2019 Proxy Statement

32 TEXTRON 2019 PROXY STATEMENT (1) Because the Company’s TSR performance was below the median of the 2016 performance peer group, the Committee exercised its negative discretion and applied the TSR modi¿er to reduce the units paid by an additional 27 after adjusting for operating performance and considering other mitigating factors. (2) The value of the ¿nal payout was higher than the value of the original award due to the Company’s operating performance and the increase in Textron’s stock price from 2016 to 201 . Ms. Duffy’s 2016 201 PSU award is not reÀected in the preceding chart because it was granted while she served in her previous role and, consistent with the terms of grants made to other non executive of¿cers, was not subject to the TSR modi¿er. The amount paid is reÀected in the Option Exercises and Stock 9ested in Fiscal 201 table on page 0. The chart below shows our CEO’s 2016 201 cycle PSU award from grant date value, as adjusted by the Company’s performance against the goals set by the Committee and as adjusted for the TSR modi¿er, to realized value (¿nal payout value), reÀecting the increase in Textron’s stock price during the performance period. Restricted Stock Units and Stock Options In addition to PSUs, the Company’s long term incentive compensation program consists of RSUs and stock options. The ultimate value of these awards to the executives, upon the vesting of RSUs or the exercise of stock options, is directly based upon Textron’s stock price. For the value realized by the executives upon the vesting or exercise of these awards, see Option Exercises and Stock 9ested in Fiscal 201 on page 0. CEO’s 2016-2018 PSU Award Value ReÁects performance adMustment, TSR modiÀer and stock price increase of 36% 100.0% Grant Date Award Value 78.2% Value After TSR ModiÀer 106.3% Realized Value 107.1% Value After Performance AdMustment $6,000,000 $5,000,000 $ ,000,000 $ ,000,000 $2,000,000 $1,000,000 $0 Performance Share Units and Value Awarded and Earned for Period Name Position Original Award Units Earned (1) Original Award Final Payout (2) Scott C. Donnelly CEO 119,501 9 , 29 $ ,122,7 5 , 2,75 Frank T. Connor CFO , 20 26,911 1,1 7, 90 1,262, 95 E. Robert Lupone General Counsel 15,57 12,175 5 7,269 571,129 2016-2018 Value 2016-2018 Units