COMPENSATION DISCUSSION AND ANALYSIS 36 / TEXTRON 2026 PROXY STATEMENT As shown above, the earned percentage for the 2023-2025 PSU award is 93.3% of target. The Company’s performance on the Cumulative Manufacturing Cash Flow metric was above target while performance on the average ROIC metric was below target. Performance on the relative Total Shareholder Return metric performed at target. Two factors impact the value of PSU payouts: (i) the number of units earned is based on Textron’s performance against operating metrics and (ii) the value of each unit earned is based on Textron’s stock price at the end of the performance period. The table below shows the PSU awards granted in 2023 and the payout earned by each NEO who received the award. 2023-2025 Performance Share Unit Payouts 2023-2025 Units 2023-2025 Value Name(1) Position Units Granted Units Earned Grant Date Target Value Payout Value Scott C. Donnelly CEO 92,003 85,793 $6,733,700 $7,909,257 E. Robert Lupone General Counsel 11,271 10,511 $824,924 $969,009 Julie G. Duffy CHRO 8,670 8,085 $634,557 $745,356 Frank T. Connor (Retired) CFO 26,451 24,666 $1,935,949 $2,273,959 (1) Mr. Rosenberg was not an executive officer of Textron at the time the 2023-2025 PSUs were granted. As shown in the table above, the payout values of the 2023-2025 awards were above the grant date values of the awards. The higher payout values are due to a 26.0% increase in Textron’s stock price over the three-year period from the March 1, 2023 grant date ($73.19) to the 2026 first ten-day trading average used to value the payout ($92.19). As a result, the value of the PSUs at settlement was 117.5% of their grant date target value as illustrated in the chart below with respect to the CEO’s award. CEO’s 2023-2025 PSU Award Value 100.0% 93.3% 117.5% Grant Date Award Value Realized Value Value After Performance Adjustment $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000
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