ServiceNow has amended the employment agreement for Chairman and CEO William R. McDermott, securing his service to the company through at least December 31, 2030. The amendment, effective January 1, 2026, provides flexibility for his future role. Concurrently, the company updated its Executive Severance Policy, outlining new severance and benefit terms for the CEO.
Key Details
- Service Extension: Mr. McDermott has agreed to remain in service to ServiceNow through at least December 31, 2030. His role may include CEO, co-CEO, Executive Chairman, or Non-Executive Chairman, at the Board's discretion.
- Amended Severance Policy: Effective January 1, 2026, the CEO's severance upon a Qualifying Termination within 12 months of a Change in Control includes a lump sum equal to 2x (base salary + target bonus), 24 months of COBRA benefits, and 100% acceleration of unvested RSU and PRSU equity awards.
- Standard Severance: For a Qualifying Termination not connected to a Change in Control, benefits include a lump sum equal to 1x base salary, the actual bonus for the fiscal year, 12 months of COBRA benefits, and 18 months of accelerated RSU and PRSU vesting.