PRELIMINARY COPY - SUBJECT TO COMPLETION Marathon Petroleum Corporation intends to release definitive copies of the Proxy Statement to shareholders on or about March | |||||||||||||||||||||||||||||||||||
| NOTICE OF | ||||||||||||||||||||||||||||||||||
| You are invited to attend Marathon Petroleum Corporation’s | ||
DATE AND TIME | AGENDA | ||||||||||||||||||||||
| Wednesday, April | |||||||||||||||||||||||
| 1. Elect the four director nominees for Class | |||||||||||||||||||||||
| 10 a.m. Eastern Daylight Time | 2. Ratify the appointment of our independent auditor for | ||||||||||||||||||||||
| 3. Approve, on an advisory basis, our named executive officer compensation | |||||||||||||||||||||||
| LOCATION | 4. | ||||||||||||||||||||||
The meeting will be held virtually at: www.virtualshareholder meeting.com/MPC2024 | |||||||||||||||||||||||
| 5. Approve an amendment to the Certificate of Incorporation to provide for officer exculpation | |||||||||||||||||||||||
| 6. Approve an amendment to the Certificate of Incorporation to declassify the Board of Directors | |||||||||||||||||||||||
| þ | Your vote is important. Even if you plan to attend the virtual Annual Meeting, please vote as soon as possible using one of the following options: | ||||||||||||||||||||||
 |  |  | |||||||||||||||||||||
| Via the Internet: | Call Toll-Free: | Mail Signed Proxy Card: | |||||||||||||||||||||
| Follow the instructions in the Notice, proxy card or voting instruction form. | Call the toll-free number on your proxy card or voting instruction form. | Follow the instructions on your proxy card or voting instruction form. | |||||||||||||||||||||
Shareholders of record at the close of business on | ||
We provide our proxy materials, including our Proxy Statement and Annual Report, over the internet. This expedites your receipt of proxy materials, conserves natural resources and lowers the cost of the meeting. On or about March | ||
| We thank you for your continued support and look forward to your attendance at our virtual Annual Meeting. | ||
| By order of the Board of Directors, | |||||||||||||||||||||||
 | |||||||||||||||||||||||
Molly R. Benson | |||||||||||||||||||||||
| IMPORTANT NOTICE REGARDING THE INTERNET AVAILABILITY OF PROXY MATERIALS: | |||||||||||||||||||||||
The Proxy Statement and Marathon Petroleum Corporation’s | |||||||||||||||||||||||
| TABLE OF CONTENTS | ||
| INDEX OF FREQUENTLY REQUESTED INFORMATION | GLOSSARY OF TERMS AND ACRONYMS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Auditor fees | ACB | Annual Cash Bonus program | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Board diversity | Annual Meeting | Marathon Petroleum Corporation’s 2024 annual meeting of shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Board, committee and individual director evaluations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Board | Board of Directors, Marathon Petroleum Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Board leadership structure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Board meeting director attendance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bylaws | Amended and Restated Bylaws of Marathon Petroleum Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CEO pay ratio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clawback policy | CD&A | Compensation discussion and analysis | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Codes of conduct and ethics | CEO | Chief Executive Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Committees of the Board | CFO | Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Communicating with the Board | Company | Marathon Petroleum Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Compensation reference group | DCF | Distributable cash flow at MPLX LP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Director biographies | DGCL | Delaware General Corporation Law | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Director board commitments | ERM | Enterprise risk management | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Director compensation table | ESG | Environmental, social and governance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Director independence | Exchange Act | Securities Exchange Act of 1934, as amended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Director skills, expertise and composition matrix | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | Generally Accepted Accounting Principles in the United States | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Executive compensation mix | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Human capital management | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GHG | Greenhouse gas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Independent Chairman of the Board | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LTI | Long-term incentive | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Just transition report | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marathon | Marathon Petroleum Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oversight of climate risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPC | Marathon Petroleum Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oversight of cybersecurity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | MPLX LP | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oversight of human capital management and succession planning | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NEO | Named executive officer | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NYSE | New York Stock Exchange | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oversight of political engagement and public policy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | Performance share units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oversight of risk management | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PwC | PricewaterhouseCoopers LLP | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prohibition on hedging and pledging | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | Restricted stock units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proxy access | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEC | U.S. Securities and Exchange Commission | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related party transactions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TSR | Total shareholder return | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Say-on-pay | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholder engagement program | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholder proposals and nominees for the 2025 annual meeting | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROXY STATEMENT SUMMARY | ||||||||||||||||||||||||||||||||||||||
| This summary highlights information contained in this Proxy Statement, which is first being sent or made available to shareholders on or about March | ||||||||||||||||||||||||||||||||||||||
| Annual Meeting and Voting Information | ||||||||||||||||||||||||||||||||||||||
 |  |  |  | |||||||||||||||||||||||||||||||||||
| DATE AND TIME | LOCATION | RECORD DATE | VOTING | |||||||||||||||||||||||||||||||||||
| Wednesday, April | The Annual Meeting will be held virtually at: www.virtualshareholder meeting.com/ | Only holders of record of MPC’s common stock as of the record date will be entitled to notice and to vote | ||||||||||||||||||||||||||||||||||||
| 10 a.m. EDT | Shares outstanding: | |||||||||||||||||||||||||||||||||||||
MPC’s See “FAQs About Voting and the Annual Meeting” beginning on page | ||||||||||||||||||||||||||||||||||||||
| Voting Items | ||||||||||||||||||||||||||||||||||||||
Your vote is important. Please vote your proxy promptly so that your shares can be represented, even if you plan to attend the virtual Annual Meeting. You can vote via the internet or telephone by following the voting procedures described in the Notice, proxy card or voting instruction form, or by returning your completed and signed proxy card or voting instruction form in the provided envelope. | ||||||||||||||||||||||||||||||||||||||
| Proposal | Page Reference | Board Recommendation | ||||||||||||||||||||||||||||||||||||
Proposal 1. Elect four director nominees to Class | FOR each nominee | |||||||||||||||||||||||||||||||||||||
Proposal 2. Ratify the appointment of our independent auditor for | FOR | |||||||||||||||||||||||||||||||||||||
Proposal 3. Approve, on an advisory basis, our named executive officer compensation | FOR | |||||||||||||||||||||||||||||||||||||
Proposal 4. | 1 YEAR | |||||||||||||||||||||||||||||||||||||
Proposal 5. Approve an amendment to the Certificate of Incorporation to provide for officer exculpation | FOR | |||||||||||||||||||||||||||||||||||||
Proposal 6. Approve an amendment to the Certificate of Incorporation to declassify the Board of Directors | FOR | |||||||||||||||||||||||||||||||||||||
Proposal | ||||||||||||||||||||||||||||||||||||||
| FOR | ||||||||||||||||||||||||||||||||||||||
| AGAINST | ||||||||||||||||||||||||||||||||||||||
| Additional Information | ||||||||||||||||||||||||||||||||||||||
Our principal executive offices are located at 539 South Main Street, Findlay, OH 45840, and our telephone number is (419) 422-2121. Our website address is | ||||||||||||||||||||||||||||||||||||||
| References throughout this Proxy Statement to | ||||||||||||||||||||||||||||||||||||||
| 1 | ||||||||
| PROXY STATEMENT SUMMARY | ||
| About Marathon Petroleum Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||
| With more than 135 years in the energy industry, Marathon Petroleum Corporation (NYSE: MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. | ||||||||||||||||||||||||||||||||||||||||||||||||||
We and our employees are focused on doing our part to meet the | ||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL SHAREHOLDER RETURN | EARNINGS | |||||||||||||||||||||||||||||||||||||||||||||||||
  | $ | net income attributable to MPC | ||||||||||||||||||||||||||||||||||||||||||||||||
| ADJUSTED EBITDA* | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | adjusted earnings before interest, taxes, depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||||||||||
| CASH FROM OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | net cash from operations | |||||||||||||||||||||||||||||||||||||||||||||||||
| SHAREHOLDER VALUE | ||||||||||||||||||||||||||||||||||||||||||||||||||
| ~ | $ | $ | $5.0 billion | |||||||||||||||||||||||||||||||||||||||||||||||
| increase in our quarterly dividend (from | in dividends paid to shareholders in 2023 | of capital returned to shareholders through share repurchases | additional repurchase authorization (announced in | |||||||||||||||||||||||||||||||||||||||||||||||
| PROGRESS ON RENEWABLES | RECOGNITION | |||||||||||||||||||||||||||||||||||||||||||||||||
Produced nearly 149 million gallons of renewable diesel at our Dickinson, ND, renewable diesel facility 2024 capital plan allocates ~40% of MPC’s growth capital to renewables and carbon-reduction projects | Member of Dow Jones Sustainability North America Index for | |||||||||||||||||||||||||||||||||||||||||||||||||
Energy Star® Partner of the Five MPC refineries earned EPA Energy Star certifications in 2023. Since refineries first became eligible for Energy Star certification in 2006, MPC has earned more certifications than all other refining companies combined. | ||||||||||||||||||||||||||||||||||||||||||||||||||
| *NON-GAAP FINANCIAL MEASURE | ||||||||||||||||||||||||||||||||||||||||||||||||||
| “Adjusted EBITDA” is not a measure of financial performance under | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2 | Marathon Petroleum Corporation | |||||||
| PROXY STATEMENT SUMMARY | ||
| Overview of Our Board of Directors | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |  |  |  |  |  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Abdulaziz F. Alkhayyal | Evan Bayh | Charles E. Bunch | Jonathan Z. Cohen | Edward G. Galante | Michael J. Hennigan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |  |  |  |  |  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kim K.W. Rucker | Frank M. Semple | J. Michael Stice | John P. Surma | Susan Tomasky | Toni Townes-Whitley | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Director Since | Committee Memberships | Other Current Public Company Boards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Name | Age* | Independent | Occupation | A | C | G | S | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alkhayyal | 69 | 2016 | ü | Retired Senior Vice President, Industrial Relations, Saudi Aramco | ¡ | ¡ | ¤ | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bayh | 67 | 2011 | ü | Senior Advisor, Apollo Global Management | ¡ | µ | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bunch | 73 | 2015 | ü | Retired Chairman and CEO, PPG Industries | ¡ | µ | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cohen | 52 | 2019 | ü | Founder, CEO and President, Hepco Capital Management, LLC | ¤ | ¡ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galante | 72 | 2018 | ü | Retired Senior Vice President and Management Committee Member, ExxonMobil Corporation | µ | ¡ | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | 63 | 2020 | CEO | President and CEO, Marathon Petroleum Corporation | ¡ | 2** | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rucker | 56 | 2018 | ü | Former Executive Vice President, General Counsel and Secretary, Andeavor | ¡ | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Semple | 71 | 2021 | ü | Retired Chairman, President and CEO, MarkWest Energy Partners, L.P. | ¡ | ¡ | 1** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stice | 64 | 2017 | ü | Professor, The University of Oklahoma | ¡ | ¤ | ¡ | 1** | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Surma | 68 | 2011 | ü | Chairman of the Board, Marathon Petroleum Corporation | INDEPENDENT CHAIRMAN | 3** | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tomasky | 70 | 2018 | ü | Retired President, AEP Transmission | µ | ¡ | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Townes-Whitley | 59 | 2023 | ü | Former President, U.S. Regulated Industries, Microsoft Corporation | ¡ | ¡ | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A | Audit Committee | C | Compensation and Organization Development Committee | G | Corporate Governance and Nominating Committee | S | Sustainability and Public Policy Committee | µ | Chair | ¤ | Vice Chair | ¡ | Member | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * As of April 26, 2023. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ** Includes service on the board of directors of MPLX GP LLC, a wholly owned subsidiary of MPC. Under our Corporate Governance Principles, concurrent service on the boards of MPC and MPLX GP LLC is counted as one public company board for purposes of assessing the level of public company board commitments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 | IN MEMORIAM – STEVEN A. DAVIS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
We were deeply saddened by the death of our friend and colleague, Steven A. Davis, in July 2022. Mr. Davis served on the Board for nine years, and we remain grateful for his thoughtful leadership in many areas, including corporate governance and corporate responsibility. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Overview of Our Board of Directors | |||||||||||||||||||||||||||||||||||||||||||||||
Age (as of April 24, 2024) | Director Since | Committee Memberships | Other Current Public Company Boards | ||||||||||||||||||||||||||||||||||||||||||||
| Name and Principal Occupation | Independent | A | C | G | S | ||||||||||||||||||||||||||||||||||||||||||
 | Abdulaziz F. Alkhayyal Retired Senior Vice President, Industrial Relations, Saudi Aramco | 70 | 2016 | ü | ¡ | ¡ | ¤ | 2 | |||||||||||||||||||||||||||||||||||||||
 | Evan Bayh Senior Advisor, Apollo Global Management | 68 | 2011 | ü | ¡ | µ | 3 | ||||||||||||||||||||||||||||||||||||||||
 | Charles E. Bunch Retired Chairman and CEO, PPG Industries, Inc. | 74 | 2015 | ü | ¡ | µ | 1 | ||||||||||||||||||||||||||||||||||||||||
 | Jonathan Z. Cohen Founder, CEO and President, Hepco Capital Management, LLC | 53 | 2019 | ü | ¤ | ¡ | — | ||||||||||||||||||||||||||||||||||||||||
 | Eileen P. Drake Former CEO and President, Aerojet Rocketdyne Holdings, Inc. | 58 | 2024 | ü | ¡ | ¡ | 1 | ||||||||||||||||||||||||||||||||||||||||
 | Kimberly Ellison-Taylor Former Executive Director, Finance Thought Leadership, Oracle Corporation | 54 | 2024 | ü | ¡ | ¡ | 2 | ||||||||||||||||||||||||||||||||||||||||
 | Edward G. Galante Retired Senior Vice President and Management Committee Member, ExxonMobil Corporation | 73 | 2018 | ü | µ | ¡ | 2 | ||||||||||||||||||||||||||||||||||||||||
 | Michael J. Hennigan CEO, Marathon Petroleum Corporation | 64 | 2020 | CEO | ¡ | 2 | * | ||||||||||||||||||||||||||||||||||||||||
 | Kim K.W. Rucker Former Executive Vice President, General Counsel and Secretary, Andeavor | 57 | 2018 | ü | ¡ | ¤ | ¡ | 3 | |||||||||||||||||||||||||||||||||||||||
 | Frank M. Semple Retired Chairman, President and CEO, MarkWest Energy Partners, L.P. | 72 | 2021 | ü | ¡ | ¡ | 1 | * | |||||||||||||||||||||||||||||||||||||||
 | J. Michael Stice Professor, The University of Oklahoma | 65 | 2017 | ü | ¡ | ¤ | ¡ | 2 | * | ||||||||||||||||||||||||||||||||||||||
 | John P. Surma Chairman of the Board, Marathon Petroleum Corporation | 69 | 2011 | ü | INDEPENDENT CHAIRMAN OF THE BOARD | 3 | * | ||||||||||||||||||||||||||||||||||||||||
 | Susan Tomasky Retired President, AEP Transmission | 71 | 2018 | ü | µ | ¡ | 2 | ||||||||||||||||||||||||||||||||||||||||
| * Includes service on the board of directors of MPLX GP LLC, a wholly owned subsidiary of MPC. Our Corporate Governance Principles count concurrent service on the boards of MPC and MPLX GP LLC as one public company board for purposes of assessing the level of public company board commitments. | A | Audit Committee | µ | Chair | |||||||||||||||||||||||||||||||||||||||||||
| C | Compensation and Organization Development Committee | ¤ | Vice Chair | ||||||||||||||||||||||||||||||||||||||||||||
| G | Corporate Governance and Nominating Committee | ¡ | Member | ||||||||||||||||||||||||||||||||||||||||||||
| S | Sustainability and Public Policy Committee | ||||||||||||||||||||||||||||||||||||||||||||||
| 3 | ||||||||
| PROXY STATEMENT SUMMARY | ||
| Composition of Our Board | |||||||||||||||||||||||
| INDEPENDENT BOARD | BOARD DIVERSITY | ||||||||||||||||||||||
 |  | ||||||||||||||||||||||
| Women | |||||||||||||||||||||||
 | |||||||||||||||||||||||
| Racial/Ethnic Diversity and Native American Tribal Membership | |||||||||||||||||||||||
11 of 12 Directors are Independent | 42% Diverse | ||||||||||||||||||||||
| DIRECTOR TENURE | DIRECTOR AGE | ||||||||||||||||||||||
 |  | ||||||||||||||||||||||
| Year-Round Shareholder Engagement | |||||||||||||||||||||||
| We believe that regular dialogue with, and accountability to, our shareholders is critical to our success. Our management team participates in numerous investor meetings throughout the year to discuss our business and strategic priorities. Our core shareholder engagement team includes senior members of our investor relations, corporate governance, human resources and sustainability teams, supplemented by our Chief Executive Officer, Chief Financial Officer and Board Chair or other directors, as appropriate. These meetings include in-person, telephone and webcast engagements, as well as investor conferences and our annual meeting of shareholders. Shareholder feedback provides our Board and management with valuable insights on our business strategy and performance, corporate responsibility, executive compensation, sustainability initiatives and many other topics. | |||||||||||||||||||||||
| FALL ENGAGEMENT | PROXY STATEMENT | ||||||||||||||||||||||
