ServiceNow (NYSE: NOW) CEO has 2,236 shares withheld for taxes after RSU vest
Rhea-AI Filing Summary
ServiceNow, Inc. (NOW) reported equity compensation activity for Chairman & CEO William R. McDermott. On August 17, 2026, 4,160 Restricted Stock Units converted into 4,160 shares of common stock, reflecting scheduled vesting where each RSU represents one share. Of these, 2,236 shares were relinquished at $117.70 per share to satisfy federal and state tax withholding obligations in accordance with Rule 16b-3, and the remaining shares increased his direct holdings. After this event, McDermott held 8,320 shares of common stock directly and 24,405 shares indirectly through a trust, indicating a combination of direct and trust-based ownership.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 1,924 shares
Net Buy
4 txns
Insider
McDermott William R
Role
Chairman & CEO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units F2, F3 | 4,160 | $0.00 | $0.00 |
| Exercise | Common Stock | 4,160 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F1 | 2,236 | $117.70 | $263K |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Restricted Stock Units — 8,320 shares (Direct);
Common Stock — 184,199 shares (Direct);
Common Stock — 24,405 shares (Indirect, by Trust)
Footnotes (3)
- 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 1/16th 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.
Key Figures
RSUs Converted: 4,160 shares
Shares Withheld for Taxes: 2,236 shares
Withholding Price: $117.70 per share
+4 more
7 metrics
RSUs Converted
4,160 shares
Restricted Stock Units converted into common stock on August 17, 2026
Shares Withheld for Taxes
2,236 shares
Shares relinquished to satisfy tax withholding obligations on vesting
Withholding Price
$117.70 per share
Per-share value for shares withheld for tax obligations
Direct Holdings After Transaction
8,320 shares
Common stock directly owned by William R. McDermott after the reported transactions
Indirect Holdings by Trust
24,405 shares
Common stock held indirectly by trust for William R. McDermott
RSU Vesting Fraction
1/16th
Portion of total RSU grant vesting quarterly, starting May 17, 2023
First Vesting Date
May 17, 2023
Date of first quarterly vesting for the restricted stock units
Key Terms
Restricted Stock Units, Rule 16b-3, indirect, by Trust
4 terms
Restricted Stock Units financial
"Each restricted stock unit represents a contingent right to receive one share"
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.
indirect financial
"Common Stock holdings reported as indirect ownership by Trust"
by Trust financial
"total_shares_following_transaction reported as indirect ownership by Trust"
FAQ
What equity transactions did ServiceNow (NOW) CEO William R. McDermott report on August 17, 2026?
On August 17, 2026, William R. McDermott had 4,160 RSUs convert into 4,160 common shares. He then relinquished 2,236 shares to cover tax withholding, with the balance adding to his direct holdings.
How many RSUs did William R. McDermott convert into ServiceNow (NOW) common stock?
William R. McDermott converted 4,160 Restricted Stock Units into 4,160 shares of ServiceNow common stock. Each restricted stock unit represents a contingent right to receive one share of the company’s common stock.
AI-generated analysis. How Rhea-AI works. Not financial advice.
