Textron 2020 Proxy Statement

32 TEXTRON 2020 PROXY STATEMENT At its January 2020 meeting, the Committee discussed the annual incentive compensation awards to be paid to the NEOs for the 2019 performance period and considered input from the full Board. The Committee concluded that the calculated payouts appropriately reflected the Company’s performance for 2019 and approved the payouts as calculated above. Annual incentive compensation targets and payouts for 2017, 2018 and 2019 for each NEO are shown below: Name Position Target Payout Target Payout Target Payout Scott C. Donnelly CEO $1,800,000 $ 2,160,000 $1,854,000 $ 2,223,000 $ 1,854,000 $1,737,000 Frank T. Connor CFO $ 850,000 $1,020,000 $ 850,000 $1,019,000 $1,000,000 $ 937,000 E. Robert Lupone General Counsel $ 547,500 $ 657,000 $ 570,000 $ 683,000 $ 600,000 $ 562,000 Julie G. Duffy EVP, HR $ 285,000 $ 342,000 $ 300,000 $ 360,000 $ 412,500 $ 387,000 2017 2018 2019 Annual Incentive Compensation Targets and Payouts Prior Year Performance Analysis The Committee believes that a pay-for-performance analysis should compare Company performance vs. peer performance over the time period an incentive is earned and that operating metrics are the appropriate performance comparator for annual incentive awards. Therefore, to validate that Textron’s annual incentive compensation is appropriately linked to the executives’ performance, the Committee reviewed the annual incentive compensation paid to Textron’s CEO in 2019, with respect to 2018, compared to Textron’s year-over-year operating performance for that year, relative to the annual incentive compensation paid to the peer companies’ CEOs compared to the year-over-year operating performance of the performance peer group companies for the corresponding year. While exactly comparable data was not available for all peer companies, indicative comparisons were made using publicly-reported GAAP operating cash flows and pre-tax earnings from continuing operations. As was the case for previous years, the Committee’s comparative analysis conducted in 2019 for payouts related to the 2018 performance period confirmed the strong correlation between Textron’s annual incentive compensation payouts and its performance relative to its peers.