| Our shareholder engagement team solicits and receives feedback from shareholders on governance practices and trends, Board composition, executive compensation, sustainability, human capital management and other shareholder priorities | ð | The Board uses shareholder feedback gathered from fall engagement to enhance disclosures and revise governance practices, the executive compensation program, sustainability practices or other programs and policies, as appropriate | |||||||||||||||||||||
| ñ | ò | ||||||||||||||||||||||
| ANNUAL MEETING | SPRING ENGAGEMENT | ||||||||||||||||||||||
| We receive and publish voting results from our annual meeting, which help shape our ongoing improvements and developments in governance practices, executive compensation, sustainability and other shareholder interest areas | ï | Our shareholder engagement team conducts additional outreach with shareholders to provide updates on changes made in response to shareholder feedback and to address management and shareholder proposals, as well as other topics of interest | |||||||||||||||||||||
During 2022, our shareholder engagement team: | |||||||||||||||||||||||
| Proactively reached out to shareholders representing | Met with shareholders representing | Conducted additional email outreach with major updates such as topical news releases and reports | |||||||||||||||||||||
| 71% | 41% | ||||||||||||||||||||||
| of our outstanding shares | of our outstanding shares | ||||||||||||||||||||||
| Composition of Our Board | |||||||||||||||||||||||||||||||||||
| INDEPENDENT BOARD | BOARD DIVERSITY | ||||||||||||||||||||||||||||||||||
 |  | ||||||||||||||||||||||||||||||||||
 | |||||||||||||||||||||||||||||||||||
| Women | |||||||||||||||||||||||||||||||||||
 | |||||||||||||||||||||||||||||||||||
Racial/Ethnic Diversity and Native American Tribal Membership | |||||||||||||||||||||||||||||||||||
12of 13Directors are Independent | 46%Diverse | ||||||||||||||||||||||||||||||||||
| DIRECTOR TENURE | DIRECTOR AGE | ||||||||||||||||||||||||||||||||||
 |  | ||||||||||||||||||||||||||||||||||
| Year-Round Shareholder Engagement | |||||||||||||||||||||||||||||||||||
| We believe that regular dialogue with, and accountability to, our shareholders is critical to our success. Our management team participates in numerous investor meetings throughout the year to discuss our business and strategic priorities. Our core shareholder engagement team includes senior members of our investor relations, corporate governance, human resources and sustainability teams, supplemented by our CEO, CFO and Board Chair or other directors, as appropriate. These meetings include in-person, telephone and webcast engagements, as well as investor conferences and our annual meeting of shareholders. Shareholder feedback provides our Board and management with valuable insights on our business strategy and performance, corporate responsibility, executive compensation, sustainability initiatives and many other topics. | |||||||||||||||||||||||||||||||||||
| FALL ENGAGEMENT | PROGRAM ENHANCEMENT | ||||||||||||||||||||||||||||||||||
| Our shareholder engagement team solicits and receives feedback from shareholders on governance practices and trends, Board composition, executive compensation, sustainability, human capital management and other shareholder priorities. | ð | The Board uses shareholder feedback to enhance disclosures, including in our proxy statement and sustainability reporting, and revise governance practices, the executive compensation program, sustainability practices or other programs and policies, as appropriate. | |||||||||||||||||||||||||||||||||
| ñ | ò | ||||||||||||||||||||||||||||||||||
| ANNUAL MEETING | SPRING ENGAGEMENT | ||||||||||||||||||||||||||||||||||
| We receive and publish voting results from our annual meeting, which help shape our ongoing improvements and developments in governance practices, executive compensation, sustainability and other shareholder interest areas. | ï | Our shareholder engagement team conducts additional outreach with shareholders to provide updates on changes made in response to shareholder feedback and to address management and shareholder proposals, as well as other topics of interest. | |||||||||||||||||||||||||||||||||
| 2023 Shareholder Engagement Program | |||||||||||||||||||||||||||||||||||
| Outreach to: | One-on-One Meetings with: | Additional Ways We Engaged: | |||||||||||||||||||||||||||||||||
Shareholders representing 70% of our outstanding shares | Shareholders representing 43% of our outstanding shares | •Quarterly earnings calls •Industry presentations and conferences •Email updates such as topical news releases and reports •Thematic engagements | |||||||||||||||||||||||||||||||||
| 4 | Marathon Petroleum Corporation | |||||||
| PROXY STATEMENT SUMMARY | ||
| Governance Highlights | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Key Corporate Governance Practices | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Board of Directors believes that our commitment to strong corporate governance benefits all our stakeholders, including our shareholders, employees, business partners, customers, communities, governments and others who have a stake in how we operate. Our key corporate governance practices include: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BOARD INDEPENDENCE AND LEADERSHIP | SHAREHOLDER RIGHTS AND ENGAGEMENT | ESG | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Strong independent Chairman role reinforces effective independent leadership on the Board Three fully independent standing Board committees | Majority voting standard for uncontested director elections Demonstrated commitment to Board diversity Directors not elected by a majority of votes cast are subject to the Board’s resignation policy | Risk oversight by the full Board and its committees Independent directors meet regularly in executive session Annual Board and committee self-evaluations, and individual evaluations of nominees for reelection | Shareholder right to call a special meeting of shareholders Robust year-round shareholder engagement program | Strong oversight by the full Board and its Industry-leading disclosures on environmental targets and performance Extensive human capital management disclosures, including EEO-1 data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recent Governance Enhancements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| We believe good governance is critical to achieving long-term shareholder value. We approach governance in a strategic and thoughtful manner, taking into consideration multiple perspectives, including those of our Board, our Corporate Governance and Nominating Committee, our shareholders, experts and other stakeholders, to align on what makes the most sense for our Company. We continuously look for ways to enhance our corporate governance and increase value to our shareholders. Recent governance enhancements and actions include: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021- 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▶ | Submitting to our shareholders, for consideration at the 2024 Annual Meeting, an amendment to our Certificate of Incorporation providing for officer exculpation, as permitted under Delaware law | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▶ | Following approval from our shareholders, amended our Certificate of Incorporation to increase | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▶ | Revised our Corporate Governance Principles to affirmatively state the Board’s policy on director commitments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▶ | Following a thorough review of Board committee oversight responsibilities, amended our committee charters to adjust and clarify committee responsibilities, including for ESG oversight and stakeholder engagement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▶ | Elected an independent Chairman of the Board | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▶ | Submitted to our shareholders, for consideration at the 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▶ | Amended our Corporate Governance Principles to require individual director evaluations for directors whose terms expire at the next annual meeting and are eligible for reelection | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▶ | Amended our Bylaws to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▶ | Amended our Corporate Governance Principles to expressly affirm the Board’s commitment to actively seek diverse candidates for Board service | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▶ | Amended our Bylaws to eliminate the 80% supermajority requirement for Bylaw amendments approval threshold for Bylaw amendments is now a majority of outstanding shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▶ | Amended our Bylaws to provide proxy access for shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5 | ||||||||
| PROXY STATEMENT SUMMARY | ||
| Sustainability Highlights | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STRENGTHEN RESILIENCY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Strengthening our business for today, while building durability for the future | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Robust Suite of Climate-Related Targets and Accomplishments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy Star® Partner of the Year – Sustained Excellence, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
•Reported on our 2030 target to reduce absolute Scope 3 emissions •Progressed toward our 2030 methane emissions intensity reduction target •Advanced progress on our pipeline right-of-way biodiversity target |  | Our refineries have earned more ENERGY STAR certifications for energy efficiency than all other refineries in the U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diversified Portfolio |  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Largest natural gas processor in the U.S., facilitating approximately 250million tonnes of CO2e reductions per year from | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
* See our most recent Climate Report on our website for additional information on how we calculate GHG intensity and CO2e reductions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INNOVATE FOR THE FUTURE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investing in the energy evolution to lower carbon intensity and capture value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Renewable Fuels | Martinez, CA – Renewable Fuels Facility 50/50 Joint Venture | Dickinson, ND – Renewable Diesel Facility | Capital Allocation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Began producing renewable diesel | Produced nearly | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| in the |  | 149 million | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EMBED SUSTAINABILITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Embracing sustainability in decision-making, how we engage our people and how we create value with stakeholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Engaging Our Stakeholders and Communities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
  | •Strong safety management systems and | •Comprehensive approach to stakeholder engagement across the Company •Robust engagement with tribal stakeholders in our operational footprint |  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
American Fuel & Petrochemical Manufacturers (AFPM) Safety Awards Three MPC refineries recognized for top safety performance and innovation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
•Published Just Transition Report focused on the potential social impacts of the energy transition, and published a case study, “Working Toward a Just and Responsible Transition,” in our Sustainability Report •Regular dialogue with investor stewardship teams; reporting and disclosures aligned with TCFD, SASB, CDP and GRI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investing in Our Employees | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 •Offering competitive pay and benefits and extensive professional development opportunities •MPC employee average tenure of 10 years •4,000+ employees belong to our employee networkgroups | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leading in Sustainability | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 6 | Marathon Petroleum Corporation | |||||||
| PROXY STATEMENT SUMMARY | ||
| Executive Compensation Highlights | ||||||||||||||||||||||||||||||||||||||||||||
| Executive Compensation Guiding Principles | ||||||||||||||||||||||||||||||||||||||||||||
| We believe our executive compensation program plays a critical role in maximizing long-term value for our shareholders, employees and other stakeholders. Our executive compensation guiding principles are embodied in our executive compensation program and policies, which are designed to: | ||||||||||||||||||||||||||||||||||||||||||||
| v | Attract, retain, motivate and reward the highest-quality executive team by providing market-competitive compensation. | |||||||||||||||||||||||||||||||||||||||||||
| v | Be simple and transparent so they can be clearly communicated both internally and externally. | |||||||||||||||||||||||||||||||||||||||||||
| v | Create direct alignment between executive pay and the creation of shareholder value. | |||||||||||||||||||||||||||||||||||||||||||
| v | Reward for execution of our business strategy and desired culture. | |||||||||||||||||||||||||||||||||||||||||||
| v | Differentiate pay on the basis of performance, experience and skill set. | |||||||||||||||||||||||||||||||||||||||||||
| 2022 Target Compensation Mix | ||||||||||||||||||||||||||||||||||||||||||||
| The Compensation and Organization Development Committee believes using a mix of cash and equity compensation encourages and motivates our named executive officers (“NEOs”) to achieve both our short-term and long-term business objectives. Consistent with our guiding principles that executive compensation should reward for performance and be directly aligned with creating value for our shareholders, a substantial majority of our NEOs’ compensation is at-risk and based on performance metrics tied to our business strategy and culture. | ||||||||||||||||||||||||||||||||||||||||||||
| Base Salary | Annual Cash Bonus | MPC Performance Share Units | MPC Restricted Stock Units | MPLX Phantom Units | ||||||||||||||||||||||||||||||||||||||||
| CEO | 10% | 16% | 44% | 15% | 15% | |||||||||||||||||||||||||||||||||||||||
| 60% Performance-Based | 30% Time-Based | |||||||||||||||||||||||||||||||||||||||||||
| 90% At Risk | ||||||||||||||||||||||||||||||||||||||||||||
Other Current NEOs Average | Base Salary | Annual Cash Bonus | MPC Performance Share Units | MPC Restricted Stock Units | MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||
| 21% | 17% | 37% | 12.5% | 12.5% | ||||||||||||||||||||||||||||||||||||||||
| 54% Performance-Based | 25% Time-Based | |||||||||||||||||||||||||||||||||||||||||||
| 79% At Risk | ||||||||||||||||||||||||||||||||||||||||||||
“Performance-Based” means there is no guarantee that any value at all will be realized if the performance criteria are not met. | ||||||||||||||||||||||||||||||||||||||||||||
“At-Risk” means there is no guarantee that the target value will be realized. | ||||||||||||||||||||||||||||||||||||||||||||
| Leading Practices in Executive Compensation | ||||||||||||||||||||||||||||||||||||||||||||
| Our executive compensation program demonstrates our commitment to sound compensation and governance practices, promotes the objectives set forth in our guiding principles and serves our shareholders’ long-term interests. | ||||||||||||||||||||||||||||||||||||||||||||
| ü | Majority of total target compensation is performance-based | ü | Compensation and Organization Development Committee oversight of annual compensation risk assessment | |||||||||||||||||||||||||||||||||||||||||
| ü | Performance measures align with shareholder interests | |||||||||||||||||||||||||||||||||||||||||||
| ü | Significant stock ownership requirements | û | No guaranteed minimum bonus | |||||||||||||||||||||||||||||||||||||||||
| ü | Performance metric achievement capped at 200% | û | No excise tax gross-ups | |||||||||||||||||||||||||||||||||||||||||
| ü | Recoupment/clawback provisions for both long-term incentive (“LTI”) and short-term incentive awards | û | No tax gross-ups on perquisites (other than for relocation reimbursements in limited circumstances) | |||||||||||||||||||||||||||||||||||||||||
| ü | “Double trigger” LTI vesting in a change of control | û | Policy prohibiting hedging or pledging | |||||||||||||||||||||||||||||||||||||||||
| ü | ESG metrics tied to executive and employee compensation | û | No dividend equivalents paid on unvested awards | |||||||||||||||||||||||||||||||||||||||||
| ü | Limited perquisites and personal benefits | û | No repricing of stock options (no longer granted) | |||||||||||||||||||||||||||||||||||||||||
| Executive Compensation Highlights | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leading Executive Compensation Practices | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Our executive compensation program demonstrates our commitment to sound compensation and governance practices, promotes the objectives in our guiding principles and serves our shareholders’ long-term interests. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ü | Majority of total target compensation is performance-based | ü | Annual compensation risk assessment overseen by Compensation and Organization Development Committee | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ü | Performance measures align with shareholder interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ü | Significant stock ownership requirements | û | No guaranteed minimum bonuses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ü | Performance metrics achievement capped at 200% | û | No excise tax gross-ups | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ü | Clawback provisions for both long-term and short-term incentive awards | û | No tax gross-ups on perquisites (other than for relocation reimbursements in limited circumstances) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ü | “Double trigger” LTI vesting in a change of control | û | No dividend equivalents paid on unvested awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ü | Executive and employee compensation tied to financial and non-financial performance | û | Policy prohibiting executives from hedging or pledging our securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ü | Limited perquisites and personal benefits | û | Discontinued grants of stock options | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 Target Compensation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Compensation and Organization Development Committee believes using a mix of cash and equity compensation encourages and motivates our NEOs to achieve both our short-term and long-term business objectives. Consistent with our guiding principles that executive compensation should reward performance and be directly aligned with creating value for our shareholders, a substantial majority of our NEOs’ compensation is at-risk and based on performance metrics tied to our business strategy and culture. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Base Salary | Annual Cash Bonus | MPC Performance Share Units | MPC Restricted Stock Units | MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CEO | 10% | 16% | 44% | 15% | 15% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 60% Performance-Based | 30% Time-Based | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 90% At-Risk | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER NEOs Average | Base Salary | Annual Cash Bonus | MPC Performance Share Units | MPC Restricted Stock Units | MPLX Phantom Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 21% | 18% | 37% | 12% | 12% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 55% Performance-Based | 24% Time-Based | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 79% At-Risk | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Following is the target compensation for our NEOs under our 2023 executive compensation program. For additional information, see “Executive Compensation” beginning on page 35. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Named Executive Officers | Annual Base Salary ($) | Target ACB (%) | Target ACB ($) | Target Long-Term Incentives ($) | Total Target Compensation ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michael J. Hennigan President and CEO* | $1,750,000 | 165% | $2,887,500 | $13,400,000 | $18,037,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maryann T. Mannen Executive Vice President and CFO* | $1,000,000 | 110% | $1,100,000 | $4,000,000 | $6,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Timothy J. Aydt Executive Vice President Refining | $845,000 | 100% | $845,000 | $2,400,000 | $4,090,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Suzanne Gagle General Counsel and Senior Vice President Government Affairs* | $750,000 | 80% | $600,000 | $2,400,000 | $3,750,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gregory S. Floerke Executive Vice President and Chief Operating Officer of MPLX LP LLC | $620,000 | 70% | $434,000 | $1,300,000 | $2,354,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * Effective January 1, 2024, Ms. Mannen was elected President of MPC, and Mr. Hennigan ceased serving in that role. Mr. Hennigan continues to serve as our CEO. Effective January 5, 2024, Ms. Gagle retired following more than 30 years of service to MPC. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7 | ||||||||
