Page 5 - Martin Marietta - 2021 Proxy Statement

Table of Contents

Proxy Statement Highlights ........................ 1 Annual Incentive Feature: Stock Purchase Plan ...... 54
The Board of Directors ............................ 9 2020 Long-Term Incentive Compensation
Overview ................................... 54
Board Effectiveness and Refreshment .............. 9
PSU Awards (55% of LTI Award) ................. 54
Board Qualifications and Diversity ................. 11
Selection of Relative TSR ....................... 55
Board, Committee and Individual Director
Evaluations ................................... 13 Performance-Based RSU Awards (45% of LTI
Award) ..................................... 56
Board Committees ............................. 13
2020-2022 Performance Goals .................. 56
Proposal 1: Election of Directors .................. 18
2018-2020 PSU Award Payouts.................. 57
Director Compensation ......................... 23
Ongoing Corporate Governance Policies ........... 58
Director Compensation Table .................... 25 Compensation Decision Process ................. 58
Beneficial Owners and Management ................ 26 Other Compensation Program Features ........... 60
Stock Ownership .............................. 26 Compensation Program Risk Assessment .......... 60
Delinquent Section 16(a) Reports ................. 27 Stock-Based Awards Generally .................. 60
Corporate Governance Matters .................... 28 Stock Ownership Requirements .................. 61
Corporate Governance Philosophy ................ 28 Anti-Hedging and Pledging Policy ................ 61
Corporate Governance Board Practices ............. 29 Clawback Policy .............................. 62
Our Use of Independent Compensation
Proposal 2: Independent Auditors ................ 34
Consultants ................................. 62
Summary of Fees .............................. 34 Practice Regarding Timing of Equity Grants ........ 63
Pre-Approval Policies and Procedures .............. 35 Perquisites .................................. 63
Audit Committee Review ........................ 35 Retirement and Other Benefits .................. 63
Audit Committee Report .......................... 35 Potential Payments upon Termination or Change of
Control ..................................... 64
Management Development and Compensation
Committee Report ................................ 36 Tax and Accounting Implications ................. 64
Executive Compensation ......................... 65
Compensation Committee Interlocks and Insider
Participation in Compensation Decisions ............ 36 Executive Officer Compensation ................. 65
Compensation Discussion and Analysis .............. 37 Summary Compensation Table .................. 65
Introduction .................................. 37 Grants of Plan-Based Awards ................... 66
Letter from Committee Chair .................... 38 Outstanding Equity Awards at Fiscal Year-End ...... 68
Option Exercises and Stock Vested ............... 69
Summary of our Compensation Considerations ...... 40
Retirement and Other Benefits .................. 69
Responsiveness to Shareholders: Shareholder
Engagement and Feedback on Executive Pension Benefits .............................. 70
Compensation Programs ........................ 40 Potential Payments Upon Termination or Change of
Our 2020 Performance ......................... 40 Control ..................................... 72
Sustainability, Safety and the Health of Our Employees CEO Pay Ratio Disclosure ....................... 75
During the COVID-19 Pandemic .................. 42
Proposal 3: Advisory Vote on the Compensation of
Compensation Decisions Yielding Alignment with Our Named Executive Officers .................... 76
Performance and Enhancing our Corporate
Resilience .................................... 45 Securities Authorized for Issuance Under Equity
Compensation Plans ............................. 77
Pay Decisions and Compensation Governance
Practices ..................................... 47 Equity Compensation Plan Information ............ 77
Determination of CEO Compensation .............. 48 Description of the TXI Legacy Plan................ 77
2020 Chairman, President and CEO Compensation . . 48 Description of the Deferred Compensation Plan ..... 78
2020 Named Executive Officers’ Compensation – Our Annual Meeting and Voting Information ........... 79
Compensation Strategy ......................... 49 Incorporation by Reference ..................... 82
Considerations Regarding 2020 Compensation ...... 51 Shareholders’ Proposals for 2022 Annual Meeting . . . 82
2020 Base Salary .............................. 51 Appendix A: Martin Marietta Guidelines for Potential
2020 Annual Cash Incentive Goals and Results ........ 52 New Board Members ............................ A-1
2020 Actual Incentive Cash Earned ................ 52 Appendix B: Non-GAAP Measures ................. B-1

2021 PROXY STATEMENT