ServiceNow executive exercises 5,435 RSUs
ServiceNow executive Paul Fipps, President, Global Customer Ops, reported multiple equity transactions on August 7, 2026.
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Form Type
4
Rhea-AI Filing Summary
ServiceNow executive Paul Fipps, President, Global Customer Ops, reported multiple equity transactions on August 7, 2026. He exercised or converted 5,435 restricted stock units into an equal number of shares of common stock, including performance-based awards tied to 2024 criteria. In connection with these vestings, 2,172 shares of common stock were relinquished at $124.88 per share for payment of federal and state tax withholding obligations. Footnotes describe various RSU vesting schedules extending through February 7, 2027 and note an additional 25.3022 shares acquired under the Employee Stock Purchase Plan.
Insider Trade Summary
5,435 shares exercised/converted
Exercise
12 txns
Insider
Fipps Paul
Role
President, Global Customer Ops
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units F3, F4, F5 | 4,120 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F3, F6, F5 | 910 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F3, F7 | 330 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F3, F8 | 75 | $0.00 | $0.00 |
| Exercise | Common Stock F1 | 4,120 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F2 | 1,646 | $124.88 | $206K |
| Exercise | Common Stock | 910 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F2 | 364 | $124.88 | $45K |
| Exercise | Common Stock | 330 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F2 | 132 | $124.88 | $16K |
| Exercise | Common Stock | 75 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F2 | 30 | $124.88 | $4K |
Holdings After Transaction:
Restricted Stock Units — 7,575 contracts (Direct);
Common Stock — 15,360.1822 shares (Direct)
Footnotes (8)
- F1. Includes 25.3022 shares acquired under the Issuer's Employee Stock Purchase Plan on July 31, 2026.
- F2. 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.
- F3. Each restricted stock unit represents a contingent right to receive one share of Issuer's common stock.
- F4. 30% of the shares subject to the restricted stock units vested on February 7, 2025, 15% of the shares subject to the restricted stock units vested on each of August 7, 2025 and February 7, 2026, 20% of the shares subject to the restricted stock units vested on August 7, 2026, and 20% of the shares subject to the restricted stock units will vest on February 7, 2027, subject to the reporting person's continued service to the Issuer on each vesting date.
- F5. Acquired upon achievement of certain performance criteria pursuant to the performance-based restricted stock units granted February 15, 2024 under the Issuer's 2021 Equity Incentive Plan. The performance period for the restricted stock units was January 1, 2024 until December 31, 2024, with achievement of the applicable performance criteria subject to determination by the Issuer's Compensation Committee. This determination was obtained on February 4, 2025.
- F6. 30% of the shares subject to the restricted stock units vested on February 7, 2025, 15% of the shares subject to the restricted stock units vested on August 7, 2025 and February 7, 2026, 20% of the shares subject to the restricted stock units vested on August 7, 2026, and 20% of the shares subject to the restricted stock units will vest on February 7, 2027, subject to the reporting person's continued service to the Issuer on each vesting date.
- F7. The restricted stock units vest as to 1/16th of the total shares quarterly, with the first vesting having occurred on May 7, 2024, and subject to the Reporting Person's continued service to the Issuer on each vesting date.
- F8. The restricted stock units vest as to 1/16th of the total shares quarterly, with the first vesting having occurred on November 7, 2024, and subject to the Reporting Person's continued service to the Issuer on each vesting date.
Key Figures
RSUs converted: 5,435 restricted stock units
Shares for tax withholding: 2,172 shares
Tax withholding price: $124.88 per share
+2 more
5 metrics
RSUs converted
5,435 restricted stock units
Total derivative exercises reported on August 7, 2026
Shares for tax withholding
2,172 shares
Common shares relinquished to cover tax obligations from RSU vesting
Tax withholding price
$124.88 per share
Price applied to common shares used for tax withholding
ESPP shares acquired
25.3022 shares
Shares acquired under Employee Stock Purchase Plan on July 31, 2026
RSU vesting end date
February 7, 2027
Final scheduled vesting date for certain RSU grants, subject to continued service
Key Terms
Restricted Stock Units, Rule 16b-3, Employee Stock Purchase Plan, performance-based restricted stock units
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
"shares relinquished ... 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.
Employee Stock Purchase Plan financial
"shares acquired under the Issuer's Employee Stock Purchase Plan"
An employee stock purchase plan is a company program that lets workers buy shares through small payroll deductions, often at a discount to the market price and after a set offering period. Think of it like a workplace savings plan that turns into ownership: it encourages employees to share in the company’s success and can create predictable buying or selling of stock that investors watch because it affects supply, demand and employee incentives.
performance-based restricted stock units financial
"Acquired upon achievement of certain performance criteria pursuant to the performance-based restricted stock units"
Performance-based restricted stock units are a type of employee equity award that converts into company shares only if predefined financial or operational targets are met over a set period. Think of it like a bonus check that becomes stock only when specific goals are hit; it ties pay to results, aligning managers’ incentives with shareholders. Investors care because these awards affect future share count, executive incentives, and signal how management’s success will be measured and rewarded.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did ServiceNow (NOW) executive Paul Fipps report in this Form 4?
Paul Fipps reported exercising 5,435 restricted stock units into common shares and relinquishing 2,172 shares to cover tax withholding obligations tied to RSU vesting on August 7, 2026.
How many ServiceNow (NOW) RSUs did Paul Fipps have vest or convert?
On August 7, 2026, Paul Fipps had 5,435 restricted stock units convert into the same number of ServiceNow common shares, including tranches from time-based and performance-based RSU grants.
What are the key vesting dates for Paul Fipps’ ServiceNow (NOW) RSUs?
Footnotes state that certain RSUs vested on February 7, 2025, August 7, 2025, February 7, 2026, and August 7, 2026, with remaining portions scheduled to vest on February 7, 2027, subject to continued service.
Were performance-based ServiceNow (NOW) RSUs involved in this Form 4?
Yes. Some RSUs were performance-based units granted February 15, 2024, with a performance period from January 1 to December 31, 2024, and achievement determined by the Compensation Committee on February 4, 2025.
AI-generated analysis. How Rhea-AI works. Not financial advice.