| CORPORATE GOVERNANCE | ||
| Proposal 1. Election of Directors | ||
| ü | The Board of Directors recommends you vote FOR each of the following Class | ||||||||||||||||
| The Board of Directors, which oversees the management of our business and affairs, currently is divided into three classes of directors, with one class being elected each year for a three-year term. The Board has set the current number of directors at | ||
As informed by our individual director evaluation process discussed further on page | ||
| DIRECTOR SKILLS, EXPERTISE AND DEMOGRAPHIC MATRIX* |  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |  |  |  |  |  |  |  |  |  |  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DIRECTOR SKILLS, EXPERTISE AND COMPOSITION* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DIRECTOR SKILLS, EXPERTISE AND COMPOSITION* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DIRECTOR SKILLS, EXPERTISE AND COMPOSITION* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPC Board Tenure (years) | MPC Board Tenure (years) | 6 | 3 | 5 | 12 | 8 | 5 | 6 | 12 | 5 | — | 5.5 Years Average Tenure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MPC Board Tenure (years) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MPC Board Tenure (years) | 7 | 4 | 3 | 13 | 9 | 0 | 6 | 0 | 7 | 13 | 6 | 5.9 Years Average Tenure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Director Independence | Director Independence | ü | ü | ü | ü | ü | ü | ü | 92% Independent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Key Skills and Expertise | Key Skills and Expertise | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Leadership | Senior Leadership | ü | ü | ü | ü | 12/12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Leadership | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Leadership | ü | ü | ü | ü | ü | ü | 13/13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Public Company CEO | Public Company CEO | ü | ü | ü | ü | ü | 7/13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Risk Management | Risk Management | ü | ü | ü | 12/12 | Risk Management | ü | ü | ü | ü | ü | ü | 13/13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate Governance | Corporate Governance | ü | ü | ü | 12/12 | Corporate Governance | ü | ü | ü | ü | ü | ü | 13/13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Finance & Accounting | Finance & Accounting | ü | ü | ü | ü | ü | 11/12 | Finance & Accounting | ü | ü | ü | ü | ü | ü | ü | 12/13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Energy Industry | Energy Industry | ü | ü | ü | 9/12 | Energy Industry | ü | ü | ü | ü | ü | ü | 9/13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| International Business | International Business | ü | ü | ü | ü | ü | ü | 9/13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sustainability | Sustainability | ü | ü | ü | ü | ü | 12/12 | Sustainability | ü | ü | ü | ü | ü | ü | 13/13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environment | Environment | ü | ü | ü | ü | 5/13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Government, Legal & Regulatory | Government, Legal & Regulatory | ü | ü | ü | ü | ü | 7/12 | Government, Legal & Regulatory | ü | ü | ü | ü | ü | ü | 6/13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Age (at April 26, 2023) | 69 | 52 | 63 | 71 | 67 | 73 | 72 | 56 | 64 | 68 | 70 | 59 | 65.9 Years Average Age | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Technology & Cybersecurity | Technology & Cybersecurity | ü | ü | ü | ü | 5/13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Age (at April 24, 2024) | Age (at April 24, 2024) | 70 | 53 | 64 | 72 | 68 | 74 | 54 | 73 | 57 | 58 | 65 | 69 | 71 | 65.2 Years Average Age | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gender | Gender | Male | ¡ | ¡ | ¡ | 75% | Gender | Male | ¡ | ¡ | ¡ | ¡ | ¡ | ¡ | ¡ | 69% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Female | ¡ | ¡ | 25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Female | Female | ¡ | ¡ | ¡ | ¡ | 31% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Race, Ethnicity and Native American Tribal Membership | Race, Ethnicity and Native American Tribal Membership | ¡ | ¡ | ¡ | ¡ | 33% | Race, Ethnicity and Native American Tribal Membership | ¡ | ¡ | ¡ | ¡ | 31% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Diversity | Total Diversity | ¡ | ¡ | ¡ | ¡ | 42% | Total Diversity | ¡ | ¡ | ¡ | ¡ | ¡ | ¡ | 46% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CLASS I | CLASS II | CLASS III | * Reflects expected composition of the Board following the Annual Meeting, assuming all Class III director nominees are elected. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CLASS I | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * Reflects expected composition of the Board following the Annual Meeting, assuming all Class I director nominees are elected. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * Reflects expected composition of the Board following the Annual Meeting, assuming all Class I director nominees are elected. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * Reflects expected composition of the Board following the Annual Meeting, assuming all Class I director nominees are elected. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 8 | Marathon Petroleum Corporation | |||||||
| PROPOSAL 1. ELECTION OF DIRECTORS | ||
| CLASS | |||||||||||||||||||||||||||||
| Term expires | |||||||||||||||||||||||||||||
  | Key Skills and Expertise | ||||||||||||||||||||||||||||
| ü | Senior leadership | ü | Finance | ü | Sustainability | ||||||||||||||||||||||||
| ü | Risk management | ü | Energy industry | ||||||||||||||||||||||||||
| ü | Corporate governance | ü | International business | ||||||||||||||||||||||||||
| Career Highlights: | |||||||||||||||||||||||||||||
| v | Senior Vice President of Industrial Relations (2007-2014), Senior Vice President of Refining, Marketing and International (2001-2007), Senior Vice President, International Operations (2000-2001) of Saudi Arabian Oil Company (Saudi Aramco) | ||||||||||||||||||||||||||||
Independent Director Age: 70 Director since: 2016 MPC Board Committees: Audit Compensation and Organization Development Sustainability and Public Policy, Vice Chair | |||||||||||||||||||||||||||||
| v | Thirty-three year career at Saudi Aramco, beginning in various field positions and progressing through management roles of increasing responsibility | ||||||||||||||||||||||||||||
Other Public Company Directorships (current): Halliburton Company (since 2014); National Gas & Industrialization Company (since 2019) | |||||||||||||||||||||||||||||
Other Public Company Directorships (within past five years): None | |||||||||||||||||||||||||||||
Education: B.S., Mechanical Engineering, University of California, Irvine; M.B.A., University of California, Irvine; Advanced Management Program, University of Pennsylvania | |||||||||||||||||||||||||||||
Other Professional Experience and Community Involvement: | |||||||||||||||||||||||||||||
| Director, Saudi Electricity Company (2018-2020) | |||||||||||||||||||||||||||||
| Member, Board of Directors for the International Youth Foundation | |||||||||||||||||||||||||||||
| Jonathan Z. Cohen | CLASS I DIRECTOR NOMINEE | ||||||||||||||||||||||
| Founder, CEO and President, Hepco Capital Management, LLC | Term expires 2024 | ||||||||||||||||||||||
 | Key Skills and Expertise | ||||||||||||||||||||||
| ü | Senior leadership | ü | Corporate governance | ü | Sustainability | ||||||||||||||||||
| ü | Public company CEO | ü | Finance & accounting | ü | Government, legal & regulatory | ||||||||||||||||||
| ü | Risk management | ü | Energy industry | ü | Technology & cybersecurity | ||||||||||||||||||
| Career Highlights: | |||||||||||||||||||||||
| v | |||||||||||||||||||||||
Independent Director Age: 53 Director since: 2019 MPC Board Committees: Audit, Vice Chair Corporate Governance and Nominating | v | Co-Chairman (2019-2021) and CEO | |||||||||||||||||||||
| v | Chairman of the | ||||||||||||||||||||||
| v | President and CEO (2004-2016), Resource America, Inc., an asset management company | ||||||||||||||||||||||
| v | Co-founder and various executive roles at Atlas Pipeline Partners, LP and Atlas Energy, Inc. | ||||||||||||||||||||||
Other Public Company Directorships (current): None | |||||||||||||||||||||||
Other Public Company Directorships (within past five years): Atlas Energy Group, LLC (2012-2019); Energen Corporation (2018-2019); Falcon Minerals Corporation (2017-2020); Osprey Technology Acquisition Corp. (2019-2021); Titan Energy, LLC (2016-2019) | |||||||||||||||||||||||
Education: B.A., University of | |||||||||||||||||||||||
Other Professional Experience and Community Involvement: | |||||||||||||||||||||||
| Co-founder, Castine Capital Management, LLC (2003-2020) | |||||||||||||||||||||||
| Vice Chairman, Lincoln Center Theater; Trustee, East Harlem School; Trustee, Arete Foundation; Trustee, American School of Classical Studies in Athens, Greece | |||||||||||||||||||||||
| Member, Board of Overseers, College of Arts and Sciences, University of Pennsylvania | |||||||||||||||||||||||
| 2024 Proxy Statement | 9 | |||||||
| PROPOSAL 1. ELECTION OF DIRECTORS | ||
| Michael J. Hennigan | CLASS I DIRECTOR NOMINEE | ||||||||||||||||||||||
| CEO, Marathon Petroleum Corporation | Term expires 2024 | ||||||||||||||||||||||
 | Key Skills and Expertise | ||||||||||||||||||||||
| ü | Senior leadership | ü | Finance & accounting | ü | Sustainability | ||||||||||||||||||
| ü | Public company CEO | ü | Energy industry | ü | Environment | ||||||||||||||||||
| ü | Risk management | ü | International business | ü | Technology & cybersecurity | ||||||||||||||||||
| ü | Corporate governance | ||||||||||||||||||||||
| Career Highlights: | |||||||||||||||||||||||
| v | CEO (since January 2024), President and CEO (2020-2023) and director (since 2020) of MPC; Chairman (since 2020), CEO (since 2019) and President and director (since 2017) of MPLX | ||||||||||||||||||||||
Management Director Age: 64 Director since: 2020 MPC Board Committees: Sustainability and Public Policy | |||||||||||||||||||||||
| v | President, Crude, NGL and Refined Products (2017), of the general partner of Energy Transfer Partners L.P., a | ||||||||||||||||||||||
| v | President and CEO (2012-2017), President and Chief Operating Officer (2010-2012) and Vice President, Business Development (2009-2010), of Sunoco Logistics Partners L.P., an energy service provider | ||||||||||||||||||||||
Other Public Company Directorships (current): MPLX GP LLC* (since 2017); Nutrien Ltd. (since 2022) | |||||||||||||||||||||||
Other Public Company Directorships (within past five years):Tesoro Logistics GP, LLC (2018-2019) | |||||||||||||||||||||||
Education: B.S., Chemical Engineering, Drexel University | |||||||||||||||||||||||
| Frank M. Semple | CLASS I DIRECTOR NOMINEE | ||||||||||||||||||||||
| Retired Chairman, President and CEO, MarkWest Energy Partners, L.P. | Term expires 2024 | ||||||||||||||||||||||
 | Key Skills and Expertise | ||||||||||||||||||||||
| ü | Senior leadership | ü | Corporate governance | ü | Sustainability | ||||||||||||||||||
| ü | Public company CEO | ü | Finance & accounting | ||||||||||||||||||||
| ü | Risk management | ü | Energy industry | ||||||||||||||||||||
| Career Highlights: | |||||||||||||||||||||||
| v | Vice Chairman (2015-2016) and director (since 2015) of MPLX following MPLX’s acquisition of MarkWest Energy Partners, L.P. | ||||||||||||||||||||||
Independent Director Age: Director since: (previous MPC Board member 2015-2018) MPC Board Committees: Audit | |||||||||||||||||||||||
| v | |||||||||||||||||||||||
| v | Twenty-two years of service | ||||||||||||||||||||||
Other Public Company Directorships (current): MPLX GP LLC* (since | |||||||||||||||||||||||
Other Public Company Directorships (within past five years): | |||||||||||||||||||||||
Education: B.S., | |||||||||||||||||||||||
Other Professional Experience and Community Involvement: | |||||||||||||||||||||||
| Service in the United States Navy | |||||||||||||||||||||||
| Member, Board of | |||||||||||||||||||||||
 | |||||||||||||||||
| * | Under our Corporate Governance Principles, due to their affiliate nature, concurrent service on the boards of MPC and MPLX GP LLC is counted as one public company board for purposes of assessing the level of public company board commitments. | ||||
| PROPOSAL 1. ELECTION OF DIRECTORS | ||
| CLASS | |||||||||||||||||||||||
| Term expires | |||||||||||||||||||||||
  | Key Skills and Expertise | ||||||||||||||||||||||
 | ||||||||||||||||||||
| ü | Senior leadership | ü | Finance | ü | Government, legal & regulatory | |||||||||||||||
| ü | Risk management | ü | ||||||||||||||||||
| ü | ||||||||||||||||||||
 | ||||||||||||||||||||
| ü | Corporate governance | ü | Sustainability | |||||||||||||||||
| Career Highlights: | ||||||||||||||||||||
| v | Senior | |||||||||||||||||||
| v | U.S. Senator (1999-2011); served on Senate committees including Banking, Housing and Urban Affairs; Armed Services; Energy and Natural Resources; Select Committee on Intelligence; Small Business and Entrepreneurship; Special Committee on Aging; chaired the International Trade and Finance Subcommittee | |||||||||||||||||||
Independent Director Age: Director since: MPC Board Committees: Sustainability and Public Policy, | ||||||||||||||||||||
| v | ||||||||||||||||||||
| v | Senior Advisor and Of Counsel, Cozen O’Connor Public Strategies, a law firm (2018-2019) | |||||||||||||||||||
| v | Partner, McGuireWoods LLP, a global diversified law firm (2011-2018) | |||||||||||||||||||
Other Public Company Directorships (current): | ||||||||||||||||||||
Other Public Company Directorships (within past five years): None | ||||||||||||||||||||
Education: B.S., | ||||||||||||||||||||
Other Professional Experience and Community Involvement: | ||||||||||||||||||||
| CLASS | |||||||||||||||||||||||
| Term expires | |||||||||||||||||||||||
  | Key Skills and Expertise | ||||||||||||||||||||||
| ü | Senior leadership | ||||||||||||||||||||||
 | |||||||||||||||||||||||
| ü | Corporate governance | ü | Sustainability | ||||||||||||||||||||
| ü | Public company CEO | ü | Finance & accounting | ||||||||||||||||||||
| ü | Risk management | ü | International business | ||||||||||||||||||||
| Career Highlights: | |||||||||||||||||||||||
| v | Chairman and CEO (2005-2015) and Executive Chairman (2015-2016) of PPG Industries, Inc. a global supplier of paints and coatings | ||||||||||||||||||||||
Independent Director Age: 74 Director since: 2015 MPC Board Committees: Compensation and Organization Development Corporate Governance and Nominating, Chair | v | President, Chief Operating Officer and | |||||||||||||||||||||
| v | Thirty-six year career at PPG Industries, serving in various roles in finance and planning, marketing and general management in the United States and Europe, including as Senior Vice President | ||||||||||||||||||||||
Other Public Company Directorships (current): | |||||||||||||||||||||||
Other Public Company Directorships (within past five years):ConocoPhillips (2014-2022); The PNC Financial Services Group, Inc. (2007-2022) | |||||||||||||||||||||||
Education: B.S., | |||||||||||||||||||||||
| Other Professional Experience and Community Involvement: | |||||||||||||||||||||||
| Former Chairman, National Association of Manufacturers | |||||||||||||||||||||||
| Former Chairman, board of the Federal Reserve Bank of Cleveland | |||||||||||||||||||||||
| 2024 Proxy Statement | 11 | |||||||
| PROPOSAL 1. ELECTION OF DIRECTORS | ||
| CLASS | |||||||||||||||||||||||
| Term expires | |||||||||||||||||||||||
  | Key Skills and Expertise | ||||||||||||||||||||||
| ü | Senior leadership | ü | Finance | ü | Technology & cybersecurity | ||||||||||||||||||
| ü | Risk management | ü | International business | ||||||||||||||||||||
| ü | Corporate governance | ü | Sustainability | ||||||||||||||||||||
| Career Highlights: | |||||||||||||||||||||||
| v | Founder and CEO of KET Solutions, LLC, a consulting firm (since 2021) | ||||||||||||||||||||||
| v | Executive Director, Finance Thought Leadership (2019), Global Strategy Leader, Cloud Business Group (2018-2019), Global Strategy Director, Financial Services Industry Group (2015-2018), and Executive Director and Global Leader for Health, Human Services and Labor Solutions Group (2004-2015) of Oracle Corporation | ||||||||||||||||||||||
Independent Director Age: 54 Director since: 2024 MPC Board Committees: Audit Corporate Governance and Nominating | |||||||||||||||||||||||
| v | Chief Information & Technology Officer, Prince George’s County, Maryland (2001-2004) | ||||||||||||||||||||||
Other Public Company Directorships (current): EverCommerce Inc. (since 2021); U.S. Bancorp (since 2021) | |||||||||||||||||||||||
Other Public Company Directorships (within past five years): None | |||||||||||||||||||||||
Education: B.A., Information Systems Management, University of Maryland; M.B.A., Business Administration and Decision Science, Loyola University Maryland; M.S., Information Technology Management, Carnegie Mellon University | |||||||||||||||||||||||
Other Professional Experience and Community Involvement: | |||||||||||||||||||||||
| Member, Board of Directors, Mutual of Omaha Insurance Corporation (since 2020) | |||||||||||||||||||||||
| Adjunct Professor, Heinz College of Information Systems and Public Policy, Carnegie Mellon University | |||||||||||||||||||||||
| Former Chairman, American Institute of CPAs; Former Chairman, Association of International Certified Professional Accountants | |||||||||||||||||||||||
| Certified public accountant; certified internal auditor; certified information systems auditor | |||||||||||||||||||||||
| Edward G. Galante | CLASS II DIRECTOR | |||||||||||||||||||||||||
| Retired Senior Vice President and Management Committee Member, ExxonMobil Corporation | Term expires 2025 | |||||||||||||||||||||||||
 | Key Skills and Expertise | |||||||||||||||||||||||||
| ü | Senior leadership | ü | Energy industry | ü | Environment | |||||||||||||||||||||
| ü | Risk management | ü | International business | |||||||||||||||||||||||
| ü | Corporate governance | ü | Sustainability | |||||||||||||||||||||||
| Career Highlights: | ||||||||||||||||||||||||||
