These Were ServiceNow’s Top 6 Highest Compensated Executives In 2020

Fiscal 2020 was a great year for ServiceNow, and a great year for the company’s top executives. Here are ServiceNow’s six highest compensated executives.

ServiceNow’s Most Highly-Compensated Executives

ServiceNow President and CEO Bill McDermott has been on the job for about one and a half years, with much of that time heading the company during the COVID-19 coronavirus pandemic. Despite the pandemic, McDermott oversaw a company that saw strong growth during the year ended Dec. 31, with total revenue of $4.52 billion, up 31 percent over last year led by 32 percent growth in subscription revenue to $4.29 billion.

It was also a good year for McDermott, who in 2020 received compensation worth over $25 million, according to a ServiceNow proxy statement.

McDermott was one of ServiceNow’s most highly compensated executives in 2020 for whom compensation was reported. Of the six, three, including McDermott, have been with ServiceNow for less than two years, one has left the company, one has been there for several years but this year became a named executive officer, leaving only one who has been on the list of most highly compensated executives for several years.

Here’s a breakdown of the fiscal 2020 compensation of six ServiceNow executives, reported in ServiceNow’s 2020 proxy statement as filed with the U.S. Securities and Exchange Commission.

Bill McDermott, President, CEO

Bill McDermott became president and CEO of ServiceNow on Nov. 18, 2019, after serving nine years as CEO of SAP and spending 17 years at Xerox, at which he was a division president and corporate officer.

McDermott received a base salary of $1 million in 2020, up significantly from the $128,846 he earned in the last couple months of 2019 after he started at the company. McDermott also received stock awards worth $18.41 million, down slightly from the $19.68 million he received in 2019.

He also received non-equity incentive plan compensation of $1.78 million, along with other compensation of $3.93 million, for total compensation of $25.12 million. Included in the “other” category is $3.90 million in cash payments to make up for a payment that “his prior employer refused to make as compensation for certain non-competition undertakings,” as well as $31,850 for reimbursement of expenses for legal or other advisors incurred in the review and finalization of his employment agreement, according to the ServiceNow proxy.

In total, he received 2020 compensation of $25.12 million, which was down from the $41.68 million he received in 2019. That 2019 compensation included option awards of $20.13 million. However, those options will be paid out over the next five years if the company’s share price meets certain levels.

According to the ServiceNow proxy, McDermott’s total 2020 compensation of $25.12 million is 120 times the $208,925 total 2020 compensation of the company’s median employee, who was determined to be a senior product manager in its product and engineering department and based in the U.S.

Gina Mastantuono, CFO

Mastantuono is a relative newcomer to ServiceNow, having started on Jan. 8, 2020, after a nearly seven-year run at distributor Ingram Micro where she left as CFO.

Because of her start date, Mastantuono in 2020 received $539,776 of her base salary of $550,000. She also received stock awards worth $15.65 million, non-equity incentive plan compensation of $640,903, and other compensation of $438,000, which included $436,000 in relocation expense reimbursements and $2,000 in 401(k) matching contributions. Mastantuono’s total compensation for 2020 was $17.27 million.

Chirantan “CJ” Desai, Chief Product and Engineering Officer

Desai has been at ServiceNow since December 2016 when he left storage vendor EMC after a three-plus-year run as president of that company’s emerging technologies division. That was just a few months after EMC was acquired by Dell Technologies.

For 2020, Desai received a salary of $620,833, which was up slightly from the $600,000 he received in 2019. He also received stock awards of $10.93 million, up from $9.42 million; non-equity incentive plan compensation of $742,500, up from $590,464; and other compensation of $2,000, down from $10,232. That $2,000 represented 401(k) matching contributions.

In total, Desai received compensation of $12.30 million in 2020, up from the $10.62 million he received in 2019.

Kevin Haverty, Chief Revenue Officer

Haverty is a nine-plus-year veteran of ServiceNow, but only became chief revenue officer in early 2018 and a named executive officer in 2019.

For 2020, Haverty received a salary of $520,833, stock awards of $9.15 million, non-equity incentive plan compensation of $623,700, and $2,000 in 401(k) matching contributions.

For the year, Haverty’s total compensation reached $10.23 million.

Russell Elmer, General Counsel

Elmer joined ServiceNow as general counsel in November 2018 after spending just over two years as general counsel of Lending Club. He became a named executive officer in 2020.

Elmer in 2020 received a salary of $462,500, stock awards worth $5.47 million, non-equity incentive plan compensation of $423,225, and other compensation worth $13,504. That latter figure included relocation expense reimbursements of $11,504 along with $2,000 in 401(k) matching contributions.

Total 2020 compensation for Elmer was $6.36 million.

David L. Schneider, President Emeritus and Former President of Global Customer Operations

Schneider spent over nine and a half years at ServiceNow and was president of global customer operations until July 2020, when he became president emeritus and was no longer a named executive officer. He left ServiceNow in January to become a general partner at Coatue Management.

Schneider had a 2020 salary of $591,667, up from $550,000 in 2019. He also received stock awards of $9.78 million, up from $9.42 million; non-equity incentive plan compensation of $712,800, up from $541,258; and $2,000 in 401(k) matching contributions.

Total compensation for Schneider in 2020 was $11.09 million.