Page 66 - Proxy Statement - 2020

Executive Compensation / Option Exercises and Stock Vested

Retirement and Other Benefits Service on a ROTH individual retirement account on a before-tax
In order to maintain market competitive levels of compensation, basis and up to an additional 17% of pay on an after-tax basis
we provide retirement and other benefits to the named not to exceed a total of 25% of pay. We match 100% of the
executive officers and other employees. The benefits under the first 1% of pay and 50% of the next 5% of pay that is
defined benefit pension plan are more valuable for employees contributed by employees to the Savings and Investment Plan up
who remain with Martin Marietta for longer periods, thereby to Internal Revenue Service limitations. All contributions as well
furthering Martin Marietta’s objectives of retaining individuals as any matching contributions are fully vested upon
with more expertise in relevant areas and who can participate in contribution. Prior to 2015, the Company sponsored two
management development for purposes of executive succession defined contribution savings plans, the Performance Sharing
planning. All of Martin Marietta’s salaried employees in the Plan for salaried employees and the Savings and Investment Plan
United States are eligible to participate in the following for hourly employees generally. The two plans were merged in
retirement and other plans. The named executive officers 2014.
participate in the plans on the same terms as Martin Marietta’s
other salaried employees. Retiree Medical. Eligible salaried employees who commenced
employment with Martin Marietta prior to December 1, 1999
Pension Plan. We have a tax qualified defined benefit pension and who retire with at least 5 years of service are currently
plan (Pension Plan) under which eligible full-time salaried eligible for retiree medical benefits for life. Eligible salaried
employees of Martin Marietta who have completed five employees who commenced employment with Martin Marietta
continuous years of employment with Martin Marietta, including between December 1, 1999 and December 31, 2001 and who
the named executive officers, earn the right to receive certain retire with at least 15 years of service are currently eligible for
benefits upon retirement on a reduced basis at or after age 55 retiree medical benefits until age 65. Eligible employees share
and on an unreduced basis at or after age 62. Retirement the cost of retiree medical based on their years of service and a
benefits are monthly payments for life based on a multiple of predetermined cap on total payments by Martin Marietta.
the years of service and the final average eligible pay for the five Employees who commenced employment with Martin Marietta
highest consecutive years in the last ten years before retirement, on or after January 1, 2002 are not eligible for retiree medical
less an offset for social security. The amount is equal to the sum benefits. Mr. Nye, Mr. Nickolas, Mr. LaTorre and Mr. Grant are
of (A), (B) and (C) below: not eligible for retiree medical benefits as each commenced
employment with Martin Marietta after 2002.
(A) 1.165% of the participant’s final average eligible pay up to
social security covered compensation, multiplied by the
Medical Insurance. Martin Marietta provides an opportunity to
participant’s credited years of service up to 35 years;
all of its salaried employees in the United States and the
(B) 1.50% of the participant’s final average eligible pay in employees’ immediate family members to select health, dental
excess of social security covered compensation, multiplied and vision insurance coverage. Martin Marietta pays a portion of
by the participant’s credited years of service up to 35 years; the premiums for this insurance for all employees. All employees
and in the United States, including the named executive officers, pay
a portion of the premiums depending on the coverage they
(C) 1.50% of the participant’s final average eligible pay
choose.
multiplied by the participant’s credited years of service in
excess of 35 years. Life and Disability Insurance. Martin Marietta provides to all
of its salaried employees in the United States, including the
Supplemental Excess Retirement Plan (SERP). We also have
named executive officers, long-term disability and life insurance
a non-qualified restoration plan that covers any employee in the
that provides up to 1.5 times base salary at no cost to the
defined benefit pension plan, including the named executive
employee. All of our employees in the United States, including
officers, who are highly compensated and whose qualified plan
the named executive officers, can choose additional coverage
benefit is reduced by Internal Revenue Code benefit or pay limits
and pay a portion of the premiums depending on the coverage
in Sections 415(b) and 401(a)(17). The plan is based on the same
they choose. In addition, Martin Marietta pays an amount equal
formula as the qualified Pension Plan described above. Benefits
to one year of base salary in the event of death of any active
under our nonqualified plan are paid from our general assets.
salaried employee.
Savings and Investment Plan. The Savings and Investment
Housing Allowance and Relocation Costs. Martin Marietta
Plan is a tax-qualified defined contribution retirement savings
provides relocation benefits, including a housing allowance, to
plan pursuant to which all employees in the United States,
certain employees upon their employment with Martin Marietta
including the named executive officers, are eligible to contribute
or in conjunction with a job relocation or promotion.
up to 25% or the limit prescribed by the Internal Revenue

62 2020 PROXY STATEMENT