock units financial
"resulting from the vesting of RSUs, in accordance with Rule 16b-3"
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.
tax withholding obligations financial
"Issuer's payment of federal and state tax withholding obligations of the Reporting Person"
contingent right financial
"Each restricted stock unit represents a contingent right to receive one share"
open-market sale financial
"transaction_action": "open-market sale""
An open-market sale is when a shareholder sells existing shares directly on a public exchange to any willing buyer, rather than through a private deal. Think of it like putting goods on a busy market stall where price is set by supply and demand; for investors it matters because such sales increase available supply, can put short-term downward pressure on the stock price, and signal changes in liquidity or investor confidence.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transactions did ServiceNow (NOW) executive Paul Fipps report?
Paul Fipps reported exercising equity awards and a small stock sale. He acquired 8,287 ServiceNow shares through derivative exercises, had 3,311 shares withheld for taxes, and sold 1,048 shares in an open-market transaction, all while remaining a significant shareholder.
Were Paul Fipps’ ServiceNow (NOW) stock sales made under a Rule 10b5-1 plan?
Yes, the filing states the transactions were effected under a Rule 10b5-1 trading plan. Such pre-arranged plans schedule trades in advance, helping separate routine portfolio management from discretionary market timing decisions by insiders like Paul Fipps.
What do the tax-withholding transactions mean in the ServiceNow (NOW) Form 4?
The tax-withholding entries represent shares relinquished to cover federal and state taxes from RSU vesting. Instead of paying cash, 3,311 ServiceNow shares were surrendered, a common mechanism that does not reflect open-market selling by the executive.
What equity awards did Paul Fipps exercise in ServiceNow (NOW) stock?
He exercised restricted stock unit-based derivative awards, acquiring 8,287 ServiceNow common shares. Each restricted stock unit converts into one share upon vesting, according to the filing’s description of the RSU terms and vesting schedules.
AI-generated analysis. How Rhea-AI works. Not financial advice.
