Page 67 - Martin Marietta - 2024 Proxy Statement

2023 ACTUAL INCENTIVE CASH EARNED / COMPENSATION DISCUSSION AND ANALYSIS

The table below summarizes the specific targets set for the 2023 annual cash incentive plan for Martin Marietta’s executive
officers (before the application of a potential 20% discretionary individual adjustment factor):

Guidance Goal/
Threshold Target Maximum
(Payout % of (Payout % of (Payout % of
% Weight Metric Performance Goals Target) Target) Target) Total Achieved
Adjusted Cash Metric Aligned with $1.422 billion $2.187 billion $2.351 billion $2.506 billion
50% Gross Profit* February Guidance (0%) (100%) (230%) (230%)
30% SG&A as a % of Metric Aligned with 8.00% 7.00% 6.65% 6.60%
Total Revenue** February Guidance (0%) (100%) (230%) (230%)
20% Safety & ESG Execution of Safety: Complete Safety: 1 World Safety: 2 World Safety: Achieved
Performance Identified Safety & 1 Safety Activity; Class Metric Class Metrics 2 World Class
ESG Activities, World ESG: Submit to ESG: Submit to ESG: Submit to Metrics and
Class LTIR & TIIR 1 key public 2 key public 3 key public formed Safety
index (50%) indices (100%) indices (230%) Task Force;
ESG: Submitted
to 4 key public
indices (230%)

* Adjusted Cash Gross Profit reflects sales growth and profitability and is correlated to share price. Adjustments to Cash Gross Profit
would include non-recurring expenses, such as acquisition and discontinued operations expenses.
** SG&A as a Percentage of Total Revenue incentivizes management to properly balance SG&A investments to support business growth
and overall cost discipline.

Based on the Company’s Adjusted Cash Gross Profit of $2.506 billion and SG&A as a Percentage of Total Revenue of
6.60% in 2023, the maximum 230% payout was earned for the two financial metrics for the CEO and other NEOs. These
two metrics make up 80% of the incentive formula. For the remaining 20% of the incentive formula, the Company
achieved world-class safety metrics for the year and successfully executed its targeted sustainability activities. In response
to the Company’s achievements of our safety metrics and sustainability activities, a payout of 230% was determined by
the Committee. As a result of the 230% achieved for both financial metrics and 230% achieved for the safety and
sustainability metric, the total formulaic award percentage was 230%.

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