Textron CEO made $12.4M in 2015

SCOTT C. DONNELLY, CEO of Textron, received the largest portion of his pay in the form of stock awards in 2015. / COURTESY TEXTRON
SCOTT C. DONNELLY, CEO of Textron, received the largest portion of his pay in the form of stock awards in 2015. / COURTESY TEXTRON

PROVIDENCE – Textron Inc.’s president and CEO saw his base salary grow in 2015, but his total compensation for the year fell 8.8 percent to $12.4 million, largely because of a drop in yearly pension value and deferred earnings.
The next three highest-paid executives at Textron made a combined $8.9 million.
CEO Scott C. Donnelly, 54, who also holds the title of president and chairman, received the largest portion of his pay in the form of stock awards, which fell 1.6 percent to $6.4 million compared with 2014. His pension value and deferred compensation fell to $237,150 in 2015 from $1.5 million in 2014.
Donnelly, formerly a General Electric Co. executive, joined Textron in 2008 and became CEO in 2009. About 90 percent of his pay is tied to company performance, meaning if the company does well or poorly, so does Donnelly. The pay-for-performance strategy is common practice among large companies, and aims to incentivize executives to do well by their companies. Textron also compares executive compensation packages with peer corporations, such as Honeywell International Inc. and General Dynamics Corp.
Donnelly’s non-equity incentive plan grew from $1.7 million in 2014 to $1.8 million in 2015.
Textron, a multi-industry company specializing in aircraft, defense and industrial businesses, finished 2015 with profit totaling $697 million, or $2.50 per diluted share, compared with $600 million, or $2.13 per diluted share, in 2014.
Revenue for the year, however, fell 3.3 percent to $13.4 billion.
Donnelly’s base salary grew 6.6 percent to $1.2 million. His option awards totaled $2.7 million and all other compensation totaled $80,689, according to the filing.
Textron shareholders will be given the opportunity to vote on the executive compensation package at the company’s annual shareholders meeting at 11 a.m., April 27, at its headquarters on Westminster Street in Providence. As of March 1, Textron had outstanding 269 million shares of common stock. The meeting will also include the election of 11 company directors, who on average made about $248,000 each last year.
About 92 percent of shareholder votes cast in 2015 were in favor of the company’s executive compensation plan.
The three next highest-paid executives at Textron include:

  • Frank T. Connor: $4.7 million (executive vice president and chief financial officer)
  • E. Robert Lupone: $2.6 million (executive vice president, general counsel and secretary)
  • Cheryl H. Johnson: $1.6 million (executive vice president, human resources)

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