Page 58 - Martin Marietta - 2023 Proxy Statement

SUMMARY OF OUR COMPENSATION CONSIDERATIONS /

Diversity and Inclusion at a Glance

of workforce are
41% of workforce are 33% racially/ethnically 11% of workforce are
women
minorities
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 are making the data available on our website.

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 2022 Actual Incentive Cash Earned, the objective financial
metrics in our annual plan that were measured for purposes of the 2022 Annual Cash Incentive were Pre-Tax
Earnings and Adjusted 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.

The Company’s exceptional performance in 2022 resulted in strong payouts and reinforces our pay-for-performance
strategy which aligns our performance with management’s pay and with shareholders’ interests.

We also want to continuously ensure that our Company and business model are resilient and robust 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
as assessing management’s actions and whether they were appropriate in responding to and managing through
extraordinary 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.

52 2023 PROXY STATEMENT