Page 6 - Martin Marietta - 2024 Proxy Statement

Table of Contents

Proxy Statement Highlights ......................... 1 2023 Long-Term Incentive Compensation Overview . . . 63
The Board of Directors .............................. 16 PSU Awards (55% of LTI Award) .................. 64
Board Effectiveness and Refreshment ............... 16 Selection of Relative TSR ......................... 65
Board Qualifications, Gender and Diversity ........... 18 RSU Awards (45% of LTI Award) .................. 65
Board Refreshment Elements ...................... 19 2023-2025 Performance Goals ................... 65
Tenure Guidelines ............................... 19 2021-2023 PSU Award Payouts ................... 66
Board, Committee and Individual Director Ongoing Corporate Governance Policies ............ 67
Evaluations .................................... 20 Compensation Decision Process ................... 67
Board Committees .............................. 21
Other Compensation Program Features ............. 69
Proposal 1: Election of Directors .................... 25 Compensation Program Risk Assessment ........... 69
Director Compensation ........................... 30 Stock-Based Awards Generally .................... 70
Director Compensation Table ...................... 31 Stock Ownership Requirements ................... 70
Beneficial Owners and Management ................. 32 Anti-Hedging and Pledging Policy ................. 71
Stock Ownership ................................ 32 Clawback Policy ............................... 71
Corporate Governance Matters ...................... 34 Our Use of Independent Compensation Consultants . . 71
Corporate Governance Philosophy .................. 34 Practice Regarding Timing of Equity Grants .......... 72
Corporate Governance Board Practices .............. 35 Perquisites .................................... 72
Retirement and Other Benefits .................... 72
Proposal 2: Independent Auditors .................. 39
Potential Payments upon Termination or Change of
Summary of Fees ............................... 40
Control ...................................... 73
Pre-Approval Policies and Procedures ............... 40
Tax and Accounting Implications .................. 73
Audit Committee Review ......................... 40
Executive Compensation ........................... 74
Audit Committee Report ............................ 41
Executive Officer Compensation .................. 74
Management Development and Compensation Summary Compensation Table .................... 74
Committee Report ................................. 42
Grants of Plan-Based Awards ..................... 75
Compensation Committee Interlocks and Insider
Participation in Compensation Decisions .............. 42 Outstanding Equity Awards at Fiscal Year-End ....... 77
Option Exercises and Stock Vested ................. 78
Compensation Discussion and Analysis ............... 43
Retirement and Other Benefits .................... 78
Introduction ................................... 43
Pension Benefits ............................... 80
Summary of our Compensation Considerations ....... 44
Potential Payments Upon Termination or Change of
Responsiveness to Shareholders: Shareholder Control ...................................... 81
Engagement and Feedback on Executive Compensation
Programs ...................................... 44 Required Pay Disclosures ........................... 84
Our 2023 Performance ........................... 46 CEO Pay Ratio Disclosure ........................ 84
Sustainability, Safety and the Well-Being of our Pay Versus Performance ......................... 85
Employees ..................................... 49
Proposal 3: Advisory Vote on the Compensation of
Compensation Decisions Yielding Alignment with Our Named Executive Officers ..................... 89
Performance and Enhancing our Corporate Resilience . . 53
Pay Decisions and Compensation Governance Securities Authorized for Issuance Under Equity
Practices ...................................... 55 Compensation Plans ............................... 90
Determination of CEO Compensation ............... 56 Equity Compensation Plan Information ............. 90
2023 Chair, President and CEO Compensation ........ 56 Description of the TXI Legacy Plan ................. 90
2023 Named Executive Officers’ Compensation – Our Description of the Deferred Compensation Plan ...... 91
Compensation Strategy .......................... 57 Annual Meeting and Voting Information ............. 92
Considerations Regarding 2023 Compensation ....... 59 Incorporation by Reference ....................... 95
2023 Base Salary ................................ 59 Shareholders’ Proposals for 2025 Annual Meeting .... 95
2023 Annual Cash Incentive Goals and Results ........ 60
Appendix A: Martin Marietta Guidelines for Potential
2023 Actual Incentive Cash Earned ................. 60 New Board Members .............................. A-1
Annual Incentive Feature: Stock Purchase Plan ........ 63 Appendix B: Non-GAAP Measures ................... B-1

2024 PROXY STATEMENT