TEXTRON 2022 PROXY STATEMENT 33 Long-Term Incentive Compensation Payouts and Per formance Analysis Performance Share Units Payouts for the 2019-2021 PSU cycle were based upon performance for each of the annual periods within the 2019-2021 cycle against performance goals set for three one-year performance periods, weighted equally, subject to a TSR modifier that can decrease, but not increase, the final payout up to 40%, based on the relative ranking of Textron’s three-year TSR performance compared to that of our 2019 performance peers (as set forth in our 2020 proxy statement) and the Committee’s discretion. As discussed above, beginning with PSUs granted in 2020, we redesigned our PSU awards to be based on threeyear performance goals established at the time that the awards are granted. The performance achieved against the threshold, target and maximum payouts for the 2019-2021 PSU cycle, and the resulting percentage earned by the executive officers after application of the TSR modifier, are detailed below: 2019–2021 Per formance Share Unit Calculation ($ in millions) $806 $1,534 $928 $276 Actual: $751 Actual: $596 $1,246 $602 60% 60% 60% 53.9% 0.0% 89.7% 40% 40% 40% 42.6% 39.6% 60.0% Threshold 50% Payout Target 100% Payout $868 $611 $1,692 $1,136 $924 $623 $277 $183 Maximum 150% Payout Component Component 96.5% Total 39.6% 149.7% Enterprise NOP Enterprise NOP Enterprise NOP Manufacturing Cash Flow Manufacturing Cash Flow Manufacturing Cash Flow Actual: $1,134 Actual: $642 Actual: $1,149 2019 2020 2021 $600 $1,372 $895 $403 Actual: $1,270 *The performance metrics for 2021 are described in more detail in the 2021 Annual Incentive Compensation Calculation chart on page 32 and for previous years are described in the proxy statement for the applicable year. Payouts are made in cash and could range from 0% to 150% of target based on performance. 95.3% Units Earned as % of Original Award -15% TSR Modifier applied by O&C Committee 81.0% Final Payout as % of Original Award The calculated payout for the 2019-2021 PSU award was 95.3%, which reflects the average of results for the performance period: 2021 was above target, 2020 was well below target due to pandemic impacts, and 2019 was near target. The Committee used its discretion to reduce the final payout by 15%, based on Textron’s three-year relative TSR performance which was just above the median of the 2019 performance peer group. The final payout was 81.0% of the original award (95.3% x (100%-15%) = 81%), which recognizes the negative impacts of the pandemic over the three-year period.
RkJQdWJsaXNoZXIy MjQ2MDYz