EXECUTIVE COMPENSATION 52 / TEXTRON 2026 PROXY STATEMENT Named Executive Officer Who Voluntarily Retired during 2025 Mr. Connor, who was retirement eligible when he retired from the Company during 2025, is entitled to continued vesting of his unvested RSUs, stock options and PSUs as a result of his voluntary retirement. The following table reflects amounts paid or payable to him as a result of this continued vesting, including (i) actual amounts paid with respect to awards that vested after his retirement through March 1, 2026 and (ii) amounts payable with respect to unvested RSU and PSU awards, estimated using our closing stock price on January 2, 2026. Actual amounts payable in the future depend on share value on future dates and, therefore, may vary significantly due to changes in our share price between January 2, 2026 and the actual date or dates used for calculation of the payments due. Frank T. Connor Voluntary Annual Incentive/Severance 0 RSUs settled in stock(1) $ 3,252,291 Stock Options(1)(2) $ 193,846 Cash Settlement of PSUs(1)(3) $ 4,432,537 Pension benefit(4) 0 Other benefits 0 Amounts Triggered due to Termination $7,878,674 (1) Amounts reported for RSUs, stock options and PSUs reflect continued vesting of the awards according to their vesting schedules due to Mr. Connor’s retirement eligible status and voluntary termination. (2) Reflects the intrinsic value of outstanding unvested options at the end of the 2025 fiscal year. (3) PSU amounts have been calculated assuming that the 2024-2026 PSU cycle will be paid at 100% of target. (4) Pension benefits for Mr. Connor are set forth in the Pension Benefits in Fiscal 2025 table on page 45. PAY RATIO We are required by the Dodd-Frank Wall Street Reform and Consumer Protection Act and Securities and Exchange Commission (“SEC”) rules to provide the ratio of the annual total compensation of Mr. Donnelly, our Chief Executive Officer, to that of an employee whose annual compensation is at the median of all our employees. Textron and its consolidated subsidiaries together have approximately 34,000 employees located throughout the world, with approximately 80% in the U.S., 10% in Europe, 6% in Canada and Mexico combined, 4% in Asia and less than 1% elsewhere. To identify the employee with compensation at the median of all employees for our 2025 fiscal year, we used “annual rate”, as reflected in our enterprise-wide human resources information system, as of October 1, 2025, for all of our employees, including part time, temporary and seasonal employees. The annual rate for salaried employees reflects base salary paid on an annual basis. For hourly employees, the annual rate is arrived at using their hourly rate and standard work hours. We did not make any cost-of-living adjustments despite the large variety of labor markets in which our employees work, nor did we make any adjustments to account for the variety of compensation arrangements used to pay employees in varying roles (e.g., we did not include overtime, commissions, bonuses or other types of non-fixed compensation). Using this methodology for 2025, we determined that the “median employee” was a full-time, salaried employee located in the U.S. Total compensation for the median employee in the 2025 fiscal year was in the amount of $111,269. “Annual total compensation” of the median employee includes regular earnings, bonus payments, Company contributions to a 401(k) plan on behalf of the employee, and the Company-paid portion of health and welfare benefits. “Annual total compensation” for Mr. Donnelly for the 2025 fiscal year was $21,186,411 which is a $20,855 increase over the amount reflected in the “Total” column in the Summary Compensation Table on page 40. The increase reflects the inclusion of Mr. Donnelly’s health and welfare benefits which are excluded from the Summary Compensation Table amounts under SEC rules. Based upon this information, for 2025 the ratio of the annual total compensation of Mr. Donnelly to the annual total compensation of the median employee was 190 to 1.
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