Page 59 - Martin Marietta - 2024 Proxy Statement

/ SUMMARY OF OUR COMPENSATION CONSIDERATIONS

• Successfully launched Martin Marietta’s first three Employee Resource Groups:
- Military and Veterans Community (MVC)
- Women Who Build (WWB)
Military &
- MERGE (a Multi-Cultural ERG) Veterans Women MERGE
Community Who Build

• Created and filled a new Employee Engagement Manager position to support companywide inclusion and engagement
programs.

Diversity and Inclusion at a Glance

of workforce are
42% of workforce are 34% 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.

In recognition of our success building and strengthening an inclusive workplace where
employees of all backgrounds feel valued, respected and engaged, we were recognized
as one of America’s Greatest Workplaces for Diversity for 2024 by Newsweek magazine.
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 have
made 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 previously mentioned, while Martin Marietta’s executive incentives have always been driven
by objective financial metrics, a new formulaic approach was introduced for calculating 2023 executive officer incentive
values in response to shareholder feedback. As described below under 2023 Actual Incentive Cash Earned, the
objective financial metrics in our annual plan that were measured for purposes of the 2023 Annual Cash
Incentive were Adjusted Cash Gross Profit, which is viewed as indicative of the Company’s profitability, and Selling,
General and Administrative Expenses (SG&A) as a Percentage of Total Revenues, which is viewed as indicative of the
Company’s cost management. In addition, a portion of the incentive calculation is tied to achievement of targeted safety
metrics and identified sustainability goals. Together, these metrics are important measures reflecting our performance and
the creation of long-term value for shareholders.

The Company’s exceptional performance in 2023 resulted in strong payouts from the Annual Cash Incentive Plan 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 under challenging
circumstances, regardless of whether they are predictable or within management’s control. In this regard, the Committee
developed a Resilience Scorecard in 2021 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.

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