| v | Senior Vice President and Management Committee member of ExxonMobil Corporation (2001-2006) | |||||||||||||||||||||||||
Independent Director Age: 73 Director since: 2018 MPC Board Committees: Compensation and Organization Development, Chair Sustainability and Public Policy | v | More than 30 years of service at ExxonMobil Corporation in roles of increasing responsibility, including Executive Vice President of ExxonMobil Chemical Company (1999-2001) | ||||||||||||||||||||||||
Other Public Company Directorships (current): Celanese Corporation (since 2013), Lead Director (2016-2021); Clean Harbors, Inc. (since 2010), Lead Director (since 2023) | ||||||||||||||||||||||||||
Other Public Company Directorships (within past five years): Andeavor (2016-2018); Linde PLC (2018-2023); Praxair, Inc. (2007-2018) | ||||||||||||||||||||||||||
Education: B.S., Civil Engineering, Northeastern University; Advanced Executive Program, Northwestern University | ||||||||||||||||||||||||||
Other Professional Experience and Community Involvement: | ||||||||||||||||||||||||||
| Member, Board of Directors, United Way Foundation of Metropolitan Dallas | ||||||||||||||||||||||||||
| Vice Chairman, Board of Trustees, Northeastern University | ||||||||||||||||||||||||||
| Member, Board of Directors, Artis-Naples | ||||||||||||||||||||||||||
| 12 | Marathon Petroleum Corporation | |||||||
| PROPOSAL 1. ELECTION OF DIRECTORS | ||
| Kim K.W. Rucker | CLASS II DIRECTOR | ||||||||||||||||||||||
| Former Executive Vice President, General Counsel and Secretary, Andeavor | Term expires 2025 | ||||||||||||||||||||||
 | Key Skills and Expertise | ||||||||||||||||||||||
| ü | Senior leadership | ü | Finance & accounting | ü | Sustainability | ||||||||||||||||||
| ü | Risk management | ü | Energy industry | ü | Government, legal & regulatory | ||||||||||||||||||
| ü | Corporate governance | ü | International business | ü | Technology & cybersecurity | ||||||||||||||||||
| Career Highlights: | |||||||||||||||||||||||
| v | Executive Vice President, General Counsel and Secretary of Andeavor (2016-2018); Executive Vice President and General Counsel of Tesoro Logistics GP, LLC (2016-2018) | ||||||||||||||||||||||
Independent Director Age: 57 Director since: 2018 MPC Board Committees: Audit Compensation and Organization Development, Vice Chair Sustainability and Public Policy | v | Executive Vice President, Corporate & Legal Affairs, General Counsel and Corporate Secretary of Kraft Foods Group, Inc., a grocery manufacturing and processing company (2012-2015) | |||||||||||||||||||||
| v | Senior Vice President, General Counsel and Chief Compliance Officer (2008-2012) and Corporate Secretary (2009-2012) of Avon Products, Inc. | ||||||||||||||||||||||
| v | Senior Vice President, Corporate Secretary and Chief Governance Officer of Energy Future Holdings Corp. (formerly TXU Corp.) (2004-2008) | ||||||||||||||||||||||
| v | Former Partner in the Corporate & Securities group at Sidley Austin LLP, a law firm | ||||||||||||||||||||||
Other Public Company Directorships (current): Celanese Corporation (since 2018); HP Inc. (since 2021); GE Vernova* (since 2024) | |||||||||||||||||||||||
Other Public Company Directorships (within past five years): Lennox International Inc. (2015-2024) | |||||||||||||||||||||||
Education: B.B.A., Economics, University of Iowa; J.D., Harvard Law School; M.P.P., John F. Kennedy School of Government at Harvard University | |||||||||||||||||||||||
Other Professional Experience and Community Involvement: | |||||||||||||||||||||||
| * Spinoff as public company planned for second quarter 2024 | Member, Board of Trustees, Johns Hopkins Medicine | ||||||||||||||||||||||
| Member, Board of Directors, Haven for Hope | |||||||||||||||||||||||
| 2024 Proxy Statement | 13 | |||||||
| PROPOSAL 1. ELECTION OF DIRECTORS | ||
| Eileen P. Drake | CLASS III DIRECTOR | ||||||||||||||||||||||||||||
| Former CEO and President, Aerojet Rocketdyne Holdings, Inc. | Term expires 2026 | ||||||||||||||||||||||||||||
 | Key Skills and Expertise | ||||||||||||||||||||||||||||
| ü | Senior leadership | ü | Corporate governance | ü | Sustainability | ||||||||||||||||||||||||
| ü | Public company CEO | ü | Finance & accounting | ü | Government, legal & regulatory | ||||||||||||||||||||||||
| ü | Risk management | ü | International business | ||||||||||||||||||||||||||
| Career Highlights: | |||||||||||||||||||||||||||||
| v | CEO and President (2015-2023) and Chief Operating Officer (2015) of Aerojet Rocketdyne Holdings, Inc. | ||||||||||||||||||||||||||||
| v | Various roles in senior management at United Technologies Corporation (2003-2015), including as Division President, Pratt & Whitney AeroPower (2013-2015); Vice | ||||||||||||||||||||||||||||
Independent Director Age: Director since: MPC Board Committees: Compensation and Organization Development Sustainability and Public Policy | |||||||||||||||||||||||||||||
| v | |||||||||||||||||||||||||||||
Other Public Company Directorships (current): | |||||||||||||||||||||||||||||
Other Public Company Directorships (within past five years): | |||||||||||||||||||||||||||||
Education: | |||||||||||||||||||||||||||||
Other Professional Experience and Community Involvement: | |||||||||||||||||||||||||||||
| Former member, Board of Governors, Aerospace Industries Association | |||||||||||||||||||||||||||||
| Former member, National Space Council Users’ Advisory Group | |||||||||||||||||||||||||||||
| J. Michael Stice | CLASS III DIRECTOR | ||||||||||||||||||||||
| Professor, The University of Oklahoma | Term expires 2026 | ||||||||||||||||||||||
 | Key Skills and Expertise | ||||||||||||||||||||||
| ü | Senior leadership | ü | Corporate governance | ü | International business | ||||||||||||||||||
| ü | Public company CEO | ü | Finance & accounting | ü | Sustainability | ||||||||||||||||||
| ü | Risk management | ü | Energy industry | ü | Environment | ||||||||||||||||||
| Career Highlights: | |||||||||||||||||||||||
| v | Dean, Mewbourne College of Earth & Energy at The University of Oklahoma (2015-2022) | ||||||||||||||||||||||
| v | CEO (2009-2014) and member of the board of directors (2012-2015) of Access Midstream Partners L.P., a publicly traded gathering and processing master limited partnership | ||||||||||||||||||||||
Independent Director Age: 65 Director since: 2017 MPC Board Committees: Audit Corporate Governance and Nominating, Vice Chair Sustainability and Public Policy | |||||||||||||||||||||||
| v | Nearly 30 years of service in positions of increasing responsibility at ConocoPhillips and its predecessor companies, including as President of ConocoPhillips Qatar (2003-2008) | ||||||||||||||||||||||
Other Public Company Directorships (current): Kosmos Energy Ltd. (since 2023); MPLX GP LLC* (since 2018) | |||||||||||||||||||||||
Other Public Company Directorships (within past five years): Spartan Acquisition Corp. II (2020-2021); Spartan Acquisition Corp. III (2021-2022); Spartan Energy Acquisition Corp. (2018-2020); U.S. Silica Holdings, Inc. (2013-2021) | |||||||||||||||||||||||
Education: B.S., Chemical Engineering, The University of Oklahoma; M.S., Business, Stanford University; Ed.D, Organizational Leadership, The George Washington University | |||||||||||||||||||||||
Other Professional Experience and Community Involvement: | |||||||||||||||||||||||
| Member, Board of Advisors, Energy Institute, The University of Oklahoma | |||||||||||||||||||||||
| Co-leader, Oklahoma Solve Climate by 2030, Center for Environmental Policy at Bard College | |||||||||||||||||||||||
| * | Under our Corporate Governance Principles, due to their affiliate nature, concurrent service on the boards of MPC and MPLX GP LLC is counted as one public company board for purposes of assessing the level of public company board commitments. | ||||
| Marathon Petroleum Corporation | ||||||||
| PROPOSAL 1. ELECTION OF DIRECTORS | ||
| CLASS | |||||||||||||||||||||||
| Term expires | |||||||||||||||||||||||
  | Key Skills and Expertise | ||||||||||||||||||||||
| ü | Senior leadership | ||||||||||||||||||||||
| ü | Corporate governance | ü | |||||||||||||||||||||
| ü | Public company CEO | ü | Finance & accounting | ü | Environment | ||||||||||||||||||
| ü | Risk management | ü | Energy industry | ü | Government, legal & regulatory | ||||||||||||||||||
| Career Highlights: | |||||||||||||||||||||||
| v | |||||||||||||||||||||||
Independent Age: Director since: 2011 | |||||||||||||||||||||||
| v | |||||||||||||||||||||||
| v | |||||||||||||||||||||||
Other Public Company Directorships (current): | |||||||||||||||||||||||
Other Public Company Directorships (within past five years): | |||||||||||||||||||||||
Education: B.S., | |||||||||||||||||||||||
Other Professional Experience and Community Involvement: | |||||||||||||||||||||||
| Chairman, board of the University of Pittsburgh Medical Center | |||||||||||||||||||||||
| Former Chair, board of the Federal Reserve Bank of Cleveland | |||||||||||||||||||||||
| Former Vice Chairman, President’s Advisory Committee for Trade Policy and | |||||||||||||||||||||||
| Former Chairman, board of the National Safety Council | |||||||||||||||||||||||
| CLASS | |||||||||||||||||||||||||||||
| Retired | Term expires | ||||||||||||||||||||||||||||
  | Key Skills and Expertise | ||||||||||||||||||||||||||||
| ü | Senior leadership | ü | Finance | ü | Environment | ||||||||||||||||||||||||
| ü | Risk management | ü | |||||||||||||||||||||||||||
 | ||||||||||||||||||||||||||
| ü | ||||||||||||||||||||||||||
| ü | Corporate governance | ü | ||||||||||||||||||||||||
| Career Highlights: | ||||||||||||||||||||||||||
| v | ||||||||||||||||||||||||||
| v | Various executive officer positions at American Electric Power Co., including Executive Vice President and | |||||||||||||||||||||||||
Independent Director Age: Director since: 2018 MPC Board Committees: Sustainability and Public Policy | ||||||||||||||||||||||||||
| v | ||||||||||||||||||||||||||
| v | General Counsel, Federal Energy Regulatory Commission (1993-1997) | |||||||||||||||||||||||||
Other Public Company Directorships (current): | ||||||||||||||||||||||||||
Other Public Company Directorships (within past five years): Andeavor | ||||||||||||||||||||||||||
Education: | ||||||||||||||||||||||||||
Other Professional Experience and Community Involvement: | ||||||||||||||||||||||||||
| Former Director, board of | ||||||||||||||||||||||||||
 | ||||||||||||||||||||||||||
| Member, Board of Trustees, | ||||||||||||||||||||||||||
| * | Under our Corporate Governance Principles, due to their affiliate nature, concurrent service on the boards of MPC and MPLX GP LLC is counted as one public company board for purposes of assessing the level of public company board commitments. | ||||
| CORPORATE GOVERNANCE | ||
| Our Corporate Governance Framework | ||
| Core Governance Documents | ||
| Our Bylaws, Corporate Governance Principles | ||
| Codes of Business Conduct and Ethics | ||
| Our Code of Business Conduct, which applies to all of our directors, officers and employees, defines our expectations for ethical decision-making, accountability and responsibility. Our Code of Ethics for Senior Financial Officers, which is specifically applicable to our | ||
| Additional Governance Documents | ||
| Our Whistleblowing as to Accounting Matters Policy establishes procedures for the receipt, retention and treatment of any complaints we receive regarding accounting, internal accounting controls or auditing matters, and provides for the confidential, anonymous submission of concerns by our employees or others regarding questionable accounting or auditing matters. | ||
| Our Conflicts of Interest Policy provides guidance on recognizing and resolving real or apparent conflicts of interest. This policy acknowledges that business decisions on behalf of the Company must be made through the exercise of independent judgment in the Company’s best interests and not influenced by personal interests. | ||
| 8 | ||||||||||||||||||||
| FIND MORE AT WWW.MARATHONPETROLEUM.COM | ||||||||||||||||||||
| The following are available under the “Investors” tab of our website, by selecting “Corporate Governance”: | ||||||||||||||||||||
| Ø | Bylaws | Ø | Code of Ethics for Senior Financial Officers | |||||||||||||||||
| Ø | Corporate Governance Principles | Ø | Whistleblowing as to Accounting Matters Policy | |||||||||||||||||
| Ø | Code of Business Conduct | Ø | Conflicts of Interest Policy | |||||||||||||||||
| Our Board committee charters, and other information about our Board, are available under the “About” tab of our website, by selecting “Board of Directors.” | ||||||||||||||||||||
| Board Composition and Director Selection | ||
| Our Corporate Governance Principles set forth the processes for director selection and the establishment of director qualifications. The Board has delegated the director recruitment process to the Corporate Governance and Nominating Committee with input from our Chairman. | ||
| The Board believes that it, as a whole, should possess the combination of skills, professional experience, and diversity of backgrounds and viewpoints necessary to oversee our business and ensure an effective mix of perspectives. Accordingly, the Board and the Corporate Governance and Nominating Committee consider the qualifications of directors and director candidates individually and in the broader context of the Board’s overall composition and our current and future needs. In developing long-term plans for Board composition, the Corporate Governance and Nominating Committee takes into consideration the current strengths, skills and experience of members of the Board, their outside commitments, our director retirement policy and our strategic direction. | ||
| CORPORATE GOVERNANCE | ||
| |||||||||||||||||||||||||||||||||||
| Director Candidates | ||
| The Corporate Governance and Nominating Committee assesses candidates for membership on the Board. The Committee may work with a third-party professional search firm to assist with identifying and evaluating director candidates and their credentials. The Committee has the authority to retain and terminate any such firm, including the authority to approve the firm’s fees and other retention terms. The Committee retained | ||
The Corporate Governance and Nominating Committee may also consider candidates recommended by shareholders. Shareholder candidates will be evaluated using the same criteria for director selection described | ||
| Board Refreshment | ||
The Board is committed to striking a balance between retaining directors with deep knowledge of the Company and seeking fresh perspectives in its recruiting efforts. Our robust Board and individual director evaluation process, discussed on page 23, supports this objective. Further, our Corporate Governance Principles provide that directors may not stand for reelection once they reach age 73. The average tenure of our directors is 5.9 years. | ||
Commitment to Board Diversity | ||||||||
  | ||||||||
| The Board | ||||||||
| Our Corporate Governance Principles emphasize the importance of diversity of director backgrounds and experiences and expressly affirm the Board’s commitment to actively seek women candidates and candidates of diverse ethnic and racial backgrounds as it recruits the most qualified directors with the requisite experience and skills. | ||||||||
| Since 2018, the Board has appointed | ||||||||
| CURRENT BOARD COMPOSITION | ||||||||
| Director Independence | ||
| A director is considered independent if the Board affirmatively determines that he or she meets the independence standards in our Corporate Governance Principles, has no material relationship with us other than as a director and satisfies the independence requirements of the NYSE and applicable SEC rules. The Board determines director independence at least annually, considering all relevant facts and circumstances including, without limitation: | ||
•Transactions between MPC and the director, immediate family members of the director or organizations with which the director is affiliated; | ||
•Any service by the director on the board of a company with which we conduct business; | ||
•The frequency and dollar amounts associated with any such transactions; and | ||
•Whether any such transactions are at arm’s length in the ordinary course of business and on terms and conditions similar to those with unrelated parties. | ||
| Based on these criteria, the Board has determined that each of the following directors is independent: | ||
| Abdulaziz F. Alkhayyal | Jonathan Z. Cohen | Edward G. Galante | J. Michael Stice | Toni Townes-Whitley (concluded Board service June 30, 2023) | ||||||||||
| Evan Bayh | Eileen P. Drake | Kim K.W. Rucker | John P. Surma | |||||||||||
| Charles E. Bunch | Kimberly Ellison-Taylor | Frank M. Semple | Susan Tomasky | |||||||||||
| CORPORATE GOVERNANCE | ||
| Director Skills and Expertise | ||
| In evaluating director candidates and recommending incumbent directors for renomination, the Corporate Governance and Nominating Committee considers a wide range of backgrounds, critical skills, perspectives and expertise that it believes contribute to sound governance and effective oversight of our operations, risks and long-term strategy. All directors must possess integrity, good judgment, a strong work ethic, a collaborative approach to engagement, a record of public service and the ability to devote sufficient time to our affairs. In addition, the Committee has identified the following key skills and areas of expertise that should be represented on the Board*: | ||
 | |||||||||||||||||||||||||||||
| Senior Leadership | Experience in significant leadership positions provides the necessary skills to develop and oversee our strategy, drive long-term value, and motivate and retain individual leaders. | 13 |  | ||||||||||||||||||||||||||
| Directors | |||||||||||||||||||||||||||||
 | Public Company CEO | Leadership experience as a chief executive officer of a large, public company provides unique perspective and ability to effectively advise and oversee the performance of our CEO. | 7 |  | |||||||||||||||||||||||||
| Directors | |||||||||||||||||||||||||||||
 | Risk Management | Experience in identifying, prioritizing and managing a broad spectrum of risks provides skills critical to the Board’s oversight of our risk assessment and risk management programs. | 13 | | |||||||||||||||||||||||||
| Directors | |||||||||||||||||||||||||||||
 | Corporate Governance | Service on other public company boards and committees provides knowledge critical to the governance of our organization and insight into board management and oversight functions. | | ||||||||||||||||||||||||||
| Directors | |||||||||||||||||||||||||||||
 | Finance | An understanding of finance, accounting and financial reporting processes provides the financial acumen necessary to | 12 |  | |||||||||||||||||||||||||
| Directors | |||||||||||||||||||||||||||||
 | Energy Industry | Leadership experience in the energy industry, particularly in refining and logistics operations, provides practical understanding of our business and effective oversight in implementing our strategy. | 9 |  | |||||||||||||||||||||||||
| Directors | |||||||||||||||||||||||||||||
 | International Business | Experience working outside the U.S. or leading a global business provides valuable business knowledge and perspective on our international operations and global commodity trade. | 9 | | |||||||||||||||||||||||||
| Directors | |||||||||||||||||||||||||||||
 | Sustainability | Experience overseeing, operating or advising on matters of sustainable energy, corporate social responsibility or human capital management supports effective oversight over these matters and reinforces our commitment to creating shared value with our stakeholders. | 13 | | |||||||||||||||||||||||||
| Directors | |||||||||||||||||||||||||||||
 | Environment | Expertise in environmental policy and emerging technologies strengthens oversight and helps ensure that our business strategies are aligned with the evolving energy landscape as we strive to meet the energy needs of today while investing in an energy-diverse future. | 5 |  | |||||||||||||||||||||||||
