Page 47 - Proxy Statement - 2020

2019 Named Executive Officers’ Compensation – Our Compensation Strategy / Compensation Discussion and Analysis

• Reward performance that meets or exceeds established goals consistent with our strategic aims and upholding integrity.
• Align individual objectives with the Company’s objectives without fostering excessive or inappropriate risk-taking.

• Encourage an ownership mentality and align the long-term financial interests of our executives with those of our shareholders.
• Be market competitive with our peers with whom we compete for talent.
• Provide reward systems that are measurable and easily understood by our managers and shareholders.
• Reinforce the succession planning process undertaken on a company-wide basis by building bench strength and by identifying
and retaining senior leadership, both capable of achieving the Company’s long-term growth, profitability and other objectives.

In 2019, our executive compensation structure consisted of three primary components: base salary, annual incentives, and long-term
incentives. Within the long-term incentive component, we utilized a balanced portfolio of PSUs and performance-based RSUs.

TOTAL COMPENSATION OPPORTUNITY

Long-Term Annual
Base Salary
Incentives Incentives

PSUs - 55% of Award RSUs - 45% of Award
Vesting and size based Vesting is conditioned on
on Martin Marietta performance measured after
performance level year 1 and then continued
employment over the
three-years that the
awards vest

Martin Marietta has a long-standing commitment to pay for ultimately received vary in order to best reflect our financial,
performance. We fulfill that aim by providing a majority of operational and strategic performance.
compensation through programs in which the amounts

2020 PROXY STATEMENT 43