Page 34 - Martin Marietta - 2023 Proxy Statement
P. 34

PROPOSAL 1: ELECTION OF DIRECTORS / DIRECTOR COMPENSATION



           Director Compensation

           Martin Marietta uses a combination of cash and stock-based compensation to attract and retain qualified candidates to
           serve on the Board of Directors. In setting Director compensation, Martin Marietta considers the significant amount of time
           that Directors expend in fulfilling their duties to Martin Marietta as well as the skill level required by Martin Marietta of
           members of the Board. The Board determines reasonable compensation for Directors upon recommendation of the
           Management Development and Compensation Committee of the Board, which retains an independent compensation
           consultant to assist it in making each recommendation.

           Cash Compensation Paid to Non-Employee Board Members
           The cash-based elements of annual Director compensation for fiscal year 2022 paid in quarterly installments, measured
           from the end of the month during which the 2022 Annual Meeting of Shareholders was held, were as follows.

            Cash Component Amount
            Annual Board Cash retainer                                                                     $120,000
            Annual Audit Committee chair retainer 1                                                        $ 20,000
            Annual Management Development and Compensation Committee chair retainer 2                      $ 20,000
            Annual Finance Committee chair retainer 2                                                      $ 15,000
            Annual Nominating and Corporate Governance Committee chair retainer 2                          $ 15,000
            Annual Ethics, Environment, Safety and Health Committee chair retainer 2                       $ 15,000
            Annual Audit Committee member retainer 2                                                       $  5,000
            Annual Lead Independent Director retainer 3                                                    $ 30,250


           1 This is in addition to the annual retainer and the annual Audit Committee member retainer
           2 This is in addition to the annual retainer in view of increased responsibilities
           3 This is in addition to the annual retainer and the annual Committee chair retainers in view of increased responsibilities

           The Company reimburses Directors for the travel expenses of, or provides transportation on Company aircraft for, Board
           and Committee meetings, meetings with management or independent consultants or advisors, and other Company-
           related events, such as Investor Day and meetings with potential Board candidates. No non-employee Directors received
           personal use of Martin Marietta’s aircraft or other perquisites or personal benefits in 2022.

           Equity Compensation Paid to Non-Employee Board Members

           Non-employee Directors received an award of restricted stock units (RSUs) with a value of $145,000 (rounded up to the
           nearest RSU) based on the closing price as of the date of grant, which was generally immediately following the 2022
           Annual Meeting of Shareholders in May 2022. In May 2022, this award was 443 RSUs. The RSUs granted to the Directors
           in 2022 were fully vested upon award. Directors are required to defer at least 50% of the RSUs until retirement from the
           Board. Directors may choose to voluntarily defer an additional portion of their RSUs, and any RSUs that are not so deferred
           are settled in shares of common stock of Martin Marietta as soon as practicable following the grant date. The RSUs were
           awarded under the Martin Marietta Amended and Restated Stock-Based Award Plan (the Stock Plan), which was approved
           by shareholders on May 19, 2016. The Stock Plan provides that, during any calendar year, no non-employee Director may
           be granted (i) restricted shares and other full-value stock-based awards, including RSUs, in respect of more than 7,000
           shares of common stock of Martin Marietta or (ii) options or stock appreciation rights in respect of more than 20,000
           shares of common stock of Martin Marietta.

           The Directors do not have voting or investment power for their respective RSUs.

           Deferred Compensation Program for Non-Employee Board Members

           The Common Stock Purchase Plan for Directors provides that non-employee Directors may elect to receive all or a portion
           of their fees earned in 2022 in the form of Martin Marietta common stock units. If deferral is elected, there is a mandatory


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