2018 Proxy Statement

TEXTRON 2018 PROXY STATEMENT 34 EXECUTIVE COMPENSATION 7KH IROORZLQJ 6XPPDU\ &RPSHQVDWLRQ 7DEOH VHWV IRUWK LQIRUPDWLRQ FRQFHUQLQJ FRPSHQVDWLRQ RI RXU SULQFLSDO H[HFXWLYH RI¿FHU SULQFLSDO ¿QDQFLDO RI¿FHU HDFK RWKHU LQGLYLGXDO ZKR ZDV VHUYLQJ DV DQ H[HFXWLYH RI¿FHU DW WKH HQG RI 7H[WURQ¶V ¿VFDO \HDU DQG RQH IRUPHU H[HFXWLYH RI¿FHU HDFK DQ ³1(2´ DQG FROOHFWLYHO\ WKH ³1(2V´ SUMMARY COMPENSATION TABLE Change in Pension Value and 1RQTXDOLÀHG Non-Equity Deferred Stock Option Incentive Plan Compensation All Other Salary Awards Awards Compensation Earnings Compensation Name and Principal Position Year ($)(1) ($)(2) ($)(3) ($)(4) ($)(5) ($)(6) Total ($) Scott C. Donnelly 2017 1,191,154 6,653,694 3,030,742 2,160,000 1,676,783 112,957 14,825,330 Chairman, President and 2016 1,146,500 6,056,207 2,464,511 1,619,000 1,302,717 83,236 12,672,171 &KLHI ([HFXWLYH 2I¿FHU Frank T. Connor 2017 990,385 1,907,576 863,756 1,020,000 596,815 88,292 5,466,824 Executive Vice President and 2016 940,385 1,744,836 709,857 809,000 456,185 68,296 4,728,559 &KLHI )LQDQFLDO 2I¿FHU E. Robert Lupone 2017 724,231 860,777 387,173 657,000 0 86,221 2,715,402 Executive Vice President, 2016 695,192 798,448 321,170 526,000 0 86,127 2,426,937 General Counsel and Secretary 2015 696,154 865,509 366,379 589,000 0 86,134 2,603,176 Julie G. Duffy 2017 403,216 191,741 86,388 342,000 347,325 25,561 1,396,231 Executive Vice President, Human Resources Cheryl H. Johnson (7) 2017 261,923 476,103 215,929 0 334,580 17,948 1,306,483 Executive Vice President, 2016 445,192 423,083 176,963 271,000 422,731 27,560 1,766,529 Human Resources 2015 426,923 432,877 197,725 297,000 191,580 26,646 1,572,751 %DVH VDODU\ LQFUHDVHV LI DQ\ DUH LPSOHPHQWHG LQ WKH ¿UVW SD\ SHULRG LQ 0DUFK RI HDFK \HDU WKHUHIRUH DPRXQWV VKRZQ LQ WKLV FROXPQ PD\ QRW H[DFWO\ PDWFK the base salaries disclosed in the CD&A. 7KH QXPEHUV VKRZQ LQ WKLV FROXPQ UHSUHVHQW WKH JUDQW GDWH IDLU YDOXHV RI HTXLW\ DZDUGV JUDQWHG GXULQJ WKH ¿VFDO \HDU ZKHWKHU VHWWOHG LQ VWRFN RU FDVK 7KH amounts for 2017 include PSUs (granted in 2015, 2016 and 2017 for all NEOs) and RSUs (granted in 2017), which are described in the CD&A. The grant date fair values have been determined based on the closing share price on the date of grant. For PSUs, since performance criteria are established on an annual EDVLV WKH DPRXQWV VKRZQ DUH IRU WKH ¿UVW \HDU RI WKH WKUHH \HDU SHUIRUPDQFH F\FOH EHJLQQLQJ LQ SOXV WKH VHFRQG \HDU RI WKH WKUHH \HDU SHUIRUPDQFH F\FOH EHJLQQLQJ LQ SOXV WKH WKLUG \HDU RI WKH WKUHH \HDU SHUIRUPDQFH F\FOH EHJLQQLQJ LQ 7KH JUDQW GDWH IDLU YDOXH RI HDFK HTXLW\ EDVHG FRPSRQHQW IRU 2017 is detailed below. Mr. Donnelly Mr. Connor Mr. Lupone Ms. Duffy Ms. Johnson Performance Share Units $3,661,541 $1,054,850 $478,565 $106,463 $262,959 Restricted Stock Units 2,992,153 852,726 382,212 85,278 213,144 Total $6,653,694 $1,907,576 $860,777 $191,741 $476,103 The PSU values above represent target performance. Assuming maximum performance is achieved, then the grant date fair value of the PSUs would be: Mr. Donnelly $5,492,312, Mr. Connor $1,582,274, Mr. Lupone $717,847, Ms. Duffy $159,694 and Ms. Johnson $394,439.