Page 56 - Martin Marietta - 2025 Proxy Statement

SUMMARY OF OUR COMPENSATION CONSIDERATIONS /

The Company’s solid performance in 2024 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.

The Committee also believes it is important to ensure that our Company and business model are resilient and robust under
challenging circumstances, regardless of whether factors impacting specific performance 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. 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.

The Committee has determined not to apply any multiplier in the Resilience Scorecard to executive compensation
in 2024, nor did it make any adjustments to executive compensation based on the Scorecard.

Category Resilience Assessment Criteria
1. Employees • Act effectively to keep employees safe and productive through appropriate protocols, consistent
with medical and occupational experts, including cleaning protocols, access to vaccinations,
provision of comprehensive benefits, education and other programs
• Effectively and promptly communicate and manage current guidance and instructions, change and
disruption to employees through communications, digital boards, direct emails, and other outreach
• Continuously promote the company’s exceptional retirement benefit program to strengthen our
employee retention efforts
• Offer opportunities for continued employee growth, development, and engagement
• Execute successful integrations of acquisitions while successfully completing divestitures of
non-core cement, downstream and other businesses
• Maintain succession and workforce planning efforts and employee attraction and retention results
in the face of a significantly challenging employment environment
2. Operations & • Respond proactively to challenges in the supply chain environment (including those related to
Commercial extraordinary weather, logistics challenges, economic pressures, and other factors)
Excellence
• Effectively manage through a continuing inflationary environment through a product pricing
strategy that ensures that the value for our products is properly captured while seeking to reduce
the supply chain inflationary impact
• Take steps to appropriately manage fixed and variable costs
3. Financial • Optimize revenues and cash management/liquidity without jeopardizing the future
• Protect the balance sheet and allocate capital responsibly, including with regard to internal
projects, transactions, dividends, debt and share repurchases
4. Customers/ • Ensure on-time delivery of projects
Suppliers
• Effectively manage inventory to satisfy customer needs
• Communicate operating status and preventative measures being taken during extraordinary events
5. Strategy • Successful execution of M&A actions and SOAR
• Maintaining Company long-term vision and strategic direction
• Actions taken to ensure continuation and execution of strategic transactions

50 2025 PROXY STATEMENT