ServiceNow has extended the contract of CEO and Chairman Bill McDermott (photo) until the end of 2030. In doing so, the company is making a clear choice for continuity at the top, at a time when the company is preparing for a new phase of growth in which artificial intelligence and security are playing an increasingly important role.
Documents filed with regulators show that McDermott’s amended employment agreement will take effect on January 1, 2026, and commits him to ServiceNow for at least five additional years. During that period, depending on decisions made by the board of directors, he may remain active as CEO, co-CEO, executive chairman, or non-executive chairman.
McDermott led ServiceNow to significant growth
McDermott joined ServiceNow in 2019 after a long career at SAP, where he ultimately served as CEO. Since his move, he has seen ServiceNow grow into one of the most important players in the field of digital workflows and cloud-based business software. Under his leadership, the focus has shifted increasingly toward automation, platform integration, and, more recently, AI-driven processes.
The contract extension is seen as a signal that ServiceNow wants to maintain stability in a period of rapid technological and organizational change. The enterprise software market is becoming more competitive, while customers are placing higher demands on scalability, security, and intelligence within business processes. By retaining the same CEO, ServiceNow wants to stay the course in its strategic choices.
Under the amended agreement, McDermott’s compensation will continue to be linked to performance relative to comparable executives in the industry. If his role changes in the future, for example to a chairmanship, the remuneration will be adjusted to the corresponding responsibilities. ServiceNow has also revised its agreements on severance packages, with additional protection in situations involving a takeover or change of control.
Parallel to the contract extension, ServiceNow announced a major step forward in cybersecurity with the announced acquisition of Armis, as Techzine previously reported. Although this transaction is strategically important, the timing particularly emphasizes the board’s confidence in McDermott’s ability to guide and integrate such complex processes within the broader business strategy.