Page 6 - Martin Marietta - 2023 Proxy Statement

Table of Contents

Proxy Statement Highlights ......................... 1 Selection of Relative TSR ........................ 62
The Board of Directors .............................. 14 Performance-Based RSU Awards (45% of LTI Award) . . 63
Board Effectiveness and Refreshment ............... 14 2022-2024 Performance Goals ................... 63
Board Qualifications, Gender and Diversity ........... 16 2020-2022 PSU Award Payouts ................... 64
Board Refreshment Elements ..................... 17 Ongoing Corporate Governance Policies ............ 65
Tenure Guidelines .............................. 17 Compensation Decision Process ................... 65
Board, Committee and Individual Director Other Compensation Program Features ............. 67
Evaluations .................................... 18 Compensation Program Risk Assessment ........... 67
Board Committees .............................. 19 Stock-Based Awards Generally .................... 67
Proposal 1: Election of Directors .................... 23 Stock Ownership Requirements ................... 68
Director Compensation ........................... 28 Anti-Hedging and Pledging Policy ................. 68
Director Compensation Table ...................... 29 Clawback Policy ............................... 69
Our Use of Independent Compensation Consultants . . 69
Beneficial Owners and Management ................. 30
Practice Regarding Timing of Equity Grants .......... 69
Stock Ownership ................................ 30
Perquisites .................................... 70
Corporate Governance Matters ...................... 32 Retirement and Other Benefits .................... 70
Corporate Governance Philosophy .................. 32 Potential Payments upon Termination or Change of
Corporate Governance Board Practices .............. 33 Control ...................................... 70
Tax and Accounting Implications .................. 71
Proposal 2: Independent Auditors ................... 37
Summary of Fees ............................... 38 Executive Compensation ........................... 72
Executive Officer Compensation .................. 72
Pre-Approval Policies and Procedures ............... 38
Summary Compensation Table ................... 72
Audit Committee Review ......................... 38
Grants of Plan-Based Awards ..................... 73
Audit Committee Report ............................ 39
Outstanding Equity Awards at Fiscal Year-End ....... 75
Management Development and Compensation Option Exercises and Stock Vested ................ 76
Committee Report ................................. 40
Retirement and Other Benefits .................... 76
Compensation Committee Interlocks and Insider Pension Benefits ............................... 78
Participation in Compensation Decisions .............. 40
Potential Payments Upon Termination or Change of
Compensation Discussion and Analysis ............... 41 Control ...................................... 79
Introduction ................................... 41 Required Pay Disclosures .......................... 82
Letter from Committee Chair ...................... 42 CEO Pay Ratio Disclosure ........................ 82
Summary of our Compensation Considerations ....... 45 Pay Versus Performance ......................... 83
Responsiveness to Shareholders: Shareholder Proposal 3: Advisory Vote on the Compensation of
Engagement and Feedback on Executive Compensation
Programs ...................................... 45 Our Named Executive Officers ...................... 88
Our 2022 Performance ........................... 45 Proposal 4: Advisory Vote on the Frequency of
Sustainability, Safety and Employee Well-Being ....... 48 Executive Compensation Vote ...................... 89
Compensation Decisions Yielding Alignment with Proposal 5: Shareholder Proposal, if Properly
Performance and Enhancing our Corporate Resilience . . 52 Presented at the Meeting, Requesting the
Pay Decisions and Compensation Governance Establishment Within a Year of GHG Reduction
Practices ...................................... 54 Targets ......................................... 90
Determination of CEO Compensation ............... 55 Securities Authorized for Issuance Under Equity
2022 Chairman, President and CEO Compensation .... 55 Compensation Plans ............................... 96
2022 Named Executive Officers’ Compensation – Our Equity Compensation Plan Information ............. 96
Compensation Strategy .......................... 56 Description of the TXI Legacy Plan ................. 96
Considerations Regarding 2022 Compensation ....... 58 Description of the Deferred Compensation Plan ...... 97
2022 Base Salary ................................ 58 Annual Meeting and Voting Information ............ 98
2022 Annual Cash Incentive Goals and Results ........ 59 Incorporation by Reference ...................... 101
2022 Actual Incentive Cash Earned ................. 59 Shareholders’ Proposals for 2024 Annual Meeting .... 101
Annual Incentive Feature: Stock Purchase Plan ........ 61 Appendix A: Martin Marietta Guidelines for Potential
2022 Long-Term Incentive Compensation Overview .... 61 New Board Members .............................. A-1
PSU Awards (55% of LTI Award) ................... 61 Appendix B: Non-GAAP Measures ................... B-1

2023 PROXY STATEMENT