E-Z-GO 2009 Annual Report Download - page 99

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Item 9A. Controls and Procedures
Changes in Internal Controls — There have been no changes in our internal control over financial reporting during the fourth quarter of the fiscal
year covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Item 9B. Other Information
On February 23, 2010, the Organization and Compensation Committee of the Board of Directors of Textron Inc. approved the design of the annual
and long-term incentive compensation program for 2010 with respect to Textron Inc.’s executive officers, including grant levels under these
arrangements, as well as the mix of grant type and the type of metrics to be used for performance goals for 2010 and for the 2010-2012
performance share unit cycle. The Committee also set applicable targets for the metrics used. Other than as described herein, awards of stock
options, restricted stock units and performance share units operate on substantially the same terms as those granted in prior years.
Annual Incentive Compensation
Incentive payments to executive officers for 2010 under the Textron Inc. Short-Term Incentive Plan (As amended and restated effective July 25,
2007) will be based on the following:
• Achieving cash efciency target: 50%
• Achieving earnings target: 45%
• Achieving workforce diversity target: 5%
“Cash efciency” will be based (i) fty percent (50%) upon goals relating to net targeted nance receivable liquidations by Textron Financial
Corporation versus prescribed loss ratios, and (ii) fty percent (50%) upon targets relating to manufacturing cash ow.
Target payouts for the named executive ofcers range from 65% to 120% of the executive’s base salary. The amount actually paid generally can
range from zero, if the threshold level of actual performance relating to target performance objectives is not achieved, to no more than twice the
target award level. Payouts are made in cash following review and certification of performance results by the Committee.
Long-Term Incentive Compensation
For 2010 awards under the Textron Inc. 2007 Long-Term Incentive Plan (amended and restated as of May 1, 2007), as amended, the mix of grant
types will be redistributed such that 30% of the grant value for each executive ofcer will be awards in the form of stock options, 30% in the form
of restricted stock units and 40% in the form of performance share units.
Restricted stock units awarded in 2010 to executive officers will vest in equal installments over five years and will be settled in cash upon vesting.
These awards will also receive dividend equivalent payments on a quarterly basis prior to vesting.
Performance share units granted for the 2010-2012 cycle will be based 50% on achievement of earnings targets and 50% on cash efciency
targets. The maximum payout on performance share units will be 150%.
Failure to attain a minimum earnings performance level will result in the failure to earn any performance share units related to the earnings portion
of the award with respect to the related year. Attainment between the minimum and maximum earnings goals will result in earning a portion of the
performance share units related to the earnings portion of the award as defined by a pre-established mathematical formula. The Committee may
determine an award less than that determined by the formula but may not determine an award more than that derived by the formula.
The cash efficiency metric for the performance share units will work similarly to the earnings metric, provided that no performance share units will
be earned unless a minimum level of performance is achieved and a portion of the units will be earned if performance is between the minimum
and maximum according to a mathematical formula.
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