Page 51 - Martin Marietta - 2023 Proxy Statement
P. 51

Summary of Our Compensation Considerations

           Overall, the Company had another exceptional year, realizing record financial results, achieving world-class safety incident
           rates and, making significant progress on our long-term strategic plan. This CD&A describes how our executive
           compensation philosophy and the pay programs applicable to our NEOs in 2022 help to drive our strategy and
           performance. The fundamental objectives of our executive compensation program are to motivate our executive team,
           align pay with performance, attract and retain high-performing talent, and drive shareholder value. These objectives were
           achieved in 2022 as our incentive programs paid out commensurate with our strong performance. The compensation
           programs described below have been developed and are overseen by the Committee to promote the achievement of these
           objectives and reflect the considerations described below.

           Responsive to Shareholders: Shareholder Engagement and Feedback on Executive
           Compensation Programs

           Avenues of engagement                                        Discussion highlights
                  We hold in-person and/or virtual meetings with investor  › Company strategy, including acquisitions and
                  groups across the globe                                 divestitures

                  We conduct quarterly conference calls with analysts   › Financial and operating performance
                                                                        › Commercial and operational excellence goals
                  We engage with investors continually through
                  meetings, calls and emails                            › Safety, environment and sustainability
                  We report investor feedback to the Committee and the  › Inclusion, engagement and diversity efforts
                  Board to assist in aligning pay and performance       › Board oversight, refreshment and diversity


                We consider the input of our shareholders, along with emerging best practices,
                to ensure alignment of our executive pay programs with shareholder interests.
                At our 2022 Annual Meeting of Shareholders, 94% of the shares cast voted in
                favor of the advisory vote on executive compensation, or Say On Pay vote.


           Our 2022 Performance

           Building on prior-year success and continuing to demonstrate the resiliency and strength of our business, 2022 proved to be
           another year of outstanding financial and safety performance for Martin Marietta. We achieved our 11 consecutive year of
                                                                                                 th
            growth in products and services revenues, Gross Profit and Adjusted EBITDA. For continuing operations, we achieved
            consolidated revenues of $6.2 billion, up 13.8% from $5.4 billion in the prior year. These record revenues, as well as our
            record Adjusted EBITDA from continuing operations of $1.6 billion in 2022, were driven by double-digit pricing gains across
            all product lines, and full-year contributions from acquired operations which more than offset inflationary pressure from rising
            input costs and divestiture impacts on an absolute basis. Earnings per diluted share from continuing operations were $13.70,
            and Adjusted Diluted Earnings Per Share from continuing operations were $12.07. We also delivered world-class safety
            performance. For the second consecutive year, our Total Injury Incident Rate (TIIR) surpassed the world class benchmark, while
            our Total Lost Time Incident Rate (LTIR) achieved the world-class level for the sixth consecutive year. Additionally, we
            completed two divestitures of non-core cement and ready-mixed concrete businesses in California, Colorado, and Texas,
            which generated $650 million of proceeds to advance longstanding capital allocation priorities. Despite market volatility in
            2022, we continue to maintain our industry-leading TSR position over 5- and 10-year periods.














                                                                                                MARTIN MARIETTA 45
   46   47   48   49   50   51   52   53   54   55   56