| Directors | |||||||||||||||||||||||||||||
 | Government, Legal & Regulatory | As we operate in a heavily regulated industry, expertise in government, legal or regulatory functions provides insight and perspective helpful to navigating these complex issues. | 6 |  | |||||||||||||||||||||||||
| Directors | |||||||||||||||||||||||||||||
 | Technology & Cybersecurity | Experience in leading innovative technological strategies and/or cybersecurity oversight provides knowledge critical to support digital transformation and management of cyber risks. | 5 | | |||||||||||||||||||||||||
| Directors | |||||||||||||||||||||||||||||
| * | |||||||||||||||||||||||
Specific information about the key qualifications and experience of each director and director nominee can be found beginning on page 8 under “Proposal 1. Election of Directors.” | ||
| Majority Voting for Directors | ||
| Our Bylaws include a majority vote standard for uncontested director elections, which requires that a nominee for director in an uncontested election receive a majority of votes cast at a shareholder meeting in order to be elected to the Board. Any director nominee who does not receive a majority of the votes cast is required to submit an irrevocable resignation to the Corporate Governance and Nominating Committee, which will make a recommendation to the Board as to whether to accept or reject the resignation or take other action. The Board will, within 90 days following certification of the election results, publicly disclose its decision regarding the resignation and, if such resignation is rejected, the rationale behind the decision. | ||
| 18 | Marathon Petroleum Corporation | |||||||
| CORPORATE GOVERNANCE | ||
| Proxy Access | ||
| Proxy access refers to the right of shareholders meeting certain ownership criteria to nominate director candidates for inclusion in | ||
| of our outstanding common stock | for at least three years may nominate directors to our Board and include the nominees in our proxy materials to be voted on at our annual meeting. The maximum number of shareholder nominees that will be included in our proxy materials with respect to an annual meeting is the greater of two nominees or 20% | |||||||||||||
| directors then serving on the Board. A shareholder who seeks to nominate a director or directors to our Board | ||||||||||||||
| must provide proper notice to our Corporate Secretary and satisfy the other requirements specified in our Bylaws. | ||||||||||||||
| Board Leadership and Function | ||
| Independent Chairman of the Board | ||
| Our Corporate Governance Principles provide the Board with the flexibility to exercise its business judgment on behalf of shareholders and choose the optimal leadership for the Board depending upon the Company’s particular needs and circumstances at a given time. The independent members of the Board elect the Chairman and, as part of this election, review whether to combine or separate the roles of Chairman and CEO. | ||
| Throughout our history as a public company, the Board has selected the leadership structure it determined was best for the Company at that time. The Board was led by an independent Chairman from 2011, when we became a public company, to 2016. The Board combined the Chairman and CEO roles from 2016 to 2020, and then determined to separate them again in 2020. In making each determination to separate or combine the Chairman and CEO roles, the Board took into consideration many factors, including the Board’s role in oversight, the skills, qualifications and experience of our then-serving directors, the evolving needs of our Company, how our leadership structure was functioning and the views of our shareholders. These adjustments to leadership structure over time demonstrate the Board’s thoughtful approach in evaluating and implementing the best leadership structure for the Board depending upon the Company’s circumstances at a given time. Changes in the Board’s leadership structure are reflected on our website shortly after becoming effective and disclosed in compliance with applicable regulatory requirements. | ||
| Mr. Surma has led the Board as its independent Chairman since 2020. The Board believes that this leadership structure, which separates the Chairman and CEO roles, is appropriate at this time in light of MPC’s business and operating environment. Mr. Surma, a long-standing member of the Board, has in-depth knowledge of the issues, challenges and opportunities facing MPC. As such, the Board believes that he is best positioned at this time to assure that the Board’s time and attention are focused on the most critical matters. His role ensures decisive independent leadership and clear accountability. | ||
| INDEPENDENT CHAIRMAN | |||||||||||||||||
| Key Responsibilities | ||||||||||||||||
Provides leadership to the Board and ensures the effective discharge of its duties through: ◦Approving Board meeting agendas and schedules ◦Presiding at Board meetings and executive sessions of non-management directors ◦Assisting the Corporate Governance Committee Chair with director recruitment, committee composition, committee chair selection and the Board’s self-evaluation process ◦Assisting with the evaluation of CEO performance Supports company management through: ◦Acting as an advisor to the CEO and other officers ◦Providing feedback to the CEO following executive sessions of non-management directors ◦Facilitating effective communications between the directors and management Promotes engagement with shareholders through: ◦Calling, and presiding as Chairman at, shareholder meetings ◦Directly communicating with our shareholders and stakeholders, as appropriate | |||||||||||||||||
| John P. Surma | |||||||||||||||||
Independent Chairman since 2020 Director since 2011 | |||||||||||||||||
| 2024 Proxy Statement | 19 | |||||||
| Board Committees | ||
| The Board has four standing committees, to which it has delegated certain functions and oversight | ||
| AUDIT COMMITTEE | |||||||||||||||||
| Key Responsibilities | ||||||||||||||||
| Appoints, compensates and oversees the performance of the independent auditor, including approval of all services to be performed by the auditor | |||||||||||||||||
| Reviews with management, the independent auditor and our internal auditors the integrity of our disclosure controls and procedures, annual and quarterly financial statements and internal controls over financial reporting | |||||||||||||||||
| Oversees the internal audit function, including its structure and budget, and the performance and compensation of the chief audit executive | |||||||||||||||||
| Reviews with management significant corporate risk exposures and risk mitigation efforts | |||||||||||||||||
| Reviews and assesses the effectiveness of our information technology controls relating to business continuity, data privacy and cybersecurity | |||||||||||||||||
| Monitors compliance with legal and regulatory requirements, our Codes of Business Conduct and Ethics for Senior Financial Officers and Whistleblowing as to Accounting Matters Policy | |||||||||||||||||
| Reviews legislative and regulatory issues affecting ESG and climate risk disclosures within the financial reporting framework and monitors developments in integrated reporting for alignment with financial reporting | |||||||||||||||||
| Has authority to investigate any matter brought to its attention with full access to all books, records, facilities and personnel of the Company, and to retain independent legal, accounting, or other advisors or consultants | |||||||||||||||||
Susan Tomasky, Chair(1) | |||||||||||||||||
Members: Jonathan Z. Cohen, Vice Chair(1) Abdulaziz F. Alkhayyal(1) Kimberly Ellison-Taylor(2) Kim K.W. Rucker(3) Frank M. Semple J. Michael Stice(1) Toni Townes-Whitley(4) | |||||||||||||||||
Meetings in 2023:5 | |||||||||||||||||
Independent Directors:100% | |||||||||||||||||
(1) Audit Committee financial expert (2) Effective March 1, 2024 (3) Effective October 1, 2023 (4) March 1, 2023 to June 30, 2023 | |||||||||||||||||
| COMPENSATION AND ORGANIZATION DEVELOPMENT COMMITTEE | ||||||||||||||||||||
| Key Responsibilities | |||||||||||||||||||
| Establishes our executive compensation guiding principles and determines our executive compensation policies and procedures consistent with such principles | ||||||||||||||||||||
| Sets compensation and approves benefit plans and perquisites for | ||||||||||||||||||||
| NEOs | Oversees our incentive compensation plans, sets metrics thereunder, | |||||||||||||||||||
| Oversees our human capital management strategies and policies | ||||||||||||||||||||
| Oversees our engagement with stakeholders on compensation and human capital management matters | ||||||||||||||||||||
| Edward G. Galante, Chair | ||||||||||||||||||||
Members: Abdulaziz F. Alkhayyal Charles E. Bunch Eileen P. Drake(2) Frank M. Semple Toni Townes-Whitley(3) | ||||||||||||||||||||
To the extent permitted by NYSE listing standards and applicable law, the Compensation and Organization Development Committee is authorized under its charter to delegate any of its responsibilities to a subcommittee comprised of one or more of its members, and certain of its responsibilities or to one or more officers of MPC. See “Executive Compensation” beginning on page | ||||||||||||||||||||
Meetings in 2023:6 | ||||||||||||||||||||
Independent Directors:100% | ||||||||||||||||||||
(1) Effective October 1, 2023 (2) Effective March 1, 2024 (3) March 1, 2023 to June 30, 2023 | ||||||||||||||||||||
| The Board has determined that each member of the Compensation and Organization Development Committee meets the applicable SEC and | ||
| 20 | Marathon Petroleum Corporation | |||||||
| CORPORATE GOVERNANCE | ||
| CORPORATE GOVERNANCE AND NOMINATING COMMITTEE | ||||||||||||||||||||
| Key Responsibilities | |||||||||||||||||||
| Evaluates and makes recommendations to the Board concerning the appropriate size and composition of the Board | ||||||||||||||||||||
| Reviews and makes recommendations regarding the Board’s leadership structure | ||||||||||||||||||||
| Selects and recommends director candidates to the Board to be submitted for election at annual meetings and to fill any vacancies on the Board | ||||||||||||||||||||
| Makes recommendations concerning the Board’s standing committees, including committee structure, leadership, membership and charters | ||||||||||||||||||||
| Monitors our corporate governance practices and recommends to the Board appropriate corporate governance policies and procedures | ||||||||||||||||||||
| Reviews and recommends to the Board compensation for our non-employee directors | ||||||||||||||||||||
| Reviews and makes recommendations with respect to director resignations tendered in accordance with the Corporate Governance Principles | ||||||||||||||||||||
| Oversees the evaluation of the Board, its committees and individual directors | ||||||||||||||||||||
| Reviews legislative and regulatory issues affecting corporate governance | ||||||||||||||||||||
| Oversees our engagement with stakeholders on corporate governance matters | ||||||||||||||||||||
| Charles E. Bunch, Chair | ||||||||||||||||||||
Members: J. Michael Stice, Vice Chair Evan Bayh Jonathan Z. Cohen Kimberly Ellison-Taylor(1) | ||||||||||||||||||||
Meetings in 2023:5 | ||||||||||||||||||||
Independent Directors:100% | ||||||||||||||||||||
(1) Effective March 1, 2024 | ||||||||||||||||||||
| The Board has determined that each member of the Corporate Governance and Nominating Committee meets the applicable SEC and NYSE independence requirements. | ||
| SUSTAINABILITY AND PUBLIC POLICY COMMITTEE | ||||||||||||||||||||
| Key Responsibilities | |||||||||||||||||||
| Oversees our sustainability, ESG, and health, environmental, safety and security policies and programs, and reviews our performance thereunder | ||||||||||||||||||||
| Reviews our annual Sustainability Report and Climate-Related Scenarios report, and other key sustainability disclosures, available at www.marathonpetroleum.com/Sustainability/ | ||||||||||||||||||||
| Oversees the establishment of our sustainability targets | ||||||||||||||||||||
| Oversees our governance framework and budgets for political contributions and lobbying expenditures, and reviews key disclosures regarding such contributions | ||||||||||||||||||||
| Oversees our framework for the development of our public policy positions | ||||||||||||||||||||
| Oversees our commitment to safety, including our safety culture, leadership of safety programs and general safety performance ◦Reviews legislative and regulatory developments affecting sustainability, ESG and public policy matters | ||||||||||||||||||||
| Oversees our engagement with stakeholders on sustainability, ESG and public policy matters | ||||||||||||||||||||
| Evan Bayh, Chair | ||||||||||||||||||||
Members: Abdulaziz F. Alkhayyal, Vice Chair Eileen P. Drake(1) Edward G. Galante Michael J. Hennigan Kim K.W. Rucker J. Michael Stice Susan Tomasky | ||||||||||||||||||||
Meetings in 2023:4 | ||||||||||||||||||||
Independent Directors:86% | ||||||||||||||||||||
(1) Effective March 1, 2024 | ||||||||||||||||||||
| In addition to the four standing committees, the Board maintains an Executive Committee, which meets as necessary to address matters that arise between Board meetings and may exercise the powers and authority of the Board subject to specific limitations consistent with our Bylaws and applicable law. The Executive Committee is composed of the independent Chairman, the CEO and the Chair of each of the Board’s four standing committees. | ||||||||
| 2024 Proxy Statement | 21 | |||||||
| CORPORATE GOVERNANCE | ||
| SUCCESSION COMMITTEE | ||||||||
| In 2023, the Board formed a special committee, composed of Messrs. Galante (chair), Cohen, Stice and Surma and Ms. Rucker, to focus on succession planning for the CEO role, including a review of succession candidates and consideration of any waiver or extension of our mandatory retirement policy. The Succession Committee met two times in 2023. | ||||||||
| Board Meetings and Attendance | ||||||||||||||
| The Board met nine times in 2023. Our Corporate Governance Principles set forth the expectation that directors will attend and actively participate in Board meetings. In 2023, each director attended at least 75% of the aggregate number of meetings of the Board and the committees on which he or she served, and our incumbent directors’ attendance at such meetings averaged 99%. As independent Chairman, Mr. Surma attends committee meetings but is not a member of any Board committee. |  | |||||||||||||
| 2023 Board/committee meeting attendance (avg.) | ||||||||||||||
| Our Corporate Governance Principles provide that the non-employee directors will hold regular executive sessions, presided over by the independent Chairman, without the CEO or management present. The non-employee directors held nine such executive sessions in 2023. |  | |||||||||||||
| 2023 annual meeting attendance | ||||||||||||||
| All directors are expected to attend our annual meeting. All members of the Board attended the virtual annual meeting of shareholders held on April 26, 2023. | ||||||||||||||
| Director Commitments | ||
| Director Category | Limit on Public Company Board Service, Including MPC* | |||||||||||||
| Non-employee director | ||||||||||||||
| Director serving as a non-executive board chair or lead independent director of a public company | 4 boards maximum | |||||||||||||
| Director serving as an executive officer of a public company | ||||||||||||||
| * | Messrs. Hennigan, Semple, Stice and | ||||
| The Corporate Governance and Nominating Committee conducts an annual review of director commitments, including consideration of directorships and any leadership positions held at other public and private companies and nonprofit entities, and has determined that all directors currently comply with these guidelines. | |||||||||||
| Director Orientation and Education | |||||
| To ensure directors maintain the necessary knowledge to perform their responsibilities and effectively oversee MPC, members of our Board are provided a variety of learning opportunities throughout the year. | |||||
| Orientation | Our orientation program for new directors includes meetings with and presentations by senior management. This offers a new director the opportunity to receive one-on-one time with management to discuss various aspects of our business. | ||||
External Programs | We encourage directors to attend, at our expense, director continuing education programs. In 2023, several of our directors attended programs specifically focused on board leadership and diversity, corporate governance developments, cybersecurity risk, climate risk strategy and disclosure, finance and internal audit, and human capital management. Several directors also attended symposiums sponsored by outside organizations that are designed as continuing director education on many topics relevant to public company board service. | ||||
| Educational Presentations on Relevant Topics | We also provide ongoing director education through presentations at Board and committee meetings, and regularly invite significant investors, subject matter experts and public sector representatives to speak to the Board. | ||||
| 22 | Marathon Petroleum Corporation | |||||||
| CORPORATE GOVERNANCE | ||
| Board Evaluations | ||
| Our Corporate Governance Principles provide for a robust annual Board, committee and individual director evaluation process, administered by the Corporate Governance and Nominating Committee. | ||
| Each director provides written responses to questions designed to enhance Board and committee effectiveness through the identification of actionable recommendations. The evaluation questions seek feedback on, among other things, Board and committee operation, composition and organization; Board dynamics; director skills; short- and long-term Board goals and objectives; committee effectiveness; and the performance of the Board and its committees in light of the responsibilities of each body as established in our governance documents. | |||||||||||||||||||||||||||||
| ü | Summary reports of director feedback are compiled and provided to all directors. | ||||||||||||||||||||||||||||
| ü | The Chairman leads a discussion of Board evaluation results with all of the directors as a group. | ||||||||||||||||||||||||||||
| ü | Each committee’s Chair leads a discussion of committee results at a committee meeting and reports out to the full Board. | ||||||||||||||||||||||||||||
| Individual Peer and Self- Evaluations | Our Corporate Governance Principles provide for an enhanced process to evaluate the individual performance of each director whose term expires at the next annual meeting and is eligible for reelection. This is typically accomplished by means of a written evaluation completed by each of the director’s peers. Each evaluated director also completes a written self-evaluation on his/her own performance. | ||||||||||||||||||||||||||||
| ü | The of the Corporate Governance and Nominating Committee jointly conduct discussions of individual evaluation results with each evaluated director. | ||||||||||||||||||||||||||||
| Each director reviews the Corporate Governance Principles and the charter of each committee on which he or she serves, and provides feedback and revision suggestions as deemed appropriate. | |||||||||||||||||||||||||||||
| Our Corporate Governance and Nominating Committee believes this process, which combines the opportunity for each director to individually reflect on Board and committee effectiveness with a collaborative discussion on performance, as well as a review of each individual director prior to his or her nomination for reelection, provides a meaningful assessment tool and a forum for discussing areas for improvement. | ||
| Communicating with the Board | ||
