Page 50 - Martin Marietta - 2022 Proxy Statement

/ SUMMARY OF OUR COMPENSATION CONSIDERATIONS

that we will consistently develop the best ideas and advance our world-class ambition. Enabled by an inclusive
environment where each person feels like they belong, are valued and can speak up, engagement allows us to forge
stronger, more productive connections fueled by trust, compassion and authenticity. It ensures we pursue excellence and
continuously improve – as ONE Team.

Diversity and Inclusion at a Glance

of workforce are of workforce are
of workforce are
41% minorities 33% racially/ethnically 10% women
diverse
We are committed to fostering diversity and inclusion, and strive to maintain a culture and adherence to core values that
attract and celebrate diversity in our workplace. We believe that diversity promotes creativity, innovation, and mutual
respect, which are all core to our values. We recognize that the unique viewpoints and experiences of every employee are
important to achieving our mission to be a world-class organization, and have implemented initiatives that we believe will
allow us to continue to improve on those objectives.

Although we do not necessarily believe that the Equal Employment Opportunity Commission data required on Form EEO-1
fully reflects our job-role structure, we will make the data available on our website in 2022.

Compensation Decisions Yielding Alignment with Performance and Enhancing Our
Corporate Resilience

In determining compensation, the Committee considers many factors in order to align performance with the compensation
received by our executives. As described below under 2021 Actual Incentive Cash Earned, the objective financial metrics
in our annual plan that were measured for purposes of the 2021 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 factors summarized below.

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.
• Execution of our talent management and succession planning strategies.

These resulted in strong payouts in response to the Company’s strong performance in 2021 – our pay-for-performance
aligns our performance with management’s pay and with shareholders’ interests. The Committee also took into
consideration that as an “essential business” under state and local laws, the Company’s operations remained open
throughout the pandemic, as well as management’s response to the COVID-19 global pandemic, which included ensuring
the health of our employees while continuing operations with minimal disruptions and continuing to serve our customers.

We also want to continuously ensure that our Company and business model are 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 in 2020 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

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