2018 Proxy Statement

TEXTRON 2018 PROXY STATEMENT 44 • 7UHDWPHQW RI /RQJ 7HUP ,QFHQWLYH $ZDUGV – Outstanding unvested stock options, PSUs and RSUs would be subject to immediate and full vesting acceleration as of the change in control – PSUs granted in 2016 and 2017 will be paid based on actual performance through the change in control and based on target performance after the change in control • %HQH¿WV XQGHU 5HWLUHPHQW 3ODQV ± )XOO YHVWLQJ DQG FUHGLW IRU DQ DGGLWLRQDO WKUHH \HDUV RI DJH DQG VHUYLFH DQG FRPSHQVDWLRQ XQGHU DOO GH¿QHG EHQH¿W W\SH retirement plans (including the SPP) – Full vesting acceleration under the Spillover Savings Plan ± $ SD\PHQW HTXDO WR WKUHH WLPHV WKH DPRXQW RI PD[LPXP &RPSDQ\ DQQXDO FRQWULEXWLRQ RU PDWFK WR DQ\ GH¿QHG FRQWULEXWLRQ type plan in which the executive participates • Continuation of Insurance Coverage: Continued coverage (or the cash equivalent thereof) for three years under the Company’s WHUP OLIH LQVXUDQFH DQG ORQJ WHUP GLVDELOLW\ LQVXUDQFH SODQV DQG WR WKH H[WHQW HOLJLEOH RQ WKH GDWH RI WHUPLQDWLRQ XQGHU WKH accidental death and dismemberment insurance and dependent life insurance plans • Additional Perquisites: Outplacement assistance for up to one year following termination • 7D[ *URVV 8S 3D\PHQW 6XEMHFW WR FHUWDLQ FRQGLWLRQV WKH &RPSDQ\ ZRXOG JURVV XS VHYHUDQFH SD\PHQWV WR FRYHU WKH executive’s excise taxes, if any, determined in accordance with Sections 4999 and 280G of the Internal Revenue Code OTHER NEOS 7KH 6HYHUDQFH 3ODQ IRU 7H[WURQ .H\ ([HFXWLYHV LQ ZKLFK HDFK RI WKH RWKHU 1(2V SDUWLFLSDWHV SURYLGHV VHYHUDQFH SD\ DQG VHYHUDQFH EHQH¿WV LQ WKH HYHQW RI DQ LQYROXQWDU\ WHUPLQDWLRQ RU WHUPLQDWLRQ IRU ³JRRG UHDVRQ´ E\ WKH H[HFXWLYH IROORZLQJ D FKDQJH of control only if the executive signs a release provided in and required by the plan document. The severance pay, payable in a lump sum, is equal to the sum of: (i) the executive’s annual rate of base salary at the date of severance, and (ii) the larger of (a) the average of his or her three most recent actual awards of annual incentive compensation (whether or not deferred) and (b) his or her current target incentive compensation under the annual incentive compensation plan. In addition, medical and dental EHQH¿WV ZRXOG EH SURYLGHG E\ 7H[WURQ WR WKH H[HFXWLYH DQG WR KLV RU KHU GHSHQGHQWV RQ WHUPV ZKLFK DUH QRW OHVV IDYRUDEOH WR WKHP WKDQ WKH WHUPV H[LVWLQJ LPPHGLDWHO\ EHIRUH VHYHUDQFH 6XFK VHYHUDQFH EHQH¿WV ZRXOG EH FRQWLQXHG IRU HLJKWHHQ PRQWKV following severance (or, if less, until the executive or dependent obtains comparable coverage under another employer’s plan or Medicare). 8QGHU WKH 6HYHUDQFH 3ODQ IRU 7H[WURQ .H\ ([HFXWLYHV ³FKDQJH RI FRQWURO´ PHDQV WKH RFFXUUHQFH RI DQ\ RI WKH IROORZLQJ HYHQWV L DQ\ SHUVRQ XQUHODWHG WR 7H[WURQ D EHFRPHV RWKHU WKDQ E\ DFTXLVLWLRQ IURP 7H[WURQ WKH EHQH¿FLDO RZQHU RI PRUH WKDQ of Textron’s then outstanding voting stock, (b) acquires more than 30% of Textron’s then outstanding voting stock, or (c) acquires all or substantially all of the total gross fair market value of all of the assets of Textron, (ii) a merger or consolidation of Textron with any other corporation occurs, other than a merger or consolidation that would result in the voting securities of Textron outstanding immediately before the merger or consolidation continuing to represent 50% or more of the combined voting power of the voting securities of Textron or such surviving entity outstanding immediately after such merger or consolidation, or (iii) during any PRQWK SHULRG D PDMRULW\ RI WKH PHPEHUV RI WKH %RDUG LV UHSODFHG E\ GLUHFWRUV ZKRVH DSSRLQWPHQW RU HOHFWLRQ LV QRW HQGRUVHG by a majority of the members of the Board of Directors before the date of their appointment or election. In addition, in the event of a not for cause or good reason termination in connection with a change of control, the other NEOs ZRXOG UHFHLYH L IXOO YHVWLQJ DFFHOHUDWLRQ XQGHU WKH 633 663 DQG 763 DQG LL IXOO YHVWLQJ RI ORQJ WHUP LQFHQWLYH DZDUGV ZKLFK would be payable in the same manner described above for Mr. Donnelly. The following tables show additional or accelerated payments which would be payable to our NEOs under existing agreements, plans or other arrangements, for various scenarios triggered by a termination of employment, assuming the termination date to be December 29, 2017, and, where applicable, using the closing price of our common stock of $56.59 (as reported on the New York 6WRFN ([FKDQJH RQ 'HFHPEHU WKH ODVW WUDGLQJ GD\ RI RXU ¿VFDO \HDU