Page 51 - Martin Marietta - 2022 Proxy Statement

SUMMARY OF OUR COMPENSATION CONSIDERATIONS /

as assessing management’s actions and whether they were appropriate in responding to and managing through events
such as the COVID-19 pandemic. The Resilience Scorecard allows the Committee to apply a multiplier of 0.75x to 1.25x to
management’s annual award that would be otherwise based on pre-event factors. These qualitative factors are important
to position the Company to minimize the adverse impact from these unexpected events. We believe this scorecard is
valuable to us under all circumstances, and not just to the pandemic. In the case of the pandemic’s impact on the
Company’s performance in 2020 and 2021, the Committee determined not to apply any multiplier in the
Resilience Scorecard to management’s executive compensation. Further, the Committee made no
COVID-19-related adjustments to our compensation based on the scorecard.

Category Resilience Assessment Criteria
1. Employees • Act effectively to keep employees safe and productive through execution of our COVID
protocols while continuing to strengthen our Guardian Angel and ONE culture
• Effectively and promptly communicate and manage guidance and instructions, to employees
through the newly-formed Martin Marietta Health Hub
• Provide financial support and emotional care to employees
• Offer opportunities for continued employee growth and development
• Complete or plan the successful addition and integration of approximately 1,600 employees
associated with M&A transactions
2. Operations • Management response to ensure continuity of critical products and services related to the
pandemic, the Texas freeze, etc.
• Minimize supply chain disruptions
• Effectively and nimbly manage schedules and budgets for major capital projects (operations,
IT systems, etc.)
• Take steps to appropriately manage fixed and variables costs

3. Financial • Optimize revenues and cash management/liquidity without jeopardizing the future of the
Company’s financial strength and flexibility
• Protect the balance sheet and allocate capital responsibly, including with regard to internal
projects, transactions, dividends and share repurchases
4. Customers/Suppliers • Ensure on-time delivery and completion of projects during global supply chain disruptions or
other non-recurring event
• Effectively manage inventory to satisfy customer needs
• Communicate operating status and preventative measures being taken
5. Strategy • Successful execution of M&A actions and SOAR
• Maintain Company long-term vision and strategic direction
• Take actions to ensure continuation and execution of strategic transactions
6. Stakeholder • Maintain leadership effectiveness
Engagement
• Frequently communicate and engage with the Board to keep them well-informed and
appropriately respond to questions
• Engage in open dialogue and transparency with shareholders, analysts, potential investors
and other stakeholders
7. ESG • Undertake community outreach efforts (disaster preparedness support, corporate giving)
• Focus on safety, as well as health of employees, customers and visitors
• Environmental compliance and enhanced disclosure and responsiveness regarding
sustainability goals
Overall • Holistic Assessment of the Above Criteria Resulting in Multiplier in Range of 0.75x - 1.25x

46 2022 PROXY STATEMENT