Page 5 - Martin Marietta - 2022 Proxy Statement

Table of Contents

Proxy Statement Highlights ....................... 1 2021 Long-Term Incentive Compensation
Overview ................................... 54
The Board of Directors ........................... 10
PSU Awards (55% of LTI Award) ................. 54
Board Effectiveness and Refreshment ............. 10
Selection of Relative TSR ....................... 55
Board Qualifications, Gender and Diversity ......... 12
Performance-Based RSU Awards (45% of LTI
Board, Committee and Individual Director Award) ..................................... 56
Evaluations .................................. 14
2021-2023 Performance Goals .................. 56
Board Committees ............................ 15
2019-2021 PSU Award Payouts.................. 57
Proposal 1: Election of Directors ................. 19
Ongoing Corporate Governance Policies ........... 58
Director Compensation ........................ 24 Compensation Decision Process ................. 58
Director Compensation Table ................... 26 Other Compensation Program Features ........... 60
Beneficial Owners and Management ............... 27 Compensation Program Risk Assessment .......... 60
Stock Ownership ............................. 27 Stock-Based Awards Generally .................. 60
Corporate Governance Matters .................... 29 Stock Ownership Requirements .................. 61
Corporate Governance Philosophy ............... 29 Anti-Hedging and Pledging Policy ................ 61
Clawback Policy .............................. 62
Corporate Governance Board Practices ............ 30
Our Use of Independent Compensation
Proposal 2: Independent Auditors ............... 35 Consultants ................................. 62
Summary of Fees ............................. 35 Practice Regarding Timing of Equity Grants ........ 62
Pre-Approval Policies and Procedures ............. 36 Perquisites .................................. 63
Audit Committee Review ....................... 36 Retirement and Other Benefits .................. 63
Audit Committee Report ......................... 36 Potential Payments upon Termination or Change of
Control ..................................... 63
Management Development and Compensation
Committee Report ............................... 37 Tax and Accounting Implications ................. 64
Executive Compensation ......................... 65
Compensation Committee Interlocks and Insider
Participation in Compensation Decisions ........... 37 Executive Officer Compensation ................. 65
Summary Compensation Table .................. 65
Compensation Discussion and Analysis ............. 38
Grants of Plan-Based Awards ................... 66
Introduction ................................. 38
Outstanding Equity Awards at Fiscal Year-End ...... 68
Summary of our Compensation Considerations ..... 39
Option Exercises and Stock Vested ............... 69
Responsiveness to Shareholders: Shareholder
Engagement and Feedback on Executive Retirement and Other Benefits .................. 69
Compensation Programs ....................... 39 Pension Benefits .............................. 71
Our 2021 Performance ........................ 39 Potential Payments Upon Termination or Change of
Sustainability, Safety and the Well-Being of Our Control ..................................... 72
Employees .................................. 42 CEO Pay Ratio Disclosure ....................... 75
Compensation Decisions Yielding Alignment with Proposal 3: Advisory Vote on the Compensation of
Performance and Enhancing our Corporate Resilience . . 45
Our Named Executive Officers ................... 76
Pay Decisions and Compensation Governance
Practices .................................... 47 Securities Authorized for Issuance Under Equity
Compensation Plans ............................. 77
Determination of CEO Compensation ............. 48
Equity Compensation Plan Information ............ 77
2021 Chairman, President and CEO
Compensation ............................... 48 Description of the TXI Legacy Plan................ 77
2021 Named Executive Officers’ Compensation – Our Description of the Deferred Compensation Plan ..... 78
Compensation Strategy ........................ 49 Annual Meeting and Voting Information ........... 79
Considerations Regarding 2021 Compensation ..... 51 Incorporation by Reference ..................... 82
2021 Base Salary ............................. 51 Shareholders’ Proposals for 2023 Annual Meeting . . . 82
2021 Annual Cash Incentive Goals and Results ....... 52 Appendix A: Martin Marietta Guidelines for Potential
2021 Actual Incentive Cash Earned ................ 52 New Board Members ............................ A-1
Annual Incentive Feature: Stock Purchase Plan ...... 54 Appendix B: Non-GAAP Measures ................. B-1

2022 PROXY STATEMENT