COMPENSATION DISCUSSION AND ANALYSIS 30 / TEXTRON 2026 PROXY STATEMENT How Does the Committee Select the Talent Peer Group? The Committee references a “talent” peer group of companies, recommended by its independent compensation consultant, and reviewed and approved by the Committee annually, as part of its process in establishing target direct compensation for each NEO. For its 2023 review of the talent peer group, the compensation consultant evaluated current and potential peer companies using the following factors: size appropriateness, based upon then current revenue and market capitalization, industry and business fit, global reach, and whether the company uses Textron as a peer company for compensation purposes. The Committee also considers changes that may occur at peer companies due to mergers and acquisitions and/or spin-off activities. After this review, the compensation consultant recommended, and the Committee concluded, that no changes to the 2024 talent peer group were warranted. The table below lists the 2024 talent peer group companies and Textron showing fiscal 2023 revenues. The 2024 talent peer group was referenced in setting target direct compensation for 2025. 2024 Talent Peer Group Company Name Industry 2023 Revenue ($ in billions) General Dynamics Corporation Aerospace and Defense $42.3 Northrop Grumman Corporation Aerospace and Defense $39.3 Honeywell International Inc. Industrial Conglomerate $36.7 Lear Corporation Auto Components $23.5 Eaton Corporation Plc Electrical Equipment $23.2 L3Harris Technologies, Inc. Aerospace and Defense $19.4 Parker-Hannifin Corporation Machinery $19.1 Illinois Tool Works Inc. Machinery $16.1 Emerson Electric Co. Electrical Equipment $15.2 BorgWarner Inc. Auto Components $14.2 Huntington Ingalls Industries Inc. Aerospace and Defense $11.5 Oshkosh Corporation Machinery $9.7 Rockwell Automation Inc. Electrical Equipment $9.1 Howmet Aerospace, Inc. Aerospace and Defense $6.6 TransDigm Group Aerospace and Defense $6.6 Spirit AeroSystems Holdings, Inc. Aerospace and Defense $6.0 Textron Inc. Aerospace and Defense $13.7 ($ in billions) $9.6 $15.7 $23.3 25th Percentile Median of Talent Peer Group 75th Percentile Changes to the Talent Peer Group for 2026 Consistent with the evaluation approach taken in 2024, the compensation consultant’s 2025 review and discussions with management resulted in a recommended change to the 2025 talent peer group referenced in setting target direct compensation for 2026. The Committee approved the recommendation to add GE Aerospace to the 2025 talent peer group as GE Aerospace had become an independent public company. This change to the talent peer group increased the number of aerospace and defense companies in the peer group to better align the talent peer group with Textron’s current and expected future business focus.
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