Page 62 - Martin Marietta - 2023 Proxy Statement

COMPENSATION DISCUSSION AND ANALYSIS / 2022 NAMED EXECUTIVE OFFICERS’ COMPENSATION—OUR COMPENSATION STRATEGY

2022 Named Executive Officers’ Compensation – Our Compensation Strategy

Our executive compensation program is specifically designed to:
• Attract and retain top-caliber, knowledgeable and experienced senior executives.
• Motivate our executives to achieve superior results and build long-term value for shareholders.
• Reward performance that meets or exceeds established goals consistent with our strategic aims and upholding
integrity.
• Align individual objectives with the Company’s objectives without fostering excessive or inappropriate risk-taking.
• Encourage an ownership mentality and align the long-term financial interests of our executives with those of our
shareholders.
• Be market competitive with our peers with whom we compete for talent.
• Provide reward systems that are measurable and easily understood by our executives and shareholders.
• Inspire exceptional management and resiliency in times of unexpected and extraordinary circumstances.

• Reinforce the succession planning process undertaken on a company-wide basis by building bench strength and by
identifying and retaining senior leadership capable of achieving the Company’s long-term growth, profitability and other
objectives.

In 2022, our executive compensation structure consisted of three primary components: base salary, annual incentives, and
long-term incentives. Within the long-term incentive component, we utilized a balanced portfolio of PSUs and
performance-based RSUs.
TOTAL COMPENSATION OPPORTUNITY

Long-Term Annual
Base Salary
Incentives Incentives

PSUs 55% of Award RSUs 45% of Award
Vesting and size based Vesting is conditioned on
on Martin Marietta performance measured after
performance level year 1 and then continued
employment over the
three years that the
awards vest

Martin Marietta has a long-standing commitment to pay for performance. We fulfill that aim by providing a majority of
compensation through programs in which the amounts ultimately received vary in order to best reflect our financial,
operational and strategic performance.

56 2023 PROXY STATEMENT