Page 50 - Martin Marietta - 2021 Proxy Statement

/ SUMMARY OF OUR COMPENSATION CONSIDERATIONS

Compensation Decisions Yielding Alignment with Performance and Enhancing Our
Corporate Resilience
As described below under 2020 Actual Incentive Cash Earned, the objective financial metrics in our annual plan that
were measured for purposes of the 2020 Annual Cash Incentive were Pre-Tax Earnings and EBITDA, which are viewed as
indicative of the Company’s profitability, and Days Sales Outstanding (DSO), which is viewed as indicative of the
Company’s cash flow. All of these are important measures reflecting our performance and the creation of value for
shareholders. In addition, the Committee considered the following, which are also described on pages 40-41 under
Summary of Our Compensation Considerations:
• A detailed assessment of Martin Marietta’s overall financial performance and each segment’s financial performance,
including the highlights and the challenges.
• Shareholder returns, including the consistent delivery of value to Martin Marietta’s shareholders.
• Our safety performance, which continues to be world class and industry leading.
• Outstanding environmental and regulatory compliance results, sustainability initiatives, and cybersecurity protections.
• Continuing achievement of excellent management of working capital.

• The successful organic and inorganic growth of Martin Marietta.

These resulted in strong payouts in response to the Company’s strong performance in 2020 – our pay-for-performance
aligns our performance with management’s pay and with shareholders’ interests.

We also wanted to ensure that our Company and business model were resilient and robust enough to survive and thrive
under all challenging circumstances, regardless of whether they are predictable or within management’s control. In this
regard, the Committee developed a Resilience Scorecard that includes the key criteria described in the chart below that
in our view measure our company’s ability to remain strong through severe, unexpected circumstances, as well as
assessing management’s actions and whether they were appropriate in responding to and managing through events such
as the pandemic. The Resilience Scorecard allows the Committee to apply a multiplier of 0.75x to 1.25x to management’s
annual award that would be otherwise based on pre-event factors. These qualitative factors are important to position the
Company to minimize the adverse impact of the pandemic and rebound quickly as the event subsides and the economy
strengthens. We believe this scorecard is valuable to us under all circumstances, and not just to a pandemic. In the case of
the pandemic’s impact on the Company’s performance in 2020, the Committee determined not to apply any multiplier in
the Resilience Scorecard to management’s executive compensation for 2020. Further, the Committee made no COVID-19-
related adjustments to our compensation based on the scorecard.

Category Resilience Assessment Criteria
1. Employees • Act effectively to keep employees safe and productive through enhanced equipment and
faculty cleaning protocols, robust distancing and monitoring, and remote working
• Effectively and promptly communicate and manage guidance and instructions, to
employees through the newly-formed Martin Marietta Health Hub
• Provide financial support and emotional care to employees
• Offer opportunities for continued employee growth and development

2. Operations • Ensure continuity of critical products and services
• Minimize supply chain disruptions
• Effectively and nimbly manage schedules and budgets for major capital projects
(operations, IT systems, etc.)
• Take steps to appropriately manage fixed and variables costs

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