ServiceNow (NYSE: NOW) exec vests 640 shares, surrenders 256 for taxes
Rhea-AI Filing Summary
ServiceNow, Inc. (NOW) reported that officer Paul Fipps, President, Global Customer Ops, had restricted stock units vest on August 17, 2026. Two RSU tranches covering 340 and 300 underlying shares were exercised into an aggregate 640 shares of common stock. Of these, 136 and 120 shares of common stock (total 256 shares) were relinquished at $117.70 per share to satisfy federal and state tax withholding obligations in connection with the RSU vesting, in accordance with Rule 16b-3. The remaining vested shares were retained as directly owned common stock.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 384 shares
Net Buy
6 txns
Insider
Fipps Paul
Role
President, Global Customer Ops
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units F2, F3 | 340 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F2, F4 | 300 | $0.00 | $0.00 |
| Exercise | Common Stock | 340 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F1 | 136 | $117.70 | $16K |
| Exercise | Common Stock | 300 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F1 | 120 | $117.70 | $14K |
Holdings After Transaction:
Restricted Stock Units — 1,880 shares (Direct);
Common Stock — 20,339.1822 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 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.
- F4. 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.
Key Figures
RSU-derived common shares: 640 shares
RSU tranche 1: 340 shares
RSU tranche 2: 300 shares
+4 more
7 metrics
RSU-derived common shares
640 shares
Shares of ServiceNow common stock issued upon RSU vesting on August 17, 2026
RSU tranche 1
340 shares
Underlying shares for one RSU tranche converted to common stock on August 17, 2026
RSU tranche 2
300 shares
Underlying shares for second RSU tranche converted to common stock on August 17, 2026
Tax-withholding shares
256 shares
Common shares relinquished to cover federal and state tax withholding on RSU vesting
Tax-withholding price
$117.70 per share
Valuation used for shares delivered for tax withholding obligations
Code F dispositions
2 transactions
Tax-withholding dispositions of common stock reported under transaction code F
Derivative exercises
2 transactions; 640 shares
RSU exercises/conversions reported under transaction code M
Key Terms
Restricted Stock Units, contingent right, Rule 16b-3, tax withholding obligations, +1 more
5 terms
Restricted Stock Units financial
"The reporting person held Restricted Stock Units that converted into common stock."
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.
contingent right financial
"Each restricted stock unit represents a contingent right to receive one share."
Rule 16b-3 regulatory
"Shares were relinquished for 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.
tax withholding obligations financial
"Shares were used to satisfy federal and state tax withholding obligations."
vesting financial
"The restricted stock units vest as to 1/16th of the total shares quarterly."
Vesting is the process by which you earn full ownership of something, like company stock or a retirement benefit, over time. It’s like earning the right to keep a gift piece by piece the longer you stay with a company, making sure employees stay committed before they receive all the benefits.
FAQ
What did ServiceNow (NOW) disclose about Paul Fipps’s RSU vesting on August 17, 2026?
ServiceNow (NOW) disclosed that Paul Fipps had 640 shares of common stock issued upon the vesting of restricted stock units, with a portion of those shares withheld to cover tax obligations.
How many ServiceNow (NOW) RSUs vested for Paul Fipps in this Form 4 filing?
Two tranches of restricted stock units vested for Paul Fipps, corresponding to 340 and 300 underlying shares of ServiceNow common stock, resulting in a total of 640 newly issued shares.
AI-generated analysis. How Rhea-AI works. Not financial advice.
