Page 60 - Martin Marietta - 2023 Proxy Statement
P. 60

COMPENSATION DISCUSSION AND ANALYSIS / PAY DECISIONS AND COMPENSATION GOVERNANCE PRACTICES



           Pay Decisions and Compensation Governance Practices

           A number of key 2022 compensation-related decisions resulted from our achievements, which are discussed more fully in
           this section. The Committee believes that our executive compensation program continues to reflect a strong
           pay-for-performance philosophy and is well aligned with the interests of shareholders. In addition, we believe that our
           compensation practices are consistent with our pay decisions.

            WHAT WE DO              YES
            Pay for performance     Tie pay to performance by ensuring that a significant portion of NEO compensation is
                                    performance-based and at-risk.
            Median compensation     We generally aim to align all target compensation elements for our executives with the
            targets                 median of our peer group companies.

            PSUs are a substantial  PSU grants, tied to our achievement of specified performance measures, comprised
            portion of LTI          approximately 55% of the total value of annual long-term incentive grants made to our NEOs
                                    in 2022. Performance-based RSUs comprised the remaining 45%.
            Independent
            compensation            The Committee retains an independent compensation consultant.
            consultant
            Robust share            We have robust stock ownership guidelines of 7 times base salary for the CEO, 5 times base
            ownership               salary for our other NEOs, and 5 times annual retainer for Directors. We also have an equity
            requirements            retention requirement of 50% of net shares paid as incentive compensation until ownership
                                    guidelines are met.
            Clawback policy         We have a compensation recovery (clawback) policy that requires officers to forfeit certain
                                    cash-based incentive compensation and/or equity-based incentive compensation if the
                                    company restates its financial statements due to the officer’s misconduct.
            Regular engagement
            with shareholders       We engage with shareholders to hear their views on compensation and other issues.
            Annual elections        All of our Directors stand for election each year.


            WHAT WE DON’T DO        NO
            No employment           None of our NEOs or other executive officers have employment contracts that guarantee
            contracts               continued employment.

            No dividends on         Our 2022 RSU and PSU awards require three years to fully vest and dividends paid on shares
            unvested awards         of common stock of Martin Marietta during the vesting period are only paid to award holders
                                    if and when an award vests.
            No pledging of shares   Our directors and executive officers are not permitted to pledge Martin Marietta shares as
                                    collateral for loans or any other purpose.
            No hedging              We prohibit directors and executive officers from engaging in short sales of Martin Marietta
                                    stock or similar transactions intended to hedge or offset the market value of Martin Marietta
                                    stock owned by them.
            No 280G gross-ups       We do not provide executives with Section 280G excise tax gross-ups.
            No single trigger       Equity awards will not automatically vest as a result of a change in control.
            equity vesting

            Minimal executive       We do not provide NEOs with country club reimbursements, personal use of the Company
            perquisites             aircraft unrelated to business travel, or other excessive perks.




           54 2023 PROXY STATEMENT
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