PAY VERSUS PERFORMANCE Pay Versus Performance Table The following table provides a summary of “Compensation Actually Paid,” calculated as prescribed by the SEC (“CAP”), to the principal executive officer (“PEO”), the average CAP for the other non-PEO named executive officers (“Non-PEO NEOs”), total shareholder return (“TSR”), Net Income and the Company-selected financial measure of Manufacturing Cash Flow before Pension Contributions for 2023, 2022, 2021 and 2020. Value of Initial Fixed $100 Investment based on:(2) Summary Compensation Table Total for PEO ($) Compensation Actually Paid to PEO ($)(1) Average Summary Compensation Table Total for Non-PEO NEOs ($) Average Compensation Actually Paid to Non-PEO NEOs ($)(1) Company Total Shareholder Return (TSR) ($) Peer Group TSR S&P 500 A&D Index TSR ($) Peer Group TSR S&P 500 Industrials Index TSR ($) Net Income ($) (in millions) Manufacturing Cash Flow before Pension Contributions(3) 2023 20,391,762 27,994,633 4,921,857 6,004,863 181.4 119.1 150.2 921 931 2022 15,367,279 18,736,482 3,881,920 4,533,894 159.5 111.5 127.2 861 1,188 2021 18,576,014 45,821,710 4,819,441 9,366,481 173.7 95.0 134.5 746 1,149 2020 17,770,781 15,822,859 4,206,109 3,770,432 108.6 83.9 111.1 309 596 (1) During each year in the table above, Mr. Donnelly was Textron’s Principal Executive Officer (“PEO”) and our other Named Executive Officers (“Non-PEO NEOs”) consisted of Mr. Connor, Mr. Lupone and Ms. Duffy. (2) Represents the value as of the end of each year indicated of $100 invested on December 31, 2019 in the Company’s stock or in one of the indicated Peer Group indices. (3) 2022’s Manufacturing Cash Flow before Pension Contributions has been adjusted to exclude the impact of the Pipistrel acquisition consistent with the prior year’s presentation. “Compensation Actually Paid” is defined by the SEC to include amounts not actually received by the PEO or non-PEO NEOs. The calculation of CAP is required to include, not only actual take-home pay for the reported year, but (i) an alternate valuation of pension benefits accrued during the year, (ii) the year-end value of equity awards granted during the reported year, and (iii) the change in the value of equity awards that were unvested at the end of the prior year, measured through the date the awards vested or through the end of the reported fiscal year. The reconciliation below sets forth adjustments made to the Summary Compensation Table Total for Mr. Donnelly and the average of the Summary Compensation Table Total for the Non- PEO NEOs to arrive at “Compensation Actually Paid to PEO” and “Average Compensation Actually Paid to Non-PEO NEOs”, in the manner prescribed by SEC rules. PEO Non-PEO NEOs (average) 2023 2022 2021 2020 2023 2022 2021 2020 Summary Compensation Table (“SCT”) Total $ 20,391,762 $ 15,367,279 $ 18,576,014 $ 17,770,781 $ 4,921,857 $ 3,881,920 $ 4,819,441 $4,206,109 Adjustments: Deduction for Change in Actuarial Present Values reported under the “Change in Pension Value and Nonqualified Deferred Compensation Earnings” column of the SCT (2,682,449) — (95,972) (2,838,193) (759,247) — (216,984) (708,553) Increase for “Service Cost” for pension plans 413,267 576,449 580,054 512,139 129,420 162,591 165,031 188,354 TEXTRON 2024 PROXY STATEMENT 51
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