Page 13 - Martin Marietta - 2021 Proxy Statement

PROXY / OUR COMPENSATION APPROACH AND HIGHLIGHTS

Our Commitment to Our People and Pay-for-Performance

In 2020, we advanced our initiatives relating to engagement with our employees

✓ Inclusion & Engagement Task Force
✓ New Career Development Program providing employees with tools and resources for development, career
opportunities, and succession planning

✓ New High Deductible Healthcare Plan as a second healthcare plan alternative to employees
✓ New Paid Time Off policy to enhance employee benefits package

Our Compensation Approach and Highlights
A substantial portion of compensation paid to our named executive officers (NEOs) is variable and performance-based.
We use the 50th percentile of our peer group as a reference point when determining target compensation, but target
pay is set based on a variety of factors and actual pay realized by our NEOs is dependent on our financial, operational
and other related performance. Based on our record levels of performance in 2020, variable compensation payable
under both our short-term and long-term incentive plans exceeded the target amounts established for each NEO, which
is consistent with our pay-for-performance philosophy. All compensation paid to our CEO and other NEOs in 2020 was
performance-based other than base salary: approximately 87% of our CEO’s compensation was performance-based
and 74% of our other NEOs’ compensation was performance based.*
PROXY HIGHLIGHTS CEO Other NEO

Compensation
Compensation

34% 29% 33% 21%
BONUS PSUs BONUS PSUs
PERFORMANCE
BASED
26%
13% BASE
24% BASE PERFORMANCE 20% SALARY
SALARY
RSUs BASED RSUs

* Based on grant date value of Performance Share Units (PSUs) and Restricted Stock Units (RSUs).

8 2021 PROXY STATEMENT