Page 41 - 2019 Annual Report

NOTES TO FINANCIAL STATEMENTS (continued)

The total expected benefit payments to be paid by the Company, net of participant contributions, for each of the next five
years and the five‐year period thereafter are as follows:

(in millions)
2020 $ 2.0
2021 $ 1.4
2022 $ 1.4
2023 $ 1.3
2024 $ 1.2
Years 2025 ‐ 2029 $ 4.7

Defined Contribution Plan. The Company maintains a defined contribution plan that covers substantially all employees. This
plan, qualified under Section 401(a) of the Internal Revenue Code, is a retirement savings and investment plan for the
Company’s salaried and hourly employees. Under certain provisions of the plan, the Company, at established rates, matches
employees’ eligible contributions. The Company’s matching obligations were $17.6 million in 2019, $16.5 million in 2018 and
$14.9 million in 2017.

Note L: Stock‐Based Compensation
On May 19, 2016, the Company’s shareholders approved the Martin Marietta Amended and Restated Stock‐Based Award Plan.
The Martin Marietta Materials, Inc. Stock‐Based Award Plan, as amended from time to time, along with the Amended Omnibus
Securities Award Plan, originally approved in 1994 (collectively, the Plans), are still effective for awards made prior to 2017.
The Company has been authorized by the Board of Directors to repurchase shares of the Company’s common stock for issuance
under the stock‐based award plans (see Note N).
The Company grants restricted stock awards under the Plans to a group of executive officers, key personnel and nonemployee
members of the Board of Directors. The vesting of certain restricted stock awards is based on certain performance criteria over
a specified period of time. The number of shares may be increased to the maximum or reduced to the minimum threshold
based on the results of those criteria. In addition, certain awards are granted to individuals to encourage retention and motivate
key employees. These awards generally vest if the employee is continuously employed over a specified period of time and
require no payment from the employee. Awards granted to nonemployee members of the Board of Directors vest immediately.
The fair value of stock‐based award grants is expensed over the vesting period. Awards to employees eligible for retirement
prior to the award becoming fully vested are expensed over the period through the date that the employee first becomes
eligible to retire and is no longer required to provide service to earn the award. Awards granted to nonemployee members of
the Board of Directors are expensed immediately.
Additionally, an incentive compensation stock plan has been adopted under the Plans whereby certain participants may elect
to use up to 50% of their annual incentive compensation to acquire units representing shares of the Company’s common stock
at a 20% discount to the market value on the date of the incentive compensation award. Certain executive officers are required
to participate in the incentive compensation stock plan at certain minimum levels. Participants receive unrestricted shares of
common stock in an amount equal to their respective units generally at the end of a 34‐month period of additional employment
from the date of award or at retirement beginning at age 62. All rights of ownership of the common stock convey to the
participants upon the issuance of their respective shares at the end of the ownership‐vesting period.

Celebrating 25 Years as a Public Company Annual Report ♦ Page 39