Page 45 - Martin Marietta - 2021 Proxy Statement

Summary of Our Compensation Considerations

Responsive to Shareholders: Shareholder Engagement and Feedback on Executive
Compensation Programs

Avenues of engagement Discussion highlights
We hold in-person and/or virtual meetings with investor › Financial and operating performance of the
groups across the globe Company
We conduct quarterly conference calls with analysts › Executive compensation, pay-for-performance
› Safety, environment and sustainability
We engage with investors continually through
meetings, calls and emails › Ongoing company strategy
We report investor feedback to the Committee and the
Board to assist in aligning pay and performance

As a reflection of our commitment to shareholders, We consider the input of our
Institutional Investor again recognized Martin shareholders, along with emerging best
Marietta’s Investor Relations Team in 2020 as leaders practices, to ensure alignment with our
in the Homebuilders & Building Products category. executive pay programs. At our 2020
Factors contributing to the Company’s high marks include
accessibility of senior executives, timely and appropriate Annual Meeting of Shareholders, 95.4%
disclosures, quick and thorough responses to questions, and of the shares cast voted in favor of the
a well-informed and empowered investor relations team. advisory vote on executive
compensation, or Say On Pay vote.

Our 2020 Performance
Building on prior-year success and demonstrating the resiliency of our business in challenging circumstances, 2020 proved
to be another year of outstanding financial and safety performance for Martin Marietta. We functioned as an essential
business during the COVID-19 pandemic in 2020 with limited business disruption, achieving consolidated revenues of
$4.7 billion, consistent with the prior year, which reflected steady pricing gains in all product lines offsetting a modest
decline in aggregates shipments. While aggregates shipments were lower than the prior year due to headwinds from the
global pandemic, we reported record financial results with an increase of 11% in Adjusted EBITDA, 290 basis point
improvement in Adjusted EBITDA Margin, and 18.5% increase in Diluted Earnings Per Share from the prior year level.

Despite a year filled with unprecedented disruption caused by the COVID-19 pandemic, we achieved our ninth consecutive
year of growth for products and services revenues, adjusted gross profit, Adjusted EBITDA and adjusted earnings per
diluted share (after adjusting for the one-time earnings per diluted share benefit in 2017 resulting from the Tax Cuts and
Jobs Act of 2017). Additionally, we delivered the best safety performance in our Company’s history.

NET EARNINGS attributable to Martin Marietta of Returned $190 MILLION TO SHAREHOLDERS via
$721.0 million and ADJUSTED EBITDA* OF $1.393 dividends and share repurchases
BILLION, an increase of 11%

Continuous commitment to SUSTAINABILITY, which is Fourth consecutive year of WORLD-CLASS SAFETY
included in our strategy and compensation decisions performance

Disciplined management through COVID-19 pandemic Successful completion of NEW FIVE-YEAR STRATEGIC
ensured EMPLOYEE HEALTH AND SAFETY with PLAN, SOAR 2025, to guide future growth and
minimal business disruption improvement

* See Appendix B for reconciliation to reported net earnings attributable to Martin Marietta. Adjusted EBITDA is a metric used for executive performance
targets.

40 2021 PROXY STATEMENT