| All interested parties, including shareholders, may communicate directly with the Board, the Chairs of the Board’s standing committees and the independent directors, including our Chairman. | ||
| Communications may be sent by regular mail to our principal executive offices, to the attention | |||||
Chief Legal Officer and Corporate Secretary Marathon Petroleum Corporation 539 South Main Street Findlay, OH | |||||
| Independent Directors (individually or as a group) | non-managedirectors@marathonpetroleum.com | ||||
| Audit Committee Chair | auditchair@marathonpetroleum.com | ||||
| Compensation and Organization Development Committee Chair | compchair@marathonpetroleum.com | ||||
| Corporate Governance and Nominating Committee Chair | corpgovchair@marathonpetroleum.com | ||||
| Sustainability and Public Policy Committee Chair | sustainabilitychair@marathonpetroleum.com | ||||
| Our Chief Legal Officer and Corporate Secretary will forward to the directors all communications that, in her judgment, are appropriate for consideration by the directors. Examples of communications that would not be considered appropriate include commercial solicitations and matters not relevant to the Company’s affairs. | ||
| CORPORATE GOVERNANCE | ||
| Key Areas of Board Oversight | ||
| Oversight of Risk Management | ||
| Among the Board’s most important functions is overseeing risk management. Our risk management framework fosters close interaction among the Board, its committees and our senior management. | ||
| BOARD OF DIRECTORS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Board, which has the ultimate responsibility for, and is actively engaged in, overseeing risk: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
•Reviews strategic risks annually at a designated strategy meeting and on an ongoing basis throughout the year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
•Delegates responsibility for managing certain types of risk to its committees, which report regularly to the Board on activities in their individual areas of oversight | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AUDIT COMMITTEE | COMPENSATION AND ORGANIZATION DEVELOPMENT COMMITTEE | CORPORATE GOVERNANCE AND NOMINATING COMMITTEE | SUSTAINABILITY AND PUBLIC POLICY COMMITTEE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oversees risks associated with financial, financial reporting and accounting matters Monitors compliance with regulatory requirements and internal control systems Oversees our Reviews ESG and climate risk disclosures within the financial reporting framework Oversees business continuity, data privacy and cybersecurity risks | Oversees risks associated with our compensation programs, plans and policies to ensure they do not encourage excessive risk-taking Oversees our management succession planning process and our human capital management strategies and policies, including DE&I Oversees stakeholder engagement on compensation and human capital management matters | Oversees risks associated with corporate governance matters, including director independence, Board composition and succession, Board leadership structure and Board effectiveness Oversees the evaluation of the Board, its committees and individual directors Oversees stakeholder engagement on corporate governance matters | Oversees risks associated with sustainability, ESG, safety and public policy Reviews our sustainability and climate reports and other key sustainability disclosures Oversees establishment of our sustainability targets Oversees governance framework and budgets for our political contributions and lobbying expenditures Oversees stakeholder engagement related to sustainability, ESG and public policy matters | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SENIOR MANAGEMENT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| While the Board oversees risk, our senior management has primary responsibility for: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
•Identifying, assessing and managing the major risks to our Company through our | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
•Implementing effective risk mitigation plans, processes and controls | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
•Developing sustainability strategies and standards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
•Publicly disclosing material risks to our Company in the Risk Factors section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, filed with the SEC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| We apply | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Our mature company practices – developed through our ERM process, managed by our senior leaders and overseen by our Board – promote effective decision-making on business, financial, legal, environmental, social, political and reputational matters. | ||
| CORPORATE GOVERNANCE | ||
| Oversight of Political Engagement and Public Policy | ||
| We believe participating in the | ||
•Oversees the governance framework and budgets for our political contributions, lobbying expenditures and certain payments made to trade associations that engage in lobbying activities; •Reviews our reporting and disclosures on such contributions, expenditures and payments; •Oversees the governance of a U.S.-based political committee of our employees; •Oversees our framework for the development of our public policy positions; •Reviews legislative and regulatory developments and trends pertaining to public policy matters; and •Oversees our engagement with stakeholders on public policy matters. | ||
| We engage on a variety of issues affecting our Company and our stakeholders. With respect to climate change, our public policy engagement is guided by our commitment to sustainability, including lowering the carbon intensity of our operations and products, expanding renewable fuels and technologies, conserving natural resources, engaging stakeholders and contributing in our communities. We support policies that complement this strategy and the investments that continue to transform our Company. | ||
| 8 | |||||||||||||||||
| FIND MORE AT WWW.MARATHONPETROLEUM.COM | |||||||||||||||||
| Because we recognize that our public policy activities are of interest to our shareholders and other stakeholders, and in furtherance of our policy to be transparent on these matters, we have included on our “Political Engagement” page, located under the “Sustainability” tab of our website, substantial additional information regarding our involvement in political or public policy activities, including: | |||||||||||||||||
| Ø | Our statements of philosophy and political | ||||||||||||||||
| Ø | |||||||||||||||||
| Ø | Federal lobbying disclosure, including a link to the Clerk of the U.S. House of Representatives database where our quarterly federal lobbying reports can be obtained via a search of “Marathon Petroleum,” and a total spending figure for each of the past five | ||||||||||||||||
| Ø | State lobbying disclosure, including a map showing the states where within the past five years we have registered as an employer or principal of lobbyists, links to each state’s lobbying reporting site, and an approximate total of state reported lobbying expenditures for the past five | ||||||||||||||||
| Ø | Employee political action committee reports showing federal- and state-level contributions for each of the past five | ||||||||||||||||
| Ø | Corporate political contributions reports showing contributions made from Company treasury funds for each of the past five | ||||||||||||||||
| Ø | Trade association disclosure, including a report of trade associations (with dues of $50,000 or greater and that may engage in lobbying activities) for each of the past five years and the range of annual dues paid to each organization, as well as amounts attributable to federal lobbying or state and grassroots lobbying and | ||||||||||||||||
| Ø | A summary of the climate positions of our trade associations with dues of $50,000 or greater and that may engage in lobbying activities, with links to information on their respective climate positions, as well as our conclusion that these positions are not inconsistent with the ambition of the Paris Agreement to reduce global GHG emissions and limit global warming to well below 2 degrees | ||||||||||||||||
| Ø | Our contributions to social welfare organizations for lobbying and advocacy purposes, beginning with 2022 | ||||||||||||||||
| CORPORATE GOVERNANCE | ||
| Oversight of Climate Risk | ||
We carefully review, evaluate and manage climate-related risks and opportunities to enable us to adapt and strengthen our resiliency. The Sustainability and Public Policy Committee oversees our environmental impact, including climate matters, reviews our sustainability and climate reports and other key sustainability disclosures, and oversees the establishment of our sustainability targets. | ||
| Oversight of Human Capital Management and Succession Planning | ||
The Board believes that our people are our most important asset and are critical to our success. We strive to provide our employees with a collaborative, supportive and inclusive work environment where they can maximize their personal and professional potential. The Compensation and Organization Development Committee oversees our human capital management strategies and policies, including with respect to diversity and inclusion initiatives, pay equity, talent and performance management and employee engagement, and reviews our | ||
| The Compensation and Organization Development Committee oversees our executive succession planning process to ensure the identification and development of future leaders, to avoid the adverse effects caused by vacancies in key leadership positions and to facilitate the execution of our long-term strategy. The Committee believes its succession process provides the lead time necessary to train, develop or recruit executives capable of filling key roles, including our | ||
| 2023 SUCCESSION PLANNING PROCESS | ||||||||||||||||||||||||||||||||||||||||
| MARCH: Talent Planning | APRIL and MAY: Leader Talent Reviews | |||||||||||||||||||||||||||||||||||||||
| By | By | |||||||||||||||||||||||||||||||||||||||
•Identify | ð | •Based on | ||||||||||||||||||||||||||||||||||||||
•Assess potential leaders for these roles, including their ability to reinforce our high-performing culture and promote our core values | ||||||||||||||||||||||||||||||||||||||||
| ñ | ò | |||||||||||||||||||||||||||||||||||||||
| JULY: Committee Oversight | JUNE: Executive Leadership Team Alignment | |||||||||||||||||||||||||||||||||||||||
| Compensation and Organization Development Committee: | Across enterprise: | |||||||||||||||||||||||||||||||||||||||
•Review and provide input on proposed •Review diversity analysis of successor candidates | ||||||||||||||||||||||||||||||||||||||||
•Understand top talent strengths, potential and gaps •Finalize proposed | ||||||||||||||||||||||||||||||||||||||||
| Oversight of Cybersecurity | ||
| The frequency and sophistication of global attacks on corporate information technology systems containing sensitive information have increased. The Audit Committee oversees our business continuity, data privacy and cybersecurity risks and provides input on our cyber and information security strategy. Our Chief Information Security Officer is responsible for our cybersecurity program and provides routine briefings to the Audit Committee and the Board as a whole at least twice a year. | ||
We manage cybersecurity risks by working | ||
| CORPORATE GOVERNANCE | ||
| Director Compensation | ||
| The Board determines annual cash and equity retainers and other compensation for non-employee directors. Directors who are also our employees receive no compensation for their service on the Board or its committees. | ||
| Annual Retainers | ||
| Our non-employee directors received the following cash and equity retainers for their service on the Board in | ||
| Annual Total | |||||||||||||||||
| Cash Retainers | |||||||||||||||||
•Paid quarterly in equal installments | |||||||||||||||||
–Board Member | $150,000 | ||||||||||||||||
–Independent Chairman of the Board | $350,000 | ||||||||||||||||
| Additional Committee Chair Cash Retainers | •Paid quarterly in equal installments (in addition to Board Member retainer) | ||||||||||||||||
–Audit Committee Chair | $25,000 | ||||||||||||||||
–Compensation and Organization Development Committee Chair | $20,000 | * | |||||||||||||||
–Corporate Governance and Nominating Committee Chair | $20,000 | * | |||||||||||||||
–Sustainability and Public Policy Committee Chair | $20,000 | * | |||||||||||||||
| Equity Retainer | •Granted quarterly in equal installments | ||||||||||||||||
•Aggregate equity retainer is composed of 90% MPC •Directors receive MPC dividend equivalents in the form of additional MPC RSUs and MPLX distribution equivalents in the form of additional MPLX phantom units •MPC RSUs and MPLX phantom units, including those received as dividend and distribution equivalents, are deferred, payable in MPC common stock and MPLX common units only upon a director’s departure from the Board | |||||||||||||||||
| $175,000 | |||||||||||||||||
| * | Committee Chair retainer was increased to $25,000 effective October 1, 2023. | |||||||
| Non-employee directors may elect to defer up to 100% of their annual cash compensation into an unfunded account. This deferred cash account may be invested in certain notional investment options offered under the Marathon Petroleum Corporation Deferred Compensation Plan for Non-Employee Directors, which options generally mirror the investment options offered to employees under the Marathon Petroleum Thrift Plan. Directors who defer cash compensation receive that cash in a lump sum following departure from the Board. | ||
| Special Committee Service | ||
| In 2023, the Board formed a special committee, composed of Messrs. Cohen, Galante, Stice and Surma and Ms. Rucker, to focus on succession planning for the CEO role, including a review of succession candidates and consideration of any waiver or extension of our mandatory retirement policy. Directors serving on this committee received an additional cash retainer of $15,000 for such service. | ||
| MPLX GP LLC Board Service | ||
| Messrs. Semple, Stice and Surma also serve on the | ||
| Matching | ||
| CORPORATE GOVERNANCE | ||
| The following table shows compensation earned by or paid to our non-employee directors during | ||
| Name | Name | Fees Earned or Paid in Cash ($) | Stock Awards ($) | All Other Compensation ($) | Total ($) | Name | Fees Earned or Paid in Cash ($) | Stock Awards ($) | All Other Compensation ($) | Total ($) | ||||||||||||||||||||||||||||||||||||||||||||||
| Abdulaziz F. Alkhayyal | Abdulaziz F. Alkhayyal | 150,000 | 175,000 | — | 325,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Abdulaziz F. Alkhayyal | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Abdulaziz F. Alkhayyal | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Evan Bayh | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Evan Bayh | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Evan Bayh | Evan Bayh | 170,000 | 175,000 | — | 345,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Charles E. Bunch | Charles E. Bunch | 170,000 | 175,000 | 10,000 | 355,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Charles E. Bunch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Charles E. Bunch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jonathan Z. Cohen | Jonathan Z. Cohen | 150,000 | 175,000 | 10,000 | 335,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Steven A. Davis | 112,500 | 131,250 | 35,000 | 278,750 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jonathan Z. Cohen | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jonathan Z. Cohen | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Edward G. Galante | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Edward G. Galante | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Edward G. Galante | Edward G. Galante | 170,000 | 175,000 | 10,000 | 355,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Kim K.W. Rucker | Kim K.W. Rucker | 150,000 | 175,000 | — | 325,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Kim K.W. Rucker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kim K.W. Rucker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frank M. Semple | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frank M. Semple | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frank M. Semple | Frank M. Semple | 240,000 | * | 285,000 | * | 9,590 | 534,590 | * | 242,500 | * | * | 288,750 | * | * | 10,000 | 541,250 | 541,250 | * | * | |||||||||||||||||||||||||||||||||||||
| J. Michael Stice | J. Michael Stice | 240,000 | * | 285,000 | * | 6,250 | 531,250 | * | J. Michael Stice | 257,500 | * | * | 288,750 | * | * | — | 546,250 | 546,250 | * | * | ||||||||||||||||||||||||||||||||||||
| John P. Surma | John P. Surma | 440,000 | * | 285,000 | * | 5,000 | 730,000 | * | John P. Surma | 457,500 | * | * | 288,750 | * | * | 10,000 | 756,250 | 756,250 | * | * | ||||||||||||||||||||||||||||||||||||
| Susan Tomasky | Susan Tomasky | 175,000 | 175,000 | — | 350,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Toni Townes-Whitley** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Toni Townes-Whitley** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Toni Townes-Whitley** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * | Includes compensation for MPLX Board service, as detailed immediately below under “Fees Earned or Paid in Cash” and “Stock Awards.” | ||||
| ** | Ms. Townes-Whitley’s term of service on the Board was March 1, 2023 through June 30, 2023. | ||||
Fees Earned or Paid in Cash reflect (i) cash retainers earned for Board service in | ||
Stock Awards reflect the aggregate grant date fair value of MPC RSUs and MPLX phantom units, calculated in accordance with financial accounting standards. Non-employee directors generally received grants each quarter of MPC RSUs and MPLX phantom units valued at $39,375 and $4,375, respectively, based on the closing prices of MPC common stock and MPLX common units on each | ||
| The following table shows the aggregate MPC RSUs and MPLX phantom units outstanding for each non-employee director as of December 31, | ||
| Name | ||||||||||||||||||||||||||||||||||||||||||||||||
| Name | ||||||||||||||||||||||||||||||||||||||||||||||||
| Name | Name | MPC RSUs | MPLX Phantom Units | MPC RSUs | MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||
| Alkhayyal | Alkhayyal | 19,791 | 5,268 | |||||||||||||||||||||||||||||||||||||||||||||
| Alkhayyal | ||||||||||||||||||||||||||||||||||||||||||||||||
| Alkhayyal | ||||||||||||||||||||||||||||||||||||||||||||||||
| Bayh | ||||||||||||||||||||||||||||||||||||||||||||||||
| Bayh | ||||||||||||||||||||||||||||||||||||||||||||||||
| Bayh | Bayh | 52,365 | 7,862 | |||||||||||||||||||||||||||||||||||||||||||||
| Bunch | Bunch | 24,245 | 6,159 | |||||||||||||||||||||||||||||||||||||||||||||
| Bunch | ||||||||||||||||||||||||||||||||||||||||||||||||
| Bunch | ||||||||||||||||||||||||||||||||||||||||||||||||
| Cohen | Cohen | 10,736 | 2,881 | |||||||||||||||||||||||||||||||||||||||||||||
| Davis | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Cohen | ||||||||||||||||||||||||||||||||||||||||||||||||
| Cohen | ||||||||||||||||||||||||||||||||||||||||||||||||
| Galante | ||||||||||||||||||||||||||||||||||||||||||||||||
| Galante | ||||||||||||||||||||||||||||||||||||||||||||||||
| Galante | Galante | 14,203 | 3,849 | |||||||||||||||||||||||||||||||||||||||||||||
| Rucker | Rucker | 14,203 | 3,849 | |||||||||||||||||||||||||||||||||||||||||||||
| Rucker | ||||||||||||||||||||||||||||||||||||||||||||||||
| Rucker | ||||||||||||||||||||||||||||||||||||||||||||||||
| Semple | ||||||||||||||||||||||||||||||||||||||||||||||||
| Semple | ||||||||||||||||||||||||||||||||||||||||||||||||
