Page 90 - Martin Marietta - 2024 Proxy Statement

CEO PAY RATIO DISCLOSURE /

2 Assumes all earned base salary has been paid.
3 Reflects the estimated lump-sum intrinsic value of all unvested RSUs.
4 Reflects the difference between the value of the unvested Incentive Stock Plan share units at year-end and the amount of cash invested by the executive officer in the share
units.
5 Reflects the estimated lump-sum intrinsic value of all unvested PSUs.
6 The table does not include information related to the form and amount of payments or benefits that are not enhanced or accelerated in connection with any termination
that would be provided by Martin Marietta’s retirement plans, which is disclosed in the Pension Benefits Table and the accompanying narrative on page 80. Change of
Control values include the incremental value of the benefit (including three times Martin Marietta’s match to the defined contribution plan) payable upon a qualifying
termination of employment following a Change of Control.
7 Reflects the estimated incremental lump-sum present value of all future premiums that would be paid on behalf of the named executive officer under Martin Marietta’s
health and welfare plans, including long-term disability and life insurance plans.

Required Pay Disclosures

CEO Pay Ratio Disclosure
The Company is required to disclose in its Proxy Statement the annual total compensation of the median-compensated
employee of, generally, all Company employees (excluding the CEO), the annual total compensation of its CEO, and the
ratio of the CEO compensation to the median employee’s compensation.

In 2023, the Company employed approximately 9,400 employees that were located primarily in the United States with a
limited number of employees in Canada and The Bahamas.
The median compensated employee in 2023 was identified using a consistently applied compensation measure,
encompassing base salary, overtime, and incentive compensation with a performance period of one year or less (such as
annual incentives and sales or other bonuses). As allowed under the SEC rules, base pay was annualized for employees
hired during the year to reflect a full year of service and the de minimis exemption was applied to exclude approximately
80 employees located in Canada and The Bahamas.

We determined the required ratio by:
• calculating the compensation based on a consistently applied measure as described above of all employees except the
CEO, and then sorting those employees from highest to lowest;

• determining the median employee from that list, including evaluating employees situated slightly above and below the
calculated median to ensure the selected employee reflects our population as a whole; and
• calculating the total annual compensation of our CEO and of the median-compensated employee using the same
methodology required for the Summary Compensation Table.

The total annual compensation for our CEO for fiscal year 2023 was $18,488,885. The total annual compensation in 2023
for the median-compensated employee was $99,816. The resulting ratio of CEO pay to the pay of our median-
compensated employee for fiscal year 2023 is 185 to one.

This pay ratio is a reasonable estimate calculated in a manner consistent with SEC rules based on our payroll and
employment records and the methodology described above. Because the SEC rules for identifying the median-
compensated employee and calculating the pay ratio based on that employee’s annual total compensation allow
companies to adopt a variety of methodologies, to apply certain exclusions, and to make reasonable estimates and
assumptions that reflect their compensation practices, the amount of compensation of the median-compensated employee
and the pay ratio reported by other companies may not be comparable to our estimates reported above, as other
companies may have different employment and compensation practices and may utilize different methodologies,
exclusions, estimates and assumptions in calculating their own pay ratios.

84 2024 PROXY STATEMENT