Page 44 - Proxy Statement - 2020

Compensation Discussion and Analysis / Safety, Environment and Sustainability

Community Relations
Another core value for which we are recognized by NSSGA is individual producer’s aggregates operations in particular. In 2019,
community. The NSSGA Community Relations Awards program our Texas Quarry (MD) won gold, while St. Cloud Quarry (MN)
recognizes aggregates producers whose community involvement and Berkeley Quarry (SC) took home silver, while fifteen. Fifteen
and support activities enhance the public perception of the Martin Marietta sites received bronze.
aggregates industry in general and the public image of the
Environmental Stewardship
Environmental stewardship is another of our core values and our environmental and regulatory requirements. In addition, in order
operations were well-represented among the NSSGA to be eligible for the award, the operation must certify its
Environmental Excellence Award winners. These awards compliance with all applicable governmental environmental
provide national recognition for operations actively contributing to regulatory requirements and that it does not have a pattern of
the maintenance of the environment in and around their violations during the time period of two full years prior to the date
operations as evidenced by a commitment to the exemplary use of of application. Benson Quarry (NC) won gold, while Bonds Quarry
environmental controls and systems. This award is based, in part, (NC), Midlothian Quarry (VA), Medford Quarry (MD), Bridgeport
on the extent to which an operation meets and exceeds technical Stone (TX) and Tin Top Sand & Gravel (TX) received silver.
Ethical Business Conduct

We strive to continually enhance our high standards and controls amendments applicable to any Board member or executive officer
for ethical business conduct, compliance and transparency. Our in 2019.
Code of Ethical Business Conduct (our Code of Conduct)
applies to all of our employees, Board members, consultants,
contract laborers and other agents when they represent or act on
behalf of the Company. It describes our expectations and policies
on a number of topics, including our commitments to compliance
with laws, protection of human rights, maintenance of accurate
business records, transparency in our public disclosures, protection
of sensitive information, promotion of a positive and safe work
environment, zero tolerance for corruption and general avoidance
of even the appearance of impropriety in all that we do. Our Code
of Conduct also emphasizes employees’ responsibility to report
any violation or suspected violation of the Code of Conduct and
emphasizes the Company’s non-retaliation policy. In 2019, we
provided ethics training to all salaried employees. There were no
waivers from any provisions of our Code of Conduct or

Components of Executive Compensation – Performance-Related Compensation

Each NEO is eligible for a mix of fixed and variable components of compensation. A substantial portion of our CEO’s and other executive
officers’ compensation is at risk and will vary depending upon our performance. All of the opportunities to achieve long-term equity
incentives (LTI) granted to our CEO and other executive officers in 2019 were performance-related consisting of performance share unit
awards (PSUs) that comprised 55% of the long-term equity awards and performance-related restricted stock unit awards (RSUs) that
comprised 45% of the awards. The following charts summarize the various forms of compensation and demonstrate that in 2019 87%
of the CEO’s compensation and approximately 80% of other NEO compensation is variable and tied to company performance.

CEO COMPENSATION MIX OTHER NEO COMPENSATION MIX

Performance-Based
13 %
Salary 26 %
Salary
53 % 41 %
Long-Term 34 % Long-Term Performance-Based
Equity Annual Equity
Incentive Cash Incentive
Incentive
33 %
Annual
Cash
Incentive

40 2020 PROXY STATEMENT