Page 62 - Martin Marietta - 2021 Proxy Statement

2020-2022 PERFORMANCE GOALS / COMPENSATION DISCUSSION AND ANALYSIS

2020 Performance Goals and Metrics
Relative TSR (Modifier +/- 20%)* EBITDA (67%)*** Sales Growth (33%)
TSR Sales
Percentile Payout EBITDA Payout Growth Payout
Achievement Factor Achievement Factor** Achievement Factor**
≥ 75 th +20% (Maximum) Plan + ≥ $.52B 200% (Maximum) Plan + ≥ 4.5% 200% (Maximum)
50 th 0% adjustment (Target) Plan EBITDA 100% (Target) Plan Growth 100% (Target)
≤ 25 th -20% (Threshold) Plan - $1.275B 50% (Threshold) Plan - 1.5% 50% (Threshold)
Plan - < $1.275B 0% Plan - < 1.5% 0%

* rTSR is calculated as (i) the average of our closing stock price over the final 20 trading days of the measurement period, minus the
average of our closing stock price over the first 20 trading days of the measurement period, plus the value of reinvested dividends
divided by (ii) the average of our closing stock price over the first 20 trading days of the measurement period, and is measured
against each of the companies in the S&P 500 index (excluding any Companies acquired during the measurement period).
** Threshold and maximum are a percentage of the target.
*** EBITDA is calculated from Martin Marietta’s audited financial statements in the same manner as set forth in the reconciliations as
provided in Appendix B, with the exception that adjustments are taken for certain nonrecurring items in accordance with the award
agreements.

2018-2020 PSU Award Payouts

PSUs that were granted in 2018 vested on December 31, 2020, because the applicable performance criteria were satisfied.
These PSUs were certified and paid out in February 2021. The PSU payouts for the three-year performance period ended
December 31, 2020 were calculated by comparing actual corporate performance for each metric for the period January 1,
2018 through December 31, 2020, against a table of payment levels from 0% to 200% (with the 100% payout level
being considered target) established at the beginning of the performance period.

For the three-year performance period ended December 31, 2020, actual results were 200% of target. The results were
above targeted level for each metric. EBITDA (weighted 67%) was $3.78 billion compared to our pre-established target of
$3.24 billion and generated a 200% payout factor and Sales Growth (weighted 33%) was 13.92% compared to our
pre-established target of 4.50% and generated a 200% payout factor. The rTSR modifier, which provides for an
adjustment up or down of up to 20%, resulted in a 100.4% adjustment as our TSR over the three-year measurement
period was at the 51st percentile of S&P 500 companies over the same period. The awards are calculated pursuant to the
provisions provided in the award agreements. The Committee cannot make any adjustments to the final payout factor
beyond the adjustments specified in the award agreements.

Performance Performance Weighted
Measure Target Result Weighting Payout Factor
EBITDA $3.24B $3.78B 67% 134%
Sales Growth 4.5% 13.92% 33% 66%
st
Relative TSR 50 percentile 51 percentile +/-20% 100.4% of total award
th

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