Page 14 - Martin Marietta - 2022 Proxy Statement

/ PROXY

Our Commitment to Our People and Pay-for-Performance

In 2021, we advanced our initiatives relating to employee engagement

✓ Inclusion & Engagement Task Force
✓ New Career Development Program providing employees with improved tools and resources for development, career
opportunities, and succession planning

✓ New High Deductible Healthcare Plan as a second healthcare plan alternative to employees
✓ New Paid Time Off policy to enhance employee benefits package

Our Compensation Approach and Highlights
A substantial portion of compensation paid to our named executive officers (NEOs) is variable and performance-based.
We use the 50th percentile of our peer group as a reference point when determining target compensation, but target
pay is set based on a variety of factors and actual pay realized by our NEOs is dependent on our financial, operational
and other related performance. Based on our record levels of performance in 2021, variable compensation payable
under both our short-term and long-term incentive plans exceeded the target amounts established for each NEO, which
is consistent with our pay-for-performance philosophy. All compensation paid to our CEO and other NEOs in 2021 was
performance-based other than base salary; approximately 89% of our CEO’s compensation was performance-based
and 75% of our other NEOs’ actual compensation was performance based.*

CEO Other NEO PROXY HIGHLIGHTS
Compensation Compensation

22%
31% 32% 35% PSUs
BONUS PSUs BONUS
PERFORMANCE
BASED
25%
11% BASE
26% BASE 18% SALARY
RSUs SALARY PERFORMANCE RSUs
BASED

* Based on grant date value of Performance Share Units (PSUs) and Restricted Stock Units (RSUs).

MARTIN MARIETTA 9