ServiceNow (NOW) CEO William McDermott Receives RSU Shares

What Happened
William R. McDermott, Chairman & CEO of ServiceNow, had 8,765 restricted stock units (RSUs) convert into common shares on August 7, 2026. The gross value of those vested shares at the withholding price ($124.88) was about $1,094,573. Of the 8,765 shares, 4,712 were surrendered to the company to cover federal and state tax withholding obligations (proceeds = $588,435). The net shares delivered to McDermott were 4,053 (8,765 − 4,712).

Key Details

• Transaction date: August 7, 2026 (Form 4 filed August 11, 2026 — timely within the 2-business-day rule).
• What happened: RSUs converted to 8,765 shares (derivative exercise/conversion). 4,712 shares were withheld to satisfy tax withholding (code F).
• Prices & values: withholding price reported at $124.88 per share; tax withholding = $588,435; gross value of vested shares ≈ $1,094,573; net value of retained shares ≈ $506,139.
• Shares owned after transaction: not disclosed in the provided filing. Net shares received from this vesting = 4,053.
• Footnotes: F1 indicates shares were relinquished to cover tax withholding; F2 confirms each RSU equals one share; F3 describes the multi-year vesting schedule (small percentages vested in 2024 with the remaining 90% vesting quarterly beginning Feb 7, 2025), and vesting is conditioned on continued service.

Context
This was a routine RSU vesting and tax-withholding transaction (not an open-market sale or purchase). Converting RSUs into shares and surrendering a portion to cover taxes is a common administrative step and does not, by itself, imply a buy/sell decision about the company’s stock. For derivative transactions: these RSUs were simply converted into shares (reported as an exercise/conversion).