Page 145 - Martin Marietta - 2023 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)

and 2020 were $3.1 million, $4.9 million and $1.7 million, respectively. The aggregate intrinsic values for distributed awards were
based on the closing prices of the Company’s common stock on the dates of distribution.
Prior to 2016, under the Plans, the Company granted options to employees to purchase its common stock at a price equal to the
closing market value at the date of grant. Options become exercisable in four annual installments beginning one year after date
of grant. Options granted starting in 2013 expire ten years after the grant date, while outstanding options granted prior to 2013
expire eight years after the grant date.
The following table includes summary information for stock options as of December 31, 2022:

Weighted‐
Average
Weighted‐ Remaining
Average Contractual
Number of Exercise Life
Options Price (years)
utstanding at January 1, 2022 20,564 $ 133.59
Exercised (5,281) $ 125.02
Outstanding at December 31, 2022 15,283 $ 136.55 1.8

Exercisable at December 31, 2022 15,283 $ 136.55 1.8

The aggregate intrinsic values of options exercised during the years ended December 31, 2022, 2021 and 2020 were $1.3 million,
$2.3 million and $3.3 million, respectively, and were based on the closing prices of the Company’s common stock on the dates of
exercise. The aggregate intrinsic values for options outstanding and exercisable at December 31, 2022 were $3.1 million and were
based on the closing price of the Company’s common stock at December 31, 2022, which was $337.97.
At December 31, 2022, there were approximately 0.5 million awards available for grant under the Plans. In 2016, the Company’s
shareholders approved the issuance of an additional 0.8 million shares of common stock under the Plans.

In 1996, the Company adopted the Shareholder Value Achievement Plan to award shares of the Company’s common stock to key
senior employees based on certain common stock performance criteria over a long‐term period. Under the terms of this plan, 0.3
million shares of common stock were reserved for issuance. Through December 31, 2022, 42,025 shares have been issued under
this plan. No awards have been granted under this plan since 2000.

The Company adopted and the shareholders approved the Common Stock Purchase Plan for Directors in 1996, which provides
nonemployee members of the Board of Directors the election to receive all or a portion of their total fees in the form of the
Company’s common stock. Beginning in 2016, members of the Board of Directors were not required to defer any of their fees in
the form of the Company’s common stock. Under the terms of this plan, 0.3 million shares of common stock were reserved for
issuance. Nonemployee members of the Board of Directors elected to defer portions of their fees representing 1,767, 1,686 and
3,043 shares of the Company’s common stock under this plan during 2022, 2021 and 2020, respectively.

The following table summarizes stock‐based compensation expense for the years ended December 31, 2022, 2021 and 2020,
unrecognized compensation cost for nonvested awards at December 31, 2022 and the weighted‐average period over which
unrecognized compensation cost will be recognized:

Incentive
Restricted Compensation Directors’
(in millions, except year data) Stock Stock Awards Total
Stock‐based compensation expense recognized for
years ended December 31:
2022 $ 41.0 $ 1.1 $ 0.6 $ 42.7
2021 $ 41.4 $ 1.0 $ 0.6 $ 43.0
2020 $ 28.5 $ 0.8 $ 0.7 $ 30.0
Unrecognized compensation cost at
December 31, 2022 $ 41.5 $ 0.9 $ — $ 42.4
Weighted‐average period over which unrecognized
compensation cost will be recognized 2.1 years 1.6 years

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