NOW Form 4: McBride vests RSUs and relinquishes shares to cover taxes
Rhea-AI Filing Summary
ServiceNow Principal Accounting Officer Kevin Thomas McBride reported multiple equity transactions on 08/07/2025. Portions of performance-based and service-based restricted stock units vested, producing share acquisitions and automatic relinquishments to satisfy federal and state tax withholding obligations. The filing shows share-for-tax-withholding transactions executed at $874.12 per share and notes that 8 shares were acquired under the company ESPP on 07/31/2025. Following the reported transactions the Form 4 lists direct beneficial ownership of common stock reaching 5,093 shares.
The filing also details vesting schedules: certain performance RSUs granted 02/15/2024 vested 30% on 02/07/2025 and 15% on 08/07/2025 with remaining tranches through 02/07/2027, while other RSUs vest quarterly (1/16th) beginning 05/07/2024. The relinquishments are described as made in accordance with Rule 16b-3.
Positive
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Negative
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Insights
TL;DR: Routine RSU vesting and sell-to-cover tax-withholding; transaction sizes are modest and not a material corporate event.
The Form 4 documents multiple RSU vesting events on 08/07/2025 that resulted in the acquisition of shares and contemporaneous relinquishments to satisfy tax obligations at $874.12 per share. Reported acquired amounts include tranches of 309, 199, and 335 shares; reported relinquishments include 147, 95, and 159 shares. The filing lists direct beneficial ownership up to 5,093 shares after these transactions. From a financial perspective these are compensation-related movements rather than open-market directional trades, so investor impact is neutral.
TL;DR: Disclosures and mechanics align with standard equity compensation practices and Rule 16b-3; governance implications are minimal.
The filing explicitly states that certain shares were relinquished to cover tax withholding in accordance with Rule 16b-3, and it discloses vesting schedules for both performance-based and time-based restricted stock units. The performance RSUs (granted 02/15/2024) had specified percentages vesting on set dates through 02/07/2027, and other RSUs vest quarterly (1/16th). The transactions appear to follow required disclosure protocols and internal compensation plan terms, indicating routine governance compliance rather than a material governance event.