TEXTRON 2025 PROXY STATEMENT 23 • In August, the U.S. Army announced approval of Milestone B for the FLRAA program, establishing it as a program of record and transitioning the program to the Engineering and Manufacturing Development phase ahead of the first prototype aircraft build. New commercial orders included the first order for the Bell 525 to Equinor, the Norwegian state energy company, which signed an agreement to purchase 10 Bell 525 aircraft. • Textron Systems delivered the 12th Ship-to-Shore Connector (SSC) craft to the U.S. Navy and received an award from Naval Sea Systems Command for the next production lot of nine SSC craft. The Navy also awarded Textron Systems a contract for Mine Sweeping Payload Delivery Systems to support the Navy’s Mine Countermeasure Mission package. This award allows Textron Systems’ Common Unmanned Surface Vehicle (CUSV) to complete mine sweeping missions semiautonomously and advance the CUSV system’s capabilities. • In the Industrial segment, Textron Specialized Vehicles’ Jacobsen products maintained the golf course in Paris for the Summer Games with its fleet of ELiTE electric mowers. This marked the first all-electric fleet in use at the Games and the first time an all-electric fleet was used to maintain an entire course. Kautex won new contracts with automotive OEM customers, successfully securing 10 contract awards for its hybrid electric fuel systems. • Pipistrel, within our Textron eAviation segment, was granted a light-sport aircraft airworthiness exemption by the FAA for its Velis Electro, which allows U.S. flight schools to use the lower-cost and more sustainable electric aircraft in their flight training programs. Overview of 2024 Executive Compensation Decisions and Results Key compensation decisions and results for 2024 include the following: • 2024 Base Salaries: The Organization and Compensation Committee (the “Committee”) increased base salaries for each of the named executive officers (“NEOs”). Mr. Donnelly received an increase of 4.4% while Mr. Connor, Mr. Lupone, and Ms. Duffy received increases of 4.3%, 4.4% and 7.1% respectively. • 2024 Target Incentive Compensation: Target annual and long-term incentive compensation for each of the NEOs increased only as a result of their base salary increases, except that the Committee increased Mr. Donnelly’s target long-term incentive compensation by 5.4% from $13 million to $13.7 million. • 2024 Long-Term Incentive Awards: Maintained the target value allocation of 50% PSUs, 25% stock options, and 25% RSUs. • 2024 Short-Term Incentive Results: The calculated payout for 2024 was 67.7% of target, which reflects below target performance on our profitability and cash flow metrics, while we performed at target on Environmental, Social, and Governance (ESG). • 2022-2024 Long-Term Incentive Results: The earned percentage for the 2022-2024 PSU award was 122.3% as performance on our return on invested capital and cumulative cash flow metrics were above target and the relative total shareholder return metric performed at just below target.
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