| Semple | Semple | 9,324 | 34,621 | Includes 32,148 MPLX phantom units earned for MPLX Board service. | 10,802 | 41,971 | 41,971 | Includes 38,720 MPLX phantom units earned for MPLX Board service | Includes 38,720 MPLX phantom units earned for MPLX Board service | |||||||||||||||||||||||||||||||||||||||
| Stice | Stice | 18,645 | 30,884 | Includes 25,884 MPLX phantom units earned for MPLX Board service. | Stice | 20,341 | 37,881 | 37,881 | Includes 31,863 MPLX phantom units earned for MPLX Board service | Includes 31,863 MPLX phantom units earned for MPLX Board service | ||||||||||||||||||||||||||||||||||||||
| Surma | Surma | 52,365 | 52,641 | Includes 44,778 MPLX phantom units earned for MPLX Board service. | Surma | 54,847 | 61,697 | 61,697 | Includes 52,547 MPLX phantom units earned for MPLX Board service | Includes 52,547 MPLX phantom units earned for MPLX Board service | ||||||||||||||||||||||||||||||||||||||
| Tomasky | Tomasky | 14,203 | 3,849 | |||||||||||||||||||||||||||||||||||||||||||||
| Townes-Whitley | ||||||||||||||||||||||||||||||||||||||||||||||||
| Townes-Whitley | ||||||||||||||||||||||||||||||||||||||||||||||||
| Townes-Whitley | ||||||||||||||||||||||||||||||||||||||||||||||||
All Other Compensation reflects contributions made to educational institutions under our matching gifts program, as described above. This program is subject to an annual limit of $10,000; however, the actual amount paid | ||
SUSTAINABILITY AT MPC | ||
| Our commitment to sustainability means | ||
| STRENGTHEN RESILIENCY | |||||||||||||||||
  | Strengthening our business for today, while building durability for the future | ||||||||||||||||
| We operate with an understanding of the potential environmental impacts of our business. This understanding informs our commitment to lower the carbon intensity of our operations and the products we manufacture, improve the energy efficiency of our operations and advance practices that conserve natural resources. | |||||||||||||||||
| INNOVATE FOR THE FUTURE | |||||||||||||||||
  | Investing in the energy evolution to lower carbon intensity and capture value | ||||||||||||||||
| We strive to be a market leader in the production and delivery of renewable fuels, seek ways to expand the use of renewable energy in our operations and deploy emerging technologies that reduce environmental impact while enhancing business performance. | |||||||||||||||||
| EMBED SUSTAINABILITY | |||||||||||||||||
  | Embracing sustainability in decision-making, in how we engage our people and in how we create value with stakeholders | ||||||||||||||||
| We are committed to protecting the health and safety of our employees and the public, responsibly managing our social impacts, promoting diversity, equity and inclusion, and maintaining accountable and transparent governance. | |||||||||||||||||
| Since 2011, we have published an annual Sustainability Report highlighting the commitment to our values, our communities and environmental stewardship. Our most recent Sustainability Report, published July 2023, is: | ||
  | ü | Informed by the oil and gas industry metrics from the Sustainability Accounting Standards Board (SASB) standards. | |||||||||
| ü | Prepared | ||||||||||
| ü | Consistent with International Petroleum Industry Environmental Conservation Association (Ipieca) Sustainability Reporting Guidance for the Oil and Gas Industry (2020) and includes core reporting elements for each presented indicator. | ||||||||||
| Ä | |||||||||||
Find the Sustainability Report at www.marathonpetroleum.com/Sustainability/. | |||||||||||
| Living Our Core Values | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Our | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Safety & Environmental Stewardship | Integrity | Respect | Inclusion | Collaboration | |||||||||||||||||||||||||||||||||||||||||||||||||
Protect our people and the world we all share Aim for an incident-free, injury-free workplace Demonstrate our unwavering commitment to safe and environmentally responsible operations every day | Set high expectations for ourselves and build trust in each other, with business partners, shareholders and the communities where we work and live Say what we’re going to do — and then do it Behave ethically in all we do | Treat everyone professionally, with courtesy, honesty and trust Consider how other people’s ideas can improve what we do and encourage everyone to openly share their perspectives, ideas and concerns | Value diversity in culture, background, perspective and experiences Strive to provide our employees with a collaborative, supportive and inclusive work environment where they can maximize their full potential for personal and business success | Actively partner with our stakeholders to find and create shared value, making a positive difference together Foster constructive, solution-oriented dialogues Genuinely listen to one another and seek out perspectives different from our own | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 Proxy Statement | 29 | |||||||
| SUSTAINABILITY AT MPC | ||
| Engaging with Our Stakeholders | |||||||||||||||||
| Our approach to stakeholder engagement is guided by our commitment to creating shared value with our many stakeholders, including employees, shareholders, business partners, customers, the communities where we | |||||||||||||||||
| stakeholders to share their concerns. As our business and stakeholder interests evolve, we continue to adapt and expand our approach to engagement to meet the changing needs of our Company and our stakeholders. | |||||||||||||||||
| Lowering Our Carbon Footprint and Conserving Natural Resources | ||
| We are committed to | ||
Methane Emissions Intensity | Freshwater Withdrawal Intensity | |||||||||||||||||||||||||||||||||||||||||||||||||
  |   |  |  | |||||||||||||||||||||||||||||||||||||||||||||||
| l | 2030 Goal | l | 2030 Goal | l | 2025 Goal | l | 2030 Goal | |||||||||||||||||||||||||||||||||||||||||||
| l | Progress (through December 31, 2023)* | l | Progress (through December 31, 2023)* | l | ||||||||||||||||||||||||||||||||||||||||||||||
| 2030 Goal | l | Progress (through December 31, 2022) | ||||||||||||||||||||||||||||||||||||||||||||||||
| l | Progress (through December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
| * 2023 estimated values are preliminary and subject to change. See our most recent Climate Report on our website for additional information on how we calculate GHG intensity. | ||||||||||||||||||||||||||||||||||||||||||||||||||
 |  | |||||||||||||||||||
| We have outlined a number of tangible programmatic initiatives to support achievement of these targets in our | |||||||||||
  | ü | ||||||||||
| ü | Provides a detailed look at | ||||||||||
| ü | Concludes MPC is well positioned to remain successful into the future. | ||||||||||
| Ä | Find the Climate Report at www.marathonpetroleum.com/Sustainability/. | ||||||||||
| SUSTAINABILITY AT MPC | ||
| Investing in Our Employees | ||
 | PROMOTING A CULTURE OF SAFETY | ||||||||||||||||||||||
| Our number-one priority is the safety of our employees, contractors, business partners, customers and communities. To continually reinforce a strong safety culture and performance, we use a combination of proven management systems, best practice-based operational standards, and documented work processes and programs. All employees and contractors are empowered to create and maintain a safe and healthy workplace and are held to the same high standards and expectations. | |||||||||||||||||||||||
  | ||||||||
| We believe that | ||||||||
  | |||||||||||||||||
 | |||||||||||||||||
 | FOSTERING EMPLOYEE ENGAGEMENT | ||||||||||||||||
| Understanding our employees’ experiences and perspectives provides insights that strengthen and better position us for the future. We have implemented a | |||||||||||||||||
 | DEVELOPING EMPLOYEES AND LEADERS | |||||||
| Investing in our workforce is one of the best investments we can make as a company. We equip our employees at every level with trainings that provide the knowledge and skills necessary to perform their daily job functions safely and successfully. Simultaneously, we support our employees with a wide range of development opportunities and tools to help them advance and grow their careers within MPC. | ||||||||
  | |||||||||||||||||
| Compensation and benefits serve to attract, acknowledge and encourage quality performance and meaningful contributions from our employees. To confirm we are offering competitive pay and benefits packages, we annually benchmark compensation among our peers. We offer comprehensive benefits, including: medical, dental, vision and wellness sessions; retirement programs (pension and 401(k) plans); education reimbursement; giving and volunteerism program with company match; paid parental leave for all parents; flexible work arrangements; family leave; relocation assistance; an employee assistance program; competitive bonus programs; paid vacation time; and adoption assistance. | |||||||||||||||||
 | SUPPORTING EMPLOYEE GIVING AND VOLUNTEERISM | |||||||||||||
| Our employees are dedicated to helping communities, and we support them through our MPC Giving and Volunteer Programs. To back their investments of time and money, we provide a robust matching gifts program and reward those who volunteer in the communities where we live and work. Under our Employee Open Giving Program, we match 100% of employee donations, dollar for dollar, to qualified 501(c)(3) organizations, up to $10,000 per calendar year. Our Matching Gifts for Higher Education Program provides a company match of up to $10,000 for qualified gifts to two- and four-year accredited colleges and universities. And our Volunteer Incentive Program allows employees to earn a $500 award for the charity of their choice by volunteering 24 hours or more with a qualified nonprofit. | ||||||||||||||
| SUSTAINABILITY AT MPC | ||
| Respecting Human Rights | ||
| Advancing Supply Chain Sustainability | |||||||||||
| How we conduct ourselves is just as important as the results we achieve. This expectation applies not just to our employees, but also to our valued partners who play a role in the safe, responsible and reliable operation of our business. Our Supplier Code of Conduct details our expectations of our suppliers’ standards and work practices. | |||||||||||
The Supplier Code of Conduct emphasizes our expectations in the areas of: | |||||||||||
•Environment, health, safety and security • •Conflict minerals •Conflicts of interest •Diversity •Human rights • •Reporting unethical or illegal acts | |||||||||||
| Our report on Creating Shared Value Through a Just and Responsible Transition, | |||||||||||
| 8 | ||||||||||||||||||||
| FIND MORE AT WWW.MARATHONPETROLEUM.COM | ||||||||||||||||||||
| The “Sustainability” tab of our website offers a more comprehensive look at our corporate responsibility and sustainability programs. The policies, practices and procedures that underpin these efforts, as well as key disclosures showing our progress, can be found under “Reports and | ||||||||||||||||||||
| Ø | Sustainability Report | Ø | ||||||||||||||||||
| Ø | ||||||||||||||||||||
| Perspectives on Climate-Related Scenarios | Ø | |||||||||||||||||||
| Ø | Performance Data, including GHG emissions | Ø | Policy on Human Rights, Including the Rights of Indigenous People | |||||||||||||||||
| Ø | HES&S Beliefs and Policy | |||||||||||||||||||
| Ø | Supplier Code of Conduct | |||||||||||||||||||
| Ø | Equal Employment Opportunity Policy | Ø | Creating Shared Value Through a Just and Responsible Transition | |||||||||||||||||
| AUDIT MATTERS | ||
| Proposal 2. Ratify the Appointment of Our Independent Auditor for | ||
| ü | The Board of Directors recommends you vote FOR ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the year ending December 31, | ||||||||||||||||
| Our Audit Committee is responsible for appointing, replacing, compensating and overseeing the work of the independent auditor. | ||
| We expect representatives of PwC to be present at our virtual Annual Meeting, with an opportunity to make a statement if they desire to do so, and to be available to respond to appropriate questions from our shareholders. | ||
| Auditor | ||
| Services | 2022 | 2021 | ||||||||||||||||||||||||
| ($) | ($) | |||||||||||||||||||||||||
| Audit | 10,439 | 11,059 | ||||||||||||||||||||||||
| Audit-Related | 360 | 200 | ||||||||||||||||||||||||
| Tax | 743 | 623 | ||||||||||||||||||||||||
| All Other | 9 | 7 | ||||||||||||||||||||||||
| Total | 11,551 | 11,889 | ||||||||||||||||||||||||
| Audit Committee Oversight | ||
| The Audit Committee has responsibility for appointing, setting the compensation for and overseeing the work of | ||
| Pre-Approval of Audit Services | ||
| Our Pre-Approval of Audit, Audit-Related, Tax and Permissible Non-Audit Services Policy sets forth the procedure for the Audit Committee to pre-approve all audit, audit-related, tax and permissible non-audit services, other than as provided under a de minimis exception. Our CFO annually presents the Audit Committee with a forecasted budget of audit, audit-related, tax and permissible non-audit services, and updates the Committee throughout the year as needed. The Audit Committee may pre-approve any services to be performed by our independent auditor up to 12 months in advance and may pre-approve services by specific categories pursuant to the forecasted budget. | ||
| For unbudgeted items, the Audit Committee has delegated pre-approval authority of up to $500,000 to the Committee’s Chair; such items are reported to the full Audit Committee at its next scheduled meeting. | ||
| In | ||
| Certain Hiring Guidelines | ||
| We have established Guidelines for Hiring of Employees or Former Employees of the Independent Auditor that ensure our compliance with applicable law and NYSE listing standards. | ||
| 2024 Proxy Statement | 33 | |||||||||||||
| AUDIT MATTERS | ||
| 8 | ||||||||||||||
| FIND MORE AT WWW.MARATHONPETROLEUM.COM | ||||||||||||||
| The following are available under the “Investors” tab of our website by selecting “Corporate Governance”: | ||||||||||||||
| Ø | Pre-Approval of Audit, Audit-Related, Tax and Permissible Non-Audit Services Policy | |||||||||||||
| Ø | Guidelines for Hiring of Employees or Former Employees of the Independent Auditor | |||||||||||||
| Auditor Fees and Services | ||
| Aggregate fees for professional services rendered to the Company by PwC for the years ended December 31, 2023 and 2022 were ($ in thousands): | ||
| Services | 2023 ($) | 2022 ($) | ||||||||||||||||||||||||
| Audit | 10,904 | 10,439 | ||||||||||||||||||||||||
| Audit-Related | — | 360 | ||||||||||||||||||||||||
| Tax | — | 743 | ||||||||||||||||||||||||
| All Other | 2 | 9 | ||||||||||||||||||||||||
| Total | 10,906 | 11,551 | ||||||||||||||||||||||||
Audit Fees for the years ended December 31, 2023, and December 31, 2022, were for professional services rendered for the audit of consolidated financial statements and internal controls over financial reporting; the performance of subsidiary, statutory and regulatory audits; the issuance of comfort letters; the provision of consents; and the review of documents filed with the SEC. | ||
Audit-Related Fees for the year ended December 31, 2022, were for professional services and support provided to the purchaser of our Speedway business pursuant to the terms of a transition services agreement, which are reimbursed by the purchaser. | ||
Tax Fees for the year ended December 31, 2022, were for professional services rendered for income tax compliance and consultation services. | ||
All Other Fees for the years ended December 31, 2023, and December 31, 2022, were for an accounting research and disclosure checklist software license. All Other Fees for the year ended December 31, 2022, also included conference registration fees. | ||
| MPLX, a consolidated subsidiary of MPC, separately pays its own independent auditor fees, which totaled $6.9 million for the year ended December 31, 2023, and $7.2 million for the year ended December 31, 2022. | ||
| Audit Committee Report | |||||||||||||||||||||||
| The Audit Committee has reviewed and discussed with management MPC’s audited financial statements and | AUDIT COMMITTEE | ||||||||||||||||||||||
| Susan Tomasky, Chair | |||||||||||||||||||||||
| Jonathan Z. Cohen, Vice Chair | |||||||||||||||||||||||
| Abdulaziz F. Alkhayyal | |||||||||||||||||||||||
| Kim K.W. Rucker | |||||||||||||||||||||||
| Frank M. Semple | |||||||||||||||||||||||
| J. Michael Stice | |||||||||||||||||||||||
| EXECUTIVE COMPENSATION | ||
| Proposal 3. Approve, on an Advisory Basis, our Named Executive Officer Compensation | ||
| ü | The Board of Directors recommends you vote FOR approval, on an advisory basis, of the compensation of our named executive officers as disclosed in the Compensation Discussion and Analysis and related compensation tables and narratives | ||||||||||||||||
Pursuant to Section 14A of the | ||
Additionally, we think constructive dialogue with our shareholders provides meaningful feedback about specific executive compensation practices and programs, and we encourage shareholders to communicate directly with both Company management and the Compensation and Organization Development Committee about executive compensation. As discussed in “Shareholder Feedback and ‘Say-on-Pay,’” on page | ||
Shareholders may also | ||
We conduct annual shareholder advisory votes on | ||
| Ä | Please read the Compensation Discussion and Analysis | ||||||||||
| The Board of Directors recommends you approve the following resolution: | ||
| “RESOLVED, that the compensation paid to MPC’s named executive officers, as disclosed pursuant to Item 402 of Regulation S-K, including in the Compensation Discussion and Analysis, compensation tables and narrative discussion, is hereby APPROVED.” | ||
| Although this vote is nonbinding, the Compensation and Organization Development Committee values | ||
| EXECUTIVE COMPENSATION | ||
| Proposal 4. Recommend, on an Advisory Basis, the Frequency of Future Advisory Votes to Approve Named Executive Officer Compensation | ||
| ü | The Board of Directors recommends you vote to conduct future advisory votes to approve the compensation of our named executive officers every 1 YEAR. | |||||||
| Pursuant to Section 14A of the Exchange Act, we are asking shareholders to recommend, on an advisory basis, whether future shareholder advisory votes to approve our NEO compensation (“say-on-pay”) should occur every one, two or three years. Shareholders are currently presented with this say-on-pay vote every year. | ||
| Our Board believes that a say-on-pay vote that occurs every year continues to be the best alternative for our Company and our shareholders. In determining its recommendation, our Board considered: | ||
•The annual say-on-pay vote has worked well because it allows our shareholders to provide the Compensation and Organization Development Committee the most frequent input on our executive compensation. •The annual say-on-pay vote aligns with the Compensation and Organization Development Committee’s annual executive compensation decision-making process, as described in this Proxy Statement. •The annual say-on-pay vote is consistent with our robust shareholder engagement program, which solicits feedback from investors and other stakeholders throughout the year on a variety of topics, including executive compensation. | ||
| Your Notice, proxy card or voting instruction form provides four choices for voting on Proposal 4: 1 YEAR; 2 YEARS; 3 YEARS; or ABSTAIN. Under our Bylaws, the option, if any, that receives a majority of the votes cast will be the option recommended by our shareholders. Because this proposal has multiple options, if none of the options receives the majority of votes cast, then we will consider our shareholders to have recommended the option receiving the greatest number of votes cast. | ||
| Although this vote is nonbinding, the Board values our shareholders’ opinions and will consider the voting results of this proposal when determining the frequency of future shareholder advisory votes on NEO compensation. We expect that the next shareholder advisory vote on the frequency of our say-on-pay vote to take place at our 2030 annual meeting. | ||
