ServiceNow (NYSE: NOW) logs RSU vesting and ESPP share buy
Rhea-AI Filing Summary
ServiceNow, Inc. (NOW) reported insider equity activity by Pres. & Chief Legal Officer Hossein Nowbar on August 14, 2026. Restricted stock units covering 2,857 and 2,209 shares of common stock vested and were converted into common shares. In connection with these RSU vestings, a total of 1,995 shares of common stock were withheld at $124 per share to satisfy federal and state tax withholding obligations. A footnote also states that 211.8644 shares were acquired earlier under ServiceNow’s Employee Stock Purchase Plan on July 31, 2026.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 3,071 shares
Net Buy
6 txns
Insider
Nowbar Hossein
Role
Pres. & Chief Legal Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units F3, F4 | 2,857 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F3, F5 | 2,209 | $0.00 | $0.00 |
| Exercise | Common Stock F1 | 2,857 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F2 | 1,125 | $124.00 | $140K |
| Exercise | Common Stock | 2,209 | $0.00 | $0.00 |
| Tax Withholding | Common Stock F2 | 870 | $124.00 | $108K |
Holdings After Transaction:
Restricted Stock Units — 47,807 shares (Direct);
Common Stock — 8,513.8644 shares (Direct)
Footnotes (5)
- F1. Includes 211.8644 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. The restricted stock units vest as to 1/12th of the total shares quarterly, with the first vesting having occurred on February 13, 2026, 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 shares vested (grant 1): 2,857 shares
RSU shares vested (grant 2): 2,209 shares
Total derivative shares exercised: 5,066 shares
+4 more
7 metrics
RSU shares vested (grant 1)
2,857 shares
Restricted stock units converting into common stock on August 14, 2026
RSU shares vested (grant 2)
2,209 shares
Restricted stock units converting into common stock on August 14, 2026
Total derivative shares exercised
5,066 shares
Exercise or conversion of derivative securities reported in transactionSummary
Shares withheld for taxes (lot 1)
1,125 shares
Code F disposition at $124 per share to cover tax withholding
Shares withheld for taxes (lot 2)
870 shares
Code F disposition at $124 per share to cover tax withholding
Tax withholding price
$124 per share
Applied to 1,125 and 870 shares delivered for tax obligations
ESPP shares acquired
211.8644 shares
Shares acquired under Employee Stock Purchase Plan on July 31, 2026
Key Terms
Restricted Stock Units, Employee Stock Purchase Plan, Rule 16b-3, tax withholding obligations
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.
Employee Stock Purchase Plan financial
"Includes 211.8644 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.
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.
tax withholding obligations financial
"Issuer's payment of federal and state tax withholding obligations of the Reporting Person"
FAQ
What insider transactions did ServiceNow (NOW) report for Hossein Nowbar on August 14, 2026?
Hossein Nowbar reported RSU vesting into 2,857 and 2,209 shares of ServiceNow common stock on August 14, 2026. In connection with these vestings, 1,995 shares were withheld to cover tax obligations under Rule 16b-3.
How many restricted stock units vested for the ServiceNow (NOW) executive in this filing?
Restricted stock units corresponding to 2,857 shares and 2,209 shares of ServiceNow common stock vested. Each restricted stock unit represents a contingent right to receive one share of ServiceNow common stock, subject to the disclosed quarterly vesting schedules.
What do the vesting schedules look like for the ServiceNow (NOW) RSUs in this Form 4?
One RSU grant vests 1/12 of the total shares quarterly starting February 13, 2026. Another vests in 12 equal quarterly installments beginning May 15, 2026, both conditioned on continued service to ServiceNow.
Does the Form 4 for ServiceNow (NOW) indicate open-market buying or selling by the executive?
The filing reports RSU vesting and tax withholding share dispositions, but no open-market purchases or sales. Code M reflects derivative conversions, and code F reflects shares withheld to pay tax obligations on those vestings.
AI-generated analysis. How Rhea-AI works. Not financial advice.
