COMPENSATION DISCUSSION AND ANALYSIS 26 / TEXTRON 2026 PROXY STATEMENT Overview of Recent Executive Leadership Changes Appointment of Lisa Atherton as President, Chief Executive Officer and Director of Textron After conducting a comprehensive succession planning process, on October 22, 2025, the Textron Board of Directors appointed Lisa Atherton, the President and CEO of the Company’s Bell segment, as Textron’s next President and CEO and as a member of the Board, all effective January 4, 2026. At the Board’s request, Scott Donnelly agreed to continue to serve as Chairman of the Board, transitioning to the role of Executive Chairman of the Board, effective January 4, 2026. These changes in Textron’s leadership, along with a summary of the 2026 compensation package for each of these executives in their new roles, was reported in a Current Report on Form 8-K filed with the SEC on October 22, 2025. David Rosenberg Became Executive Vice President and Chief Financial Officer on March 1, 2025 On October 23, 2024, the Board of Directors appointed David Rosenberg, previously the Company’s Vice President – Investor Relations, as Executive Vice President and Chief Financial Officer of Textron, effective March 1, 2025, succeeding Frank T. Connor who retired as the Executive Vice President and Chief Financial Officer of Textron, effective February 28, 2025. Change to the Annual Incentive Compensation Metric for 2026 With artificial intelligence (AI) being a high priority for the Company, beginning in 2026, our annual incentive compensation program will include an AI adoption and utilization component (weighted at 5%) in place of the environmental, social and governance component. The Committee will determine performance with respect to the AI component based upon a qualitative assessment of the Company’s progress with respect to the adoption, utilization, and integration of AI by our employees into our business operations and other processes. Named Executive Officers Our named executive officers (“NEOs”) for fiscal 2025 consist of our President and Chief Executive Officer, Mr. Scott Donnelly (who served in this position for the entirety of 2025), our Executive Vice President and Chief Financial Officer, Mr. David Rosenberg, our Executive Vice President, General Counsel and Secretary, Mr. Robert Lupone, and our Executive Vice President and Chief Human Resources Officer, Ms. Julie Duffy. Our former Executive Vice President and Chief Financial Officer, Mr. Frank Connor, is included for reporting purposes herein because he served in that role through February 28, 2025. Additionally, our current President and Chief Executive Officer, Ms. Lisa Atherton, is not an NEO for fiscal 2025 because she began serving in those positions on January 4, 2026. Overview of 2025 Executive Compensation Decisions and Results Key compensation decisions and results for 2025 include the following: 2025 Base Salaries: • The Organization and Compensation Committee (the “Committee”) assessed the competitiveness of executive compensation using peer group data, and, based on such assessment, approved increases to base salaries for certain NEOs. Mr. Donnelly received an increase of 4.2% while Mr. Lupone, and Ms. Duffy received increases of 5.3% and 6.7% respectively. • The Committee had approved a 2025 base salary of $850,000 for Mr. Rosenberg upon his appointment as CFO. 2025 Annual Incentive Compensation: • As in previous years, the Committee selected enterprise net operating profit and manufacturing cash flow as quantitative performance measures, and environmental, social and governance progress as a qualitative performance measure for 2025 annual incentive compensation. • The Committee approved annual incentive compensation payouts at 128.6% of target, based on the Company’s performance.
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