Two ServiceNow Execs out after Internal Policy Breach

ServiceNow's president has resigned from his post after internal investigations determined that he had violated the company's policies when his approach to hiring its public sector executive.

ServiceNow CEO Bill McDermott stated during the company's second-quarter earnings call that president and chief operating officer Chiratan "CJ" Desai would be stepping down from his role at the company.

ServiceNow's Bill McDermott

Desai and ServiceNow "came to a mutual agreement that Desai would resign from all positions with the company effective immediately," McDermott stated. The departure was due to an internal complaint detailed in a March filing regarding compliance issues related to a government contract. The company's board considered the matter alongside outside counsel and determined that the company's internal policies had been violated. Raj Iyer, the employee who had been hired by Desai, had already departed the company by the time of Desai's resignation.

Iyer was serving as senior vice president and head of global public sector for ServiceNow, starting in March 2023.

According to Bloomberg, Iyer was serving as the Army's chief information officer when ServiceNow scored a contract of up to $432 million with the Army.

ServiceNow believes that this was an "isolated incident" and that the executive team can cover for the loss of both men.

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ServiceNow's CJ Desai

"After nearly 8 years, 16 major platform releases, numerous new product launches, and AI innovation at a remarkable clip, I am saying goodbye to ServiceNow," Desai said in a Thursday LinkedIn post. The former ServiceNow executive did not mention the reason for his departure in his post but kept it vague.

Not everything was bad news for ServiceNow, however. McDermott also spoke about a number of other successful ventures, including several new million-dollar clients, a federal government customer spending $100 million over its engagement and the London Stock Exchange moving 15 siloed platforms and 14 lines of business to ServiceNow.