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ServiceNow Extends CEO McDermott Agreement, Updates Severance Policy

Story Highlights
  • ServiceNow extended Bill McDermott’s leadership commitment through at least 2030, with role flexibility.
  • The firm overhauled its CEO severance and equity protections to formalize payouts across exit scenarios.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
ServiceNow Extends CEO McDermott Agreement, Updates Severance Policy

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ServiceNow ( (NOW) ) has shared an announcement.

On December 23, 2025, ServiceNow amended the employment agreement of Chairman and CEO William R. McDermott, effective January 1, 2026, to secure his service with the company through at least December 31, 2030, in roles that may include CEO, co-CEO, Executive Chairman or Non-Executive Chairman, with compensation aligned to company performance and the scope of his responsibilities. The company also revised its Executive Severance Policy, effective January 1, 2026, enhancing and clarifying severance, equity vesting and benefit entitlements for the CEO in scenarios including qualifying terminations with or without a change in control, retirement after age 65, death, and disability, signaling an emphasis on leadership continuity and structured executive transition planning that could influence governance stability and long-term strategic execution for shareholders and other stakeholders.

The most recent analyst rating on (NOW) stock is a Buy with a $255.00 price target. To see the full list of analyst forecasts on ServiceNow stock, see the NOW Stock Forecast page.

Spark’s Take on NOW Stock

According to Spark, TipRanks’ AI Analyst, NOW is a Outperform.

ServiceNow’s strong financial performance and positive earnings call sentiment are significant strengths, driving the overall score. However, high valuation concerns and technical indicators suggesting potential bearish momentum moderate the score. The stock split is a positive corporate event, but its impact is limited compared to core financial and market factors.

To see Spark’s full report on NOW stock, click here.

More about ServiceNow

ServiceNow, Inc. is a U.S.-based enterprise software company that provides cloud-based platforms and solutions for digital workflow automation, helping organizations manage IT service, operations, customer service and employee workflows, primarily targeting large and mid-size enterprises undergoing digital transformation.

Average Trading Volume: 8,011,208

Technical Sentiment Signal: Sell

Current Market Cap: $161.3B

See more insights into NOW stock on TipRanks’ Stock Analysis page.

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