2018 Proxy Statement

TEXTRON 2018 PROXY STATEMENT 30 2015-2017 PSU Award Value: Scott C. Donnelly $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Grant Date Award Value Value After Performance Adjustment Value After TSR Modifier Realized Value 100.0% 106.8% 70.5% 92.9% Reflects performance adjustment, TSR modifier and stock price increase of 31.8% Performance Share Units and Value Awarded and Earned for Period 2015-2017 Units 2015-2017 Value Name Position Original Award Units Paid 1 Original Award Final Payout 2 Scott C. Donnelly CEO 104,290 73,512 $4,621,090 $ 4,294,571 Frank T. Connor CFO 30,398 21,427 1,346,935 1,251,765 E. Robert Lupone General Counsel 13,999 9,868 620,296 576,489 Cheryl H. Johnson 3 EVP, HR 7,555 5,325 334,762 311,087 7KH &RPPLWWHH H[HUFLVHG LWV QHJDWLYH GLVFUHWLRQ DQG DSSOLHG WKH 765 PRGL¿HU WR UHGXFH WKH XQLWV SDLG E\ DQ DGGLWLRQDO DIWHU DGMXVWLQJ IRU RSHUDWLQJ performance. 7KH YDOXH RI WKH ¿QDO SD\RXW ZDV ORZHU WKDQ WKH YDOXH RI WKH RULJLQDO DZDUG DV D UHVXOW RI WKH &RPSDQ\¶V UHODWLYH 765 SHUIRUPDQFH FRPSDUHG WR WKH SHUIRUPDQFH SHHU JURXS HVWDEOLVKHG LQ IRU WKH 368 DZDUGV 7KH &RPSDQ\¶V 765 SHUIRUPDQFH ZDV EHORZ WKH PHGLDQ RI WKH SHUIRUPDQFH peer group. 0V -RKQVRQ UHFHLYHG D SD\RXW IRU KHU 368 DZDUG EHFDXVH VKH ZDV UHWLUHPHQW HOLJLEOH ZKHQ VKH WHUPLQDWHG KHU HPSOR\PHQW ZKLFK HQWLWOHG her to continued vesting of outstanding PSU awards. 0V 'XII\¶V 368 DZDUG LV QRW UHÀHFWHG LQ WKH SUHFHGLQJ FKDUW EHFDXVH LW ZDV JUDQWHG ZKLOH VKH VHUYHG LQ KHU SUHYLRXV UROH DQG FRQVLVWHQW ZLWK WKH WHUPV RI JUDQWV PDGH WR RWKHU QRQ H[HFXWLYH RI¿FHUV ZDV QRW VXEMHFW WR WKH 765 PRGL¿HU 7KH DPRXQW SDLG LV UHÀHFWHG LQ WKH 2SWLRQ ([HUFLVHV DQG 6WRFN 9HVWHG LQ )LVFDO WDEOH RQ SDJH 7KH FKDUW EHORZ VKRZV RXU &(2¶V F\FOH 368 DZDUG IURP JUDQW GDWH YDOXH DV DGMXVWHG E\ WKH &RPSDQ\¶V SHUIRUPDQFH DJDLQVW WKH JRDOV VHW E\ WKH &RPPLWWHH DQG DV DGMXVWHG IRU WKH 765 PRGL¿HU WR UHDOL]HG YDOXH ¿QDO SD\RXW YDOXH UHÀHFWLQJ WKH LQFUHDVH LQ 7H[WURQ¶V VWRFN SULFH GXULQJ WKH SHUIRUPDQFH SHULRG Restricted Stock Units and Stock Options ,Q DGGLWLRQ WR 368V WKH &RPSDQ\¶V ORQJ WHUP LQFHQWLYH FRPSHQVDWLRQ SURJUDP FRQVLVWV RI 568V DQG VWRFN RSWLRQV The ultimate value of these awards to the executives, upon the vesting of RSUs or the exercise of stock options, is directly based upon Textron’s stock price. For the value realized by the executives upon the vesting or exercise of these awards, see “Option Exercises and Stock Vested in Fiscal 2017” on page 38.