ServiceNow (NYSE: NOW) exec relinquishes 3,057 shares for taxes
Rhea-AI Filing Summary
ServiceNow, Inc. (NOW) reported that officer Paul Fipps had 7,652 shares of common stock acquired on August 14, 2026 through the vesting and settlement of restricted stock units, each RSU converting into one share. To cover associated federal and state tax withholding obligations, 3,057 shares of common stock were relinquished back to the issuer at $124.00 per share, in accordance with Rule 16b-3. The activity reflects compensation-related RSU vesting and related tax withholding rather than open‑market buying or selling.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 4,595 shares
Net Buy
9 txns
Insider
Fipps Paul
Role
President, Global Customer Ops
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units F2, F3 | 940 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F2, F4 | 1,110 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F2, F5 | 5,602 | $0.00 | $0.00 |
| Exercise | Common Stock | 940 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F1 | 376 | $124.00 | $47K |
| Exercise | Common Stock | 1,110 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F1 | 444 | $124.00 | $55K |
| Exercise | Common Stock | 5,602 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F1 | 2,237 | $124.00 | $277K |
Holdings After Transaction:
Restricted Stock Units — 69,421 shares (Direct);
Common Stock — 19,955.1822 shares (Direct)
Footnotes (5)
- 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 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.
- F4. 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.
- F5. 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
RSU-derived shares acquired: 7,652 shares
Shares relinquished for tax withholding: 3,057 shares
Tax withholding share price: $124.00 per share
+2 more
5 metrics
RSU-derived shares acquired
7,652 shares
Total exerciseShares from RSU conversions on August 14, 2026
Shares relinquished for tax withholding
3,057 shares
exercisePriceOrTaxLiabilityShares at RSU vesting on August 14, 2026
Tax withholding share price
$124.00 per share
Price applied to common stock relinquished for federal and state tax obligations
Single RSU-to-share ratio
1 RSU : 1 share
Each restricted stock unit represents one share of common stock
Quarterly vesting installments
12 installments
RSUs vest in 12 equal quarterly tranches, subject to continued service
Key Terms
Restricted Stock Units, Rule 16b-3, contingent right, tax withholding obligations
4 terms
Restricted Stock Units financial
"The restricted stock units vest as to 1/12th of the total shares quarterly"
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 ... in accordance with Rule 16b-3"
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 did ServiceNow (NOW) disclose about Paul Fipps’ stock transactions on August 14, 2026?
Paul Fipps reported 7,652 ServiceNow (NOW) shares acquired via RSU vesting and conversion into common stock. In the same event, he relinquished 3,057 shares back to the issuer to satisfy federal and state tax withholding obligations under Rule 16b-3.
Were Paul Fipps’ ServiceNow (NOW) transactions open-market buys or sells?
No. The Form 4 shows RSU vesting and related tax withholding, not open-market trades. RSUs converted into common stock, and a portion of those shares was relinquished to ServiceNow to cover tax liabilities, consistent with equity compensation mechanics.
What are the key vesting terms of Paul Fipps’ ServiceNow (NOW) RSUs?
The RSU grants vest in 12 quarterly installments, with first vesting dates noted as May 15, 2025, August 15, 2025, and May 15, 2026, respectively. Each installment requires Paul Fipps’ continued service with ServiceNow on the relevant vesting date.
AI-generated analysis. How Rhea-AI works. Not financial advice.
