34 TEXTRON 2022 PROXY STATEMENT Two measures impact the value of PSU cash payouts: (i) the number of units earned is based on Textron’s performance against operating metrics and may be adjusted downward (but not upward), based upon the relative ranking of the Company’s three- year TSR performance compared to the TSR performance of its performance peer companies and the Committee’s discretion and (ii) the value of each unit earned is based on Textron’s stock price at the end of the performance cycle. To validate that the Company’s PSU awards link pay to performance, the Committee evaluated the PSU payouts on the basis of both relative performance (TSR performance vs. 2019 performance peer group companies) and absolute performance (change in stock price) and concluded that the payouts were appropriately linked to Textron’s overall performance. The table below shows the PSU awards granted in 2019 and the cash payout received by each executive in terms of both units and value. 2019–2021 Per formance Share Unit Payouts 2019–2021 Units 2019–2021 Value Name Position Units Granted Units Paid Grant Date Value Payout Value Scott C. Donnelly CEO 117,480 95,165 $ 6,394,436 $ 7,321,043 Frank T. Connor CFO 34,640 28,060 $1,885,455 $ 2,158,656 E. Robert Lupone General Counsel 14,922 12,088 $ 812,204 $ 929,930 Julie G. Duffy EVP, HR 10,259 8,310 $ 558,397 $ 639,288 As shown in the table above, the payout values of the 2019–2021 awards were somewhat above the grant date values of the awards due to an increase in stock price of 41.3% over the three-year period. As a result, the value of the PSUs at settlement was 114.5% of their grant date target value. The chart below shows in greater detail our CEO’s 2019–2021 cycle PSU award from grant date value, as adjusted by the Company’s performance against the goals set by the Committee and as adjusted for the TSR modifier, to realized value (final payout value), reflecting the change in Textron’s stock price during the performance period. CEO’s 2019–2021 PSU Award Value 100.0% Grant Date Award Value 81.0% Value After Realized Value Value After Performance Adjustment $6,000,000 Reflects performance adjustment, TSR modifier and stock price increase of 41.3% $7,000,000 $8,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 114.5% 95.3%
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