TEXTRON 2026 PROXY STATEMENT / 29 COMPENSATION DISCUSSION AND ANALYSIS OVERVIEW AND OBJECTIVES OF EXECUTIVE COMPENSATION PROGRAM The objectives of Textron’s compensation program for executive officers are: • Encouraging world class performance • Focusing executives on delivering balanced performance by providing (i) both cash and equity incentives and (ii) both annual and long-term incentives • Aligning executive compensation with shareholder value • Attracting and retaining high-performing talent To achieve these objectives, the Committee uses the following five guidelines for designing and implementing executive compensation programs at Textron: TARGET DIRECT COMPENSATION How Does the Committee Establish Target Direct Compensation? Target total direct compensation consists of three components: (i) base salary, (ii) target annual incentive compensation and (iii) target long-term incentive compensation. In establishing target pay, the Committee addresses each component with reference to a talent peer group median and makes its determinations based on individual responsibilities, complexity of position versus that of the market benchmarks, performance, experience, and future potential. When setting total direct compensation for newly appointed executive officers, the Committee typically targets the 25th percentile of the talent peer group benchmarks, with a focus on shorter-tenured executive officers in the respective position at the benchmark companies. The Committee’s intent is to accelerate compensation increases toward the market median as the executive officer gains experience and demonstrates sustained performance. The target incentive compensation components are generally established as a percentage of base salary, varying for each NEO. The objectives of the three components are as follows: Target Annual Incentive • Focus executives on executing the Company’s short-term business goals • Align executive compensation with increasing long-term shareholder value • Provide market-competitive fixed pay reflective of an executive’s responsibilities, position, experience and performance Base Salary Component AT-RISK COMPENSATION Target Long-Term Incentive Objective Target total direct compensation should be set in reference to the median target total direct compensation of a talent peer group 1 Incentive compensation payout should be higher than target compensation when Textron performs well and lower if Textron underperforms 2 Performance metrics should align interests of executives with long-term interests of shareholders 3 Compensation programs should not incentivize executives to conduct business in ways which could put the Company at undue risk 4 Indirect compensation should provide the same level of benefits given to other salaried employees 5
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