ServiceNow exec exercises RSUs, withholds shares for tax
ServiceNow, Inc. Chief People & AI Enablement Officer Jacqueline P. Canney reported routine equity compensation activity involving restricted stock units.
Rhea-AI Filing Summary
ServiceNow, Inc. Chief People & AI Enablement Officer Jacqueline P. Canney reported routine equity compensation activity involving restricted stock units. On May 7, 2026, she exercised RSUs to acquire 2,630 shares of common stock and had 1,455 shares withheld to cover federal and state tax obligations, as permitted under Rule 16b-3.
Each restricted stock unit represents a right to receive one share of ServiceNow common stock. After these transactions, she directly owned 30,706 shares of common stock. The RSUs vest over time based on a detailed schedule tied to her continued service with the company.
Positive
- None.
Negative
- None.
Insider Trade Summary
2,630 shares exercised/converted
Exercise
3 txns
Insider
Canney Jacqueline P
Role
Chief People & AI Enblmt. Off.
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units | 2,630 | $0.00 | $0.00 |
| Exercise | Common Stock | 2,630 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 1,455 | $93.59 | $136K |
Holdings After Transaction:
Restricted Stock Units — 5,265 contracts (Direct);
Common Stock — 30,706 shares (Direct)
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. 3.33% of the shares subject to the restricted stock units vested on each of May 7, 2024, and August 7, 2024, 3.34% of the shares subject to the restricted stock units vested on November 7, 2024, and the remaining 90% of the shares subject to the restricted stock units began vesting quarterly on February 7, 2025, and subject to the reporting person's continued service to the Issuer on each vesting date.
Key Figures
Shares withheld for taxes: 1,455 shares
Tax withholding price: $93.59/share
RSUs exercised into common stock: 2,630 shares
+2 more
5 metrics
Shares withheld for taxes
1,455 shares
Common stock withheld at $93.59 per share on May 7, 2026
Tax withholding price
$93.59/share
Price used for 1,455-share tax-withholding disposition
RSUs exercised into common stock
2,630 shares
Common stock acquired via RSU conversion on May 7, 2026
Post-transaction holdings
30,706 shares
Directly owned ServiceNow common stock after transactions
RSU derivative position
5,265 RSUs
Restricted stock units remaining after the reported conversion
Key Terms
restricted stock units, Rule 16b-3, tax withholding obligations, contingent right
4 terms
restricted stock units financial
"3.33% of the shares subject to the restricted stock units vested on each of May 7, 2024"
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.
tax withholding obligations financial
"payment of federal and state tax withholding obligations of the Reporting Person resulting from the vesting of RSUs"
contingent right financial
"Each restricted stock unit represents a contingent right to receive one share of Issuer's common stock."
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transactions did ServiceNow (NOW) report for Jacqueline P. Canney?
ServiceNow reported that Jacqueline P. Canney exercised restricted stock units into 2,630 common shares and had 1,455 shares withheld for taxes. These were compensation-related events rather than open-market purchases or sales, and followed the company’s equity award and vesting structure.
What role do restricted stock units play in ServiceNow (NOW) executive compensation?
Restricted stock units grant executives the right to receive common shares over time as service-based vesting conditions are met. For ServiceNow, each RSU converts into one share, aligning leadership incentives with shareholders while spreading equity awards across multiple vesting dates.
How are taxes handled on Jacqueline P. Canney’s ServiceNow (NOW) RSU vesting?
Taxes on RSU vesting are handled by withholding shares. In this filing, 1,455 shares were relinquished in exchange for ServiceNow paying Jacqueline P. Canney’s federal and state tax withholding obligations, consistent with Rule 16b-3 treatment for equity compensation.
What is the vesting schedule for Jacqueline P. Canney’s ServiceNow (NOW) RSUs?
The RSUs vested 3.33% on May 7 and August 7, 2024, 3.34% on November 7, 2024, and the remaining 90% began vesting quarterly from February 7, 2025. Continued service with ServiceNow is required on each vesting date.
AI-generated analysis. How Rhea-AI works. Not financial advice.
