Page 44 - Martin Marietta - 2022 Proxy Statement

Summary of Our Compensation Considerations
Overall, the company had an extraordinarily successful year, with outstanding operational results and industry-leading TSR.
This CD&A describes how our executive compensation philosophy and the pay programs applicable to our NEOs in 2021
help to drive our strategy and performance. The fundamental objectives of our executive compensation program are to
motivate our executive team, align pay with performance, retain talent, and drive shareholder value. These objectives were
achieved in 2021 as our incentive programs paid out commensurate with our strong performance. The compensation
programs described below have been developed and are overseen by the Committee to promote the achievement of these
objectives and reflect the considerations described below.

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 › Company strategy and 2021 acquisitions
groups across the globe › Financial and operating performance of the
We conduct quarterly conference calls with analysts Company
› Safety, environment and sustainability
We engage with investors continually through
meetings, calls and emails › Board refreshment and diversity
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
Marietta’s Investor Relations Team in 2021 as best practices, to ensure alignment of
leaders in the Homebuilders & Building our executive pay programs with
Products sector. Factors contributing to the
Company’s high marks include accessibility of senior shareholder interests. At our 2021
executives, timely and appropriate disclosures, quick Annual Meeting of Shareholders,
and thorough responses to questions, and a well- 93.1% of the shares cast voted in favor
informed and empowered investor relations team. of the advisory vote on executive
compensation, or Say On Pay vote.

Our 2021 Performance

Building on prior-year success and continuing to demonstrate the ongoing resiliency of our business in extraordinary
circumstances, 2021 proved to be another year of outstanding financial and safety performance for Martin Marietta. For
continuing operations, we achieved consolidated revenues of $5.4 billion, up 14.5% from $4.7 billion in the prior year. These
record revenues, as well as our record Adjusted EBITDA from continuing operations of $1.5 billion, were driven by organic
shipment growth, pricing gains, and contributions from acquired operations which more than offset higher energy-related
costs in the year. Diluted Earnings Per Share from continuing operations were $11.21. Adjusted Diluted Earnings Per Share
from continuing operations increased to a record-high $12.28, up 6.4% from the prior year level. We also delivered the best
safety performance in our Company’s history yet again. For the first time ever, our Total Injury Incident Rate (TIIR) surpassed
the world class benchmark, while our Total Lost Time Incident Rate (LTIR) achieved the world class level for the fifth
consecutive year. Additionally, we completed four value-enhancing acquisitions that strengthened existing market positions
and expanded Martin Marietta’s footprint to the West Coast. These accomplishments helped us create industry-leading TSRs
over 1-, 3-, and 10-year periods.

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