Page 44 - Martin Marietta - 2021 Proxy Statement

/ LETTER FROM COMMITTEE CHAIR

Rooted in our values of safety, integrity, excellence, community and stewardship, and driven by our World-Class vision, our
employees demonstrated exceptional commitment in 2020, following strict COVID-19 protocols to keep their coworkers,
communities and family members safe, while continuing essential business operations with minimal disruption. While
keeping employees safe and healthy has been the Company’s priority since before the onset of the COVID-19 pandemic,
we also made progress on a variety of other important employee-related initiatives in 2020. Importantly, we also
formalized our efforts to increase diversity in our workplace with the formation of our Inclusion and Engagement Steering
Committee, comprised of employees with diverse race, gender, background, experience and other factors. We believe this
will also drive us to be better and attract the best talent available.
One of this Committee’s most important responsibilities is ensuring that our employees and management team are
incentivized and rewarded when they achieve excellent performance. We are also focused on the appropriate development
of our management team by providing opportunities to learn, expand their skill sets, and have opportunities available to
them. We pride ourselves on saying that our employees come to Martin Marietta not for a job, but for a career. These
objectives are an important part of maintaining a company that is sustainable, resilient and capable of delivering long-term
growth.
Sustainability
Sustainability is part of our core strategy and Martin Marietta has a long track record of building solid foundations, caring
about our employees, our communities and the environment, while responsibly growing our company. One of our
commitments to our shareholders and other stakeholders is to improve each year on these metrics. In addition, we have
endeavored to tell our story better each year, informing our shareholders and other stakeholders about our efforts, costs,
risks, goals, and the relationship between our goals and management compensation. In 2020 we advanced this objective
by providing enhanced disclosure regarding our carbon footprint and other environmental matters, including setting our
goals for reduction by 2030.
Executive Compensation in 2020
The Committee believes that our executive compensation programs should evolve and be adjusted over time to support
the achievement of our business goals, to reflect our challenges, and to promote near- and long-term shareholder value.
During 2020, the Committee reviewed and evaluated market trends and best practices in designing and implementing
elements of our compensation program. The Committee continues to believe that the goals for our executive
compensation programs are to attract talented managers and incentivize and reward achievements that create value for
our shareholders.
Our annual incentives are based on the achievement of various performance metrics, including overall financial
performance, shareholder returns, safety performance, sustainability, environmental and regulatory compliance results,
management of working capital, and organic and inorganic growth. In addition, after the start of the COVID-19 pandemic
and as further described below, the Committee created a “Resilience Scorecard” to align our executive and employee
teams with maintaining our health and safety. We view this Resilience Scorecard as a tool we can use to assess whether
the Company’s long-term success is durable and sustainable.

Our long-term incentives are designed to align executives with shareholder interests and to tie incentives with long-term
goals. To ensure our plans achieve these goals, we conduct an annual assessment of compensation practices, which are
more fully described below.
We believe that our executive incentive plans are highly motivational and create alignment with our performance and the
shareholders’ experience. For 2020, as described above, our excellent industry-leading financial performance yielded an
award of 190% of target for the annual incentive and an achievement of 200.8% under the Performance Share Units
against the targets set for the 2018-2020 performance period. This is a shareholder aligned outcome.

In closing, the Committee believes that we have a very robust business model that yields attractive increases in shareholder
value and positions us well for the future. Our executive compensation program helps drive those goals, and rewards our
management and employees when they are achieved. We appreciate your support and welcome your feedback on our
executive compensation programs and look forward to ongoing dialogue.

Sincerely,
John J. Koraleski, Chair
Management Development and Compensation Committee

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