Textron 2021 Proxy Statement

TEXTRON 2021 PROXY STATEMENT 37 2018–2020 Per formance Share Unit Payouts 2018–2020 Units Name (1) Position Units Granted Units Paid Grant Date Value Payout Value Scott C. Donnelly CEO 88,582 61,817 $ 5,159,016 $2,995,652 Frank T. Connor CFO 25,676 17,918 $1,495,370 $ 868,306 E. Robert Lupone General Counsel 11,383 7,944 $ 662,946 $ 384,966 Julie G. Duffy EVP, HR 6,419 4,479 $ 373,843 $ 217,052 2018–2020 Value As shown in the table above, the payout values of the 2018–2020 awards were significantly lower than the grant date values of the awards despite the Company’s three-year average performance against operating metrics of 82.1%. Because the Company’s TSR performance was at the 25th percentile of the 2018 performance peer group, the Committee decided to reduce the units earned by 15%, after taking into account the unevenly distributed impact COVID-19 had on the performance peer group companies and each of their TSR performance because of the different industries in which the Company and the peer companies operate. As a result, the value of the PSUs at settlement was 58.1% of their grant date target value. The chart below shows in greater detail our CEO’s 2018–2020 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 modifier, to realized value (final payout value), reflecting the change in Textron’s stock price during the performance period. CEO’s 2018–2020 PSU Award Value decrease of 16.8% 100.0% Grant Date Award Value 69.8% Value After Realized Value Value After Performance Adjustment $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 58.1% 82.1% 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 at the time of vesting or exercise. For the value realized by the executives upon the vesting or exercise of these awards, see Option Exercises and Stock Vested in Fiscal 2020 on page 45. Scott C. Donnelly The table below shows the PSU awards granted in 2018 and the cash payout received by each executive in terms of both units and value.