ServiceNow CEO Bill McDermott Exercises RSUs, Sells 2,236 Shares

What Happened Bill McDermott, Chairman & CEO of ServiceNow (NOW), had 4,160 restricted stock units (RSUs) convert into common shares on Aug 17, 2026. To cover federal and state tax withholding, 2,236 of those shares were surrendered at an effective price of $117.70 per share, totaling $263,177. Net to McDermott from the vesting event was 1,924 shares retained.

Key Details

• Transaction date: 2026-08-17 (reported in Form 4 filed 2026-08-19). Filing appears timely.
• Action: RSU conversion (derivative exercise/conversion, code M) of 4,160 RSUs into shares; tax withholding (code F) of 2,236 shares at $117.70 each = $263,177.
• Acquisition price: $0.00 per share for the conversion (typical for RSU vesting); withholding executed by surrendering shares.
• Net change: +1,924 shares added to McDermott’s holdings from this vesting event (4,160 vested − 2,236 withheld). The filing does not state his total post-transaction holdings.
• Footnotes: F1 confirms shares were relinquished to cover tax withholding under Rule 16b-3; F2/F3 explain each RSU equals one share and describe the vesting schedule (quarterly 1/16th, first vesting May 17, 2023, subject to continued service).

Context This was a routine RSU vesting with shares withheld for taxes (a cashless withholding), not an open-market sale or a separate discretionary sale. Such withholding is a common administrative step and does not by itself indicate an investment view.