Page 4 - Proxy Statement - 2020

Table of Contents

Proxy Summary .......................... 1 Performance-Based RSU Awards (45% of LTI
Award) ..................................... 49
The Board of Directors ................... 9 2019-2021 Performance Goals .................... 49
Board Committees ............................. 13 2017-2019 PSU Award Payouts ................... 51
Proposal 1 – Election of Directors .......... 17 Ongoing Corporate Governance Policies ............ 51
Director Compensation .......................... 22 Compensation Decision Process ................... 51
Compensation Program Risk Assessment ............ 53
Security Ownership of Certain Beneficial
Owners and Management ................ 24 Stock-Based Awards Generally .................... 53
Stock Ownership Requirements ................... 53
Delinquent Section 16(a) Reports .................. 25
Anti-Hedging and Pledging Policy ................. 54
Corporate Governance Matters ............ 26 Clawback Policy ............................... 54
Corporate Governance Philosophy ................. 26 Our Use of Independent Compensation Consultants . . 54
Proposal 2 – Independent Auditors ......... 31 Practice Regarding Timing of Equity Grants .......... 55
Perquisites .................................... 55
Summary of Fees ............................... 31
Retirement and Other Benefits .................... 55
Pre-Approval Policies and Procedures ............... 31
Potential Payments upon Termination or Change of
Audit Committee Review ........................ 31
Control ...................................... 56
Audit Committee Report .................. 32 Tax and Accounting Implications .................. 56
Management Development and Executive Compensation .................. 57
Compensation Committee Report .......... 33 Executive Officer Compensation ................... 57

Compensation Committee Interlocks and Summary Compensation Table .................... 57
Insider Participation in Compensation Grants of Plan-Based Awards ..................... 59
Decisions ............................... 33 Outstanding Equity Awards at Fiscal Year-End ........ 60

Compensation Discussion and Analysis ...... 34 Option Exercises and Stock Vested ................. 61
Introduction .................................. 34 Pension Benefits ............................... 63
Executive Summary ............................. 35 Potential Payments Upon Termination or Change
of Control .................................... 64
Shareholder Engagement and Feedback on 2019 Say
On Pay ....................................... 35 CEO Pay Ratio Disclosure ........................ 67
Our 2019 Performance .......................... 36 Proposal 3 – Advisory Vote on the
Safety, Environment and Sustainability .............. 37 Compensation of Our Named Executive
Officers ................................ 68
Components of Executive Compensation -
Performance-Related Compensation ............... 40
Securities Authorized for Issuance Under
Pay Decisions and Compensation Governance Equity Compensation Plans ............... 69
Practices ..................................... 41
Description of the TXI Legacy Plan ................. 69
2019 Chairman, President and CEO
Compensation ................................. 42 Description of the Deferred Compensation Plan ...... 70
CEO Target Opportunity Mix ..................... 42 Annual Meeting and Voting Information . . . 71
Determination of CEO Compensation .............. 42
Incorporation by Reference ............... 73
2019 Named Executive Officers’ Compensation - Our
Compensation Strategy ......................... 42
Shareholders’ Proposals for 2021
Considerations Regarding 2019 Compensation ....... 45 Annual Meeting ......................... 73
2019 Base Salary ............................... 45
Appendix A – Martin Marietta Guidelines
2019 Annual Cash Incentive Goals and Results ....... 46
for Potential New Board Members .........A-1
2019 Long-Term Incentive Compensation Overview . . . 48
PSU Awards (55% of LTI Award) .................. 48 Appendix B – Non-GAAP Measures .........B-1
Selection of Relative TSR ......................... 49

2020 PROXY STATEMENT