Just days after revealing he would not renew his contract with SAP, outgoing CEO Bill McDermott is set to step into a new role as president and CEO of ServiceNow.
ServiceNow has announced that McDermott will join its ranks by the end of the year, succeeding outgoing CEO John Donahoe, who is stepping down from ServiceNow to become president and CEO of Nike in January 2020, replacing current chief Mark Parker in the role.
Since joining ServiceNow in April 2017, Donahoe has led strong customer expansion and overseen consistent annual revenue growth of greater than 30 percent each quarter. During his tenure, the company’s market capitalisation has more than tripled.
“John Donahoe has been an exceptional leader for ServiceNow, championing a purpose-driven culture, strong customer focus and product innovation, and achieving outstanding shareholder value,” lead independent director of ServiceNow’s board of directors Jeff Miller said.
“The board extends its deep appreciation and thanks on behalf of our employees, partners and customers. We wish him much success as he embarks on his next role.”
ServiceNow said in a statement that, in an effort to ensure a smooth transition, Donahoe will remain ServiceNow’s CEO through the transition period and will retain his seat on the company’s board of directors for the remainder of his current term, ending in June 2020.
“ServiceNow’s board is thrilled to have Bill McDermott join the company,” Miller said. “His global experience and proven track record will provide for a smooth transition and continued strong leadership.
“Bill will further enhance ServiceNow’s momentum and reputation as a digital workflows leader committed to customer success, and as a preferred strategic partner enabling enterprise digital transformation,” he said.
News of McDermott’s appointment comes as ServiceNow publishes its preliminary third quarter 2019 financial results, with the company touting subscription revenues of US$835 million, representing 35 per cent year-over-year growth.