2018 Proxy Statement

53 TEXTRON 2018 PROXY STATEMENT SHAREHOLDER PROPOSAL REGARDING DIRECTOR TENURE LIMIT 0U :LOOLDP 6WHLQHU ZLWK DQ DGGUHVV F R .RPORVV\ /DZ 3$ 6KHULGDQ 6W 6XLWH - +ROO\ZRRG )/ RZQHU RI DW OHDVW 500 shares of our common stock, has given notice of his designation of John Chevedden as his proxy to introduce the following resolution at the annual meeting. The shareholder proposal and supporting statement appear as received by us. Following the shareholder proposal is our response. Proposal 5—Director Tenure Limit 6KDUHKROGHUV UHTXHVW RXU %RDUG RI 'LUHFWRUV WR DGRSW DV SROLF\ D \HDU WHQXUH OLPLW IRU VHUYLFH RQ WKH %RDUG RI 'LUHFWRUV 7KH %RDUG RI 'LUHFWRUV ZRXOG KDYH GLVFUHWLRQ WR GHWHUPLQH WKH GHWDLOV RI WKH GH¿QLWLRQ RI WKH \HDU OLPLW ZLWK DFFRPSDQ\LQJ MXVWL¿FDWLRQ VXFK DV DOORZLQJ XS WR \HDUV DQG GD\V VHUYLFH 7KLV ZRXOG LQFOXGH D SURYLVLRQ WKDW PDQDJHPHQW ZRXOG KDYH WKH GLVFUHWLRQ WR implement an orderly transition to this requirement should there be a temporary deviation in meeting this requirement. /RQJ WHQXUH FDQ LPSDLU WKH LQGHSHQGHQFH RI D GLUHFWRU QR PDWWHU KRZ ZHOO TXDOL¿HG $QG LQGHSHQGHQFH LV DQ DOO LPSRUWDQW TXDOL¿FDWLRQ IRU D 'LUHFWRU $ GLUHFWRU ZKR ODFNV LQGHSHQGHQFH FDQQRW SURWHFW WKH LQWHUHVW RI VKDUHKROGHUV $W 7H[WURQ WKH IROORZLQJ directors had excessive tenure: 3DXO *DJQp \HDUV /DZUHQFH )LVK \HDUV &KDUOHV 3RZHOO \HDUV .DWKOHHQ %DGHU \HDUV Please vote to enhance the independence of our directors: Director Tenure Limit – Proposal 5 Our Response to the Shareholder Proposal The Board of Directors recommends a vote AGAINST this shareholder proposal. The Board has carefully considered this shareholder proposal and believes that the proposal is contrary to the best interests RI 7H[WURQ DQG LWV VKDUHKROGHUV 7KH %RDUG EHOLHYHV WKDW WHUP OLPLWV DUH QRW DSSURSULDWH EHFDXVH WKH\ FRXOG SUHYHQW TXDOL¿HG experienced and effective directors from serving on the Board. In addition, the Board believes that term limits are unnecessary due to the Board’s robust nomination process, recent board succession actions, emphasis on director independence, and other corporate governance practices. To assess the composition of the Board and the future requirements for Board members, the Nominating and Corporate *RYHUQDQFH &RPPLWWHH DQQXDOO\ UHYLHZV WKH UHVXOWV RI WKH VHOI HYDOXDWLRQ FRQGXFWHG E\ WKH %RDUG DQG HDFK RI LWV WKUHH FRPPLWWHHV WKH &RPSDQ\¶V EXVLQHVV VWUDWHJ\ DQG WKH VNLOOV TXDOL¿FDWLRQV DQG H[SHULHQFH QHHGHG RQ WKH %RDUG WR VXSSRUW WKDW VWUDWHJ\ DQG WKH PL[ RI VNLOOV TXDOL¿FDWLRQV DQG H[SHULHQFH RI RXU H[LVWLQJ GLUHFWRUV :LWK WZR UHFHQW UHWLUHPHQWV /RUG 3RZHOO and Mr. Hancock) and one upcoming retirement (Mr. Evans) due to our Board’s mandatory retirement age, our Board has engaged in a careful and thorough board refreshment process over the past two years which resulted in the addition of three exceptional new members to our Board. Ms. Zuber, Mr. Heath and Ms. James each bring to our Board a variety of backgrounds, skills and experience that will help support our Company and our Board. The Board believes that its robust Board succession, HYDOXDWLRQ DQG QRPLQDWLRQ SURFHVV LV VXSHULRU WR WKH LPSRVLWLRQ RI LQÀH[LEOH %RDUG TXDOL¿FDWLRQ FULWHULD VXFK DV WHUP OLPLWV