| Compensation and Organization Development Committee Report | ||||||||||||||||||||
| The Compensation and Organization Development Committee has reviewed and discussed the Compensation Discussion and Analysis for 2023 with management and, based on such review and discussions, recommended to the Board that the Compensation Discussion and Analysis be included in this Proxy Statement and incorporated by reference into the Annual Report on Form 10-K for the year ended December 31, 2023. | COMPENSATION AND ORGANIZATION DEVELOPMENT COMMITTEE | |||||||||||||||||||
| Edward G. Galante, Chair | ||||||||||||||||||||
| Kim K.W. Rucker, Vice Chair | ||||||||||||||||||||
| Abdulaziz F. Alkhayyal | ||||||||||||||||||||
| Charles E. Bunch | ||||||||||||||||||||
| Frank M. Semple | ||||||||||||||||||||
| 36 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||
| Executive Summary | ||
In this | ||
| Our | ||
|  |  |  |  | |||||||||||||||||||||||||||||||
| Michael J. Hennigan | |||||||||||||||||||||||||||||||||||
| Maryann T. Mannen | Timothy J. Aydt | Suzanne Gagle | Gregory S. Floerke | ||||||||||||||||||||||||||||||||
| President and CEO* | Executive Vice President and | ||||||||||||||||||||||||||||||||||
| General Counsel and Senior Vice President Government | |||||||||||||||||||||||||||||||||||
| STOCK PRICE REACHED A RECORD HIGH IN | ||
  | ||
| MPC OUTPERFORMED PEERS ON TOTAL SHAREHOLDER RETURN | |||||
  |   | ||||
| EXECUTIVE COMPENSATION | ||
| FINANCIAL PERFORMANCE | ||||||||||||||||||||||||||||||||
$ | net income attributable to MPC | $ | adjusted EBITDA* | $ | net cash from operations | |||||||||||||||||||||||||||
| SHAREHOLDER VALUE | ||||||||||||||||||||||||||
| ~ | $ | $5 billion | ||||||||||||||||||||||||
| increase in our quarterly dividend (from | in dividends paid to shareholders in 2023 | of capital returned to shareholders through share repurchases | additional repurchase authorization (announced in | |||||||||||||||||||||||
| RENEWABLES | RECOGNITION | |||||||||||||||||||
Produced nearly 149 million gallons of renewable diesel at our Dickinson, ND, renewable diesel facility 2024 capital plan allocates ~40% of MPC’s growth capital to renewables and carbon-reduction projects | Member of Dow Jones Sustainability North America Index for | |||||||||||||||||||
Energy Star® Partner of the Five MPC refineries earned EPA Energy Star certifications in 2023. Since refineries first became eligible for Energy Star certification in 2006, MPC has earned more certifications than all other refining companies combined. | ||||||||||||||||||||
| OUTSTANDING PERFORMANCE IN | ||||||||||||||||||||||||||
| BUSINESS PRIORITY | INCENTIVE PLAN ALIGNMENT | RESULTS | ||||||||||||||||||||||||
| Create shareholder value over time | •For • | Ø MPC stock price reached an all-time high in 2023 Ø Achieved three-year PSU TSR of | ||||||||||||||||||||||||
| Strengthen the competitive position of our assets | •Adjusted EBITDA per barrel metric, which comprises 30% of our | Ø Outperformed all other companies in the peer group on this metric | ||||||||||||||||||||||||
| Improve commercial performance | •Adjusted EBITDA metric comprises 20% of the •Distributable cash flow at MPLX per unit metric comprises 20% of the | Ø MPC achieved net income of Ø MPLX achieved net income of | ||||||||||||||||||||||||
| Lead in sustainable energy | • | Ø | ||||||||||||||||||||||||
| *Non-GAAP Financial Measures | ||
| MPC’s “adjusted EBITDA,” and MPLX’s “distributable cash flow” are not measures of financial performance under GAAP and may not be comparable to similarly titled measures reported by other companies. | ||
| Marathon Petroleum Corporation | ||||||||
| EXECUTIVE COMPENSATION | ||
| Executive Pay | ||
| Strong Alignment with Shareholders | ||
| Our compensation program is designed to reflect a strong alignment between our NEOs’ interests and our shareholders’ interests, which the Compensation and Organization Development Committee believes is a key component of a successful executive compensation program. We achieve this alignment by: | ||
| ü | Structuring a significant portion of our executives’ target pay in the form of long-term, equity-based compensation (74% for the CEO in | ||||
| ü | Tying our MPC performance-based long-term incentive awards to a three-year relative TSR measure. | ||||
| ü | Maintaining significant stock ownership requirements to ensure our executives hold a meaningful amount of our stock (see page 49 for more information on these guidelines). | ||||
| Strong Emphasis on Pay for Performance | |||||
| The Compensation and Organization Development Committee believes a strong emphasis on pay for performance drives financial results and value creation for our shareholders. The Committee ties pay to performance by: | |||||
| ü | Structuring a significant portion of our executives’ target pay as variable and at-risk, meaning there is no guarantee that the target value will be realized. For | ||||
| ü | Designing our short- and long-term incentive plans to reward the execution of our business strategy and to support the creation of shareholder value over time. | ||||
| ü | Evaluating our performance against rigorous, pre-established financial and | ||||
| Robust Process for Selecting Metrics and Establishing Goals | ||
| Our executive compensation program is designed to reward achievement of specific Company performance goals. Performance measures are aligned with our business strategy and culture, including goals relating to both financial and ESG performance. The Compensation and Organization Development Committee annually undertakes a robust process in selecting incentive plan metrics and establishing rigorous performance goals: | ||
PRIOR YEAR Q3 | Ø | Review guiding principles for executive compensation programs | ||||||||||||||||||
| Ø | Update on key executive compensation trends, including peer incentive plan design, provided by independent compensation consultant | |||||||||||||||||||
| ò | ||||||||||||||||||||
| Ø | Preview incentive plan structure for next fiscal year and review for alignment with executive compensation guiding principles, shareholder expectations and business strategy | |||||||||||||||||||
PRIOR YEAR Q4 | ||||||||||||||||||||
| Ø | Review performance level methodology for metrics, including: external benchmarking to understand the peer approach to setting performance goals for similar metrics; evaluation of MPC’s historical performance under each metric; and review of MPC’s business plan | |||||||||||||||||||
| ò | ||||||||||||||||||||
| Ø | Approve incentive plan metrics for the fiscal year | |||||||||||||||||||
| CURRENT YEAR Q1 | Ø | Establish threshold, target and maximum performance levels based on MPC's performance methodology | ||||||||||||||||||
| Ø | Set performance levels, with threshold levels viewed as likely achievable, target levels viewed as challenging but achievable, and maximum levels viewed as extremely difficult to achieve | |||||||||||||||||||
| The Compensation and Organization Development Committee certifies achievement of the performance measures under our | ||
| EXECUTIVE COMPENSATION | ||
| Decision-Making Process and Key Inputs | ||
| Our Compensation and Organization Development Committee is responsible for establishing and overseeing our executive compensation program and policies, consistent with our overall compensation guiding principles. The Committee considers a variety of factors in designing our program and making compensation decisions: | ||
| Executive Compensation Guiding Principles | Independent Compensation Consultant Input | Compensation Reference Group and Other Market Data | Shareholder Feedback | CEO Input and Performance Appraisals | ||||||||||||||||||||||
| ò | ò | ò | ò | ò | ||||||||||||||||||||||
| Compensation and Organization Development Committee Review and Decisions | ||||||||||||||||||||||||||
| Executive Compensation Guiding Principles | ||
| We believe our executive compensation program plays a critical role in maximizing long-term value for our shareholders, employees and other stakeholders. Our executive compensation guiding principles are embodied in our executive compensation program and policies, which are designed to: | ||
| v | Attract, retain, motivate and reward the highest-quality executive team by providing market-competitive compensation. | ||||
| v | Be simple and transparent so they can be clearly communicated both internally and externally. | ||||
| v | Create direct alignment between executive pay and the creation of shareholder value. | ||||
| v | Reward for execution of our business strategy and desired culture. | ||||
| v | Differentiate pay on the basis of performance, experience and skill set. | ||||
| Our Compensation and Organization Development Committee periodically reviews our executive compensation guiding principles to help ensure they achieve these objectives, making adjustments as necessary to reflect compensation reference group and industry practices, as well as shareholder feedback. | ||
| Independent Compensation Consultant | ||
| To promote objectivity in reviewing and analyzing market data and trends, the Compensation and Organization Development Committee has engaged an independent compensation consultant. The consultant reports directly to | ||
| ü | Designing and implementing our compensation program and policies to accomplish our objectives. | |||||||||||||||||||
| ü | Comparative data on the executive compensation programs and policies of companies in our compensation reference group, executive compensation surveys and general market trends. | |||||||||||||||||||
| ü | How our compensation program and policies align with | |||||||||||||||||||
See “Compensation Governance—Compensation Consultant Independence” on page 51 for additional information about the compensation consultant’s independence and related matters. | ||
| Compensation Reference Group and Other Market Data | ||
| Our | ||
| Marathon Petroleum Corporation | ||||||||
| EXECUTIVE COMPENSATION | ||
| 2023 COMPENSATION REFERENCE GROUP SELECTION CRITERIA | MPC POSITIONING RELATIVE TO GROUP | |||||||||||||||||||||||||||||||
| (at time of group selection) | ||||||||||||||||||||||||||||||||
| ¡ | Revenue between 0.2x to 2.0x of MPC’s, with at least 67% from U.S. operations | |||||||||||||||||||||||||||||||
| Revenue | ± | 100th Percentile | ||||||||||||||||||||||||||||||
| ¡ | EBITDA margins less than 20% | EBITDA | ± | |||||||||||||||||||||||||||||
| ¡ | Assets between 0.33x to 3.0x MPC’s | Assets | ± | |||||||||||||||||||||||||||||
| ¡ | Market capitalization between 0.33x to 3.0x MPC’s | Market Cap | ± | |||||||||||||||||||||||||||||
| ¡ | Number of employees between 0.25x to 4.0x MPC’s | # Employees | ± | 23rd Percentile | ||||||||||||||||||||||||||||
| 50th | ||||||||||||||||||||||||||||||||
| Avg: | ||||||||||||||||||||||||||||||||
| 3M Company | Phillips 66 | |||||||||||||||||||
| Archer-Daniels-Midland Company | Cummins Inc. | Halliburton Company* | PPG Industries, Inc. | |||||||||||||||||
| Baker Hughes Company* | Dow Inc. | Honeywell International Inc. | Schlumberger Limited* | |||||||||||||||||
| Bunge Limited | DuPont de Nemours, Inc. | Textron Inc.* | ||||||||||||||||||
| EOG Resources, Inc. | ||||||||||||||||||||
| Valero Energy Corporation | ||||||||||||||||||||
| EXECUTIVE COMPENSATION SURVEYS | ||||||||||||||||||||
FW Cook Executive Compensation Survey | ||||||||||||||||||||
| Shareholder Feedback and “Say-on-Pay” | ||
We regularly engage with our shareholders to solicit their feedback on a variety of important topics, including our executive compensation program. | ||
At our | ||
| 2023. The | ||
| * At its annual review of the Compensation Reference Group in April 2023, the Compensation and Organization Development Committee removed these companies from the 2024 Compensation Reference Group, and added the following companies: Cencora, Inc.; FedEx Corporation; Ford Motor Company; General Motors Company; Lockheed Martin Corporation; McKesson Corporation; RTX Corporation; United Parcel Service, Inc. This new reference group better reflects MPC’s current size and was used for reviewing executive pay levels and practices in early 2024. | ||
| EXECUTIVE COMPENSATION | ||
| Compensation Decisions | ||
| In addition to information and insight provided by the independent compensation consultant and feedback received from our shareholders, the Compensation and Organization Development Committee seeks input from the CEO on compensation decisions and performance appraisals for all officers in designated positions other than himself. The Committee then makes all final compensation decisions for our CEO and officers in designated positions in furtherance of our executive compensation guiding principles. | ||
| Executive Compensation Program for | ||
| Our executive compensation program for | ||
| FIXED COMPENSATION | VARIABLE, PERFORMANCE-BASED COMPENSATION | |||||||||||||||||||
| Base Salary | Ê | |||||||||||||||||||
v Provides a minimum base level of compensation to attract and retain key employees v Based on compensation reference group and other market data, individual skills and performance, and organizational succession needs v Reviewed at least annually and revised as appropriate | v Motivates achievement of our business strategy and desired culture, balancing short-term and long-term interests of MPC and its employees, shareholders and stakeholders v Determined based on Company performance v Reviewed at least annually and revised as appropriate | v Promote achievement of our business strategy and desired culture by linking compensation directly to long-term Company and stock performance v Metrics tied to shareholder value creation and financial performance strengthen alignment between our NEOs’ interests and our shareholders’ interests v Aid in retention v Reviewed at least annually and revised as appropriate | ||||||||||||||||||
| 60% MPC | ||||||||||||||||||||
| Value depends on MPC stock performance at vesting and relative PSU TSR achievement over 36 months | ||||||||||||||||||||
| 20% MPC RSUs | ||||||||||||||||||||
| Value depends on MPC stock performance at vesting | ||||||||||||||||||||
| 20% MPLX Phantom Units | ||||||||||||||||||||
| Value depends on MPLX common unit performance at vesting | ||||||||||||||||||||
| For our NEOs to earn and sustain competitive compensation, we must meet our strategic objectives, perform well relative to our peers and deliver value to our shareholders and stakeholders. | ||
| The Compensation and Organization Development Committee believes using a mix of cash and equity compensation encourages and motivates our NEOs to achieve both our short-term and long-term business objectives. Consistent with our guiding principles that executive compensation should be linked to performance and directly aligned with creating long-term value for our shareholders, a substantial majority of our NEOs’ compensation is at-risk and based on performance metrics tied to our business strategy and culture. The following table shows the target compensation mix approved during the Committee’s annual compensation review process in early | ||
| 2022 TARGET COMPENSATION MIX | |||||||||||||||||||||||||||||||||||||
| 2023 TARGET COMPENSATION MIX | 2023 TARGET COMPENSATION MIX | ||||||||||||||||||||||||||||||||||||
| Base Salary | Annual Cash Bonus | MPC PSUs | MPC RSUs | MPLX Phantom Units | |||||||||||||||||||||||||||||||||
Base Salary | |||||||||||||||||||||||||||||||||||||
Base Salary | |||||||||||||||||||||||||||||||||||||
Base Salary | Annual Cash Bonus | MPC Performance Share Units | MPC Restricted Stock Units | MPLX Phantom Units | |||||||||||||||||||||||||||||||||
| CEO | CEO | 10% | 16% | 44% | 15% | 15% | CEO | 10% | 16% | 44% | 15% | 15% | |||||||||||||||||||||||||
| 60% | |||||||||||||||||||||||||||||||||||||
| 60% | |||||||||||||||||||||||||||||||||||||
| 60% | Performance-Based | 30% Time-Based | |||||||||||||||||||||||||||||||||||
| 60% Performance-Based | 30% Time-Based | ||||||||||||||||||||||||||||||||||||
| 90% At Risk | |||||||||||||||||||||||||||||||||||||
| 90% At-Risk | |||||||||||||||||||||||||||||||||||||
| 90% At-Risk | |||||||||||||||||||||||||||||||||||||
| 90% At-Risk | |||||||||||||||||||||||||||||||||||||
Other Current NEOs (Average) | Base Salary | Annual Cash Bonus | MPC PSUs | MPC RSUs | MPLX Phantom Units | ||||||||||||||||||||||||||||||||
| 21% | 17% | 37% | 12.5% | 12.5% | |||||||||||||||||||||||||||||||||
| 54% Performance-Based | 25% Time-Based | ||||||||||||||||||||||||||||||||||||
OTHER NEOs Average | OTHER NEOs Average | Base Salary | Annual Cash Bonus | MPC Performance Share Units | MPC Restricted Stock Units | MPLX Phantom Units | |||||||||||||||||||||||||||||||
| 21% | 18% | 37% | 12% | 12% | |||||||||||||||||||||||||||||||||
| 79% At Risk | |||||||||||||||||||||||||||||||||||||
| 55% | |||||||||||||||||||||||||||||||||||||
| 55% | Performance-Based | 24% Time-Based | |||||||||||||||||||||||||||||||||||
| 79% At-Risk | |||||||||||||||||||||||||||||||||||||
| 79% At-Risk | |||||||||||||||||||||||||||||||||||||
| 79% At-Risk | “Performance-Based” means there is no guarantee that any value at all will be realized if the performance criteria are not met. | “At Risk” means there is no guarantee that the target value will be realized. | |||||||||||||||||||||||||||||||||||
“Performance-Based” means there is no guarantee that any value at all will be realized if the performance criteria are not met. | |||||||||||||||||||||||||||||||||||||
“Performance-Based” means there is no guarantee that any value at all will be realized if the performance criteria are not met. | |||||||||||||||||||||||||||||||||||||
“At-Risk” means there is no guarantee that the target value will be realized. | “At-Risk” means there is no guarantee that the target value will be realized. | ||||||||||||||||||||||||||||||||||||
| Marathon Petroleum Corporation | ||||||||
| EXECUTIVE COMPENSATION | ||
| In setting base salary for | ||
| Name | Name | Previous Base Salary ($) | Base Salary Effective April 1, 2022 ($) | Increase (%) | Name | Previous Base Salary ($) | Base Salary Effective March 31, 2023 ($) | Increase (%) | ||||||||||||||||||||||||||||||||
| Hennigan | Hennigan | 1,600,000 | 1,700,000 | 6.3 | ||||||||||||||||||||||||||||||||||||
| Hennigan | ||||||||||||||||||||||||||||||||||||||||
| Hennigan | ||||||||||||||||||||||||||||||||||||||||
| Mannen | Mannen | 925,000 | 950,000 | 2.7 | ||||||||||||||||||||||||||||||||||||
| Mannen | ||||||||||||||||||||||||||||||||||||||||
| Mannen | ||||||||||||||||||||||||||||||||||||||||
| Aydt | ||||||||||||||||||||||||||||||||||||||||
| Aydt | ||||||||||||||||||||||||||||||||||||||||
| Aydt | ||||||||||||||||||||||||||||||||||||||||
| Gagle | Gagle | 700,000 | 730,000 | 4.3 | ||||||||||||||||||||||||||||||||||||
| Aydt | 500,000 | 530,000 | 6.0 | |||||||||||||||||||||||||||||||||||||
| Gagle | ||||||||||||||||||||||||||||||||||||||||
| Gagle | ||||||||||||||||||||||||||||||||||||||||
| Floerke | Floerke | 560,000 | 590,000 | 5.4 | ||||||||||||||||||||||||||||||||||||
| Brooks | 800,000 | 825,000 | 3.1 | |||||||||||||||||||||||||||||||||||||
| Floerke | ||||||||||||||||||||||||||||||||||||||||
| Floerke | ||||||||||||||||||||||||||||||||||||||||
| All NEOs received base salary increases for | ||
Our NEOs participated in the | ||
ELIGIBLE EARNINGS ($) | |||||||||||||||||||||||||||||
| × | |||||||||||||||||||||||||||||
| Expressed as a percentage of | |||||||||||||||||||||||||||||
TARGET BONUS (%) | |||||||||||||||||||||||||||||
| × | |||||||||||||||||||||||||||||
COMPANY PERFORMANCE (%) | |||||||||||||||||||||||||||||
| +/- | |||||||||||||||||||||||||||||
Awards may be adjusted based upon the Committee’s assessment of each NEO’s organizational and individual performance. No upward individual performance adjustments may be made for the CEO; upward adjustments for other NEOs are capped at 15%. | |||||||||||||||||||||||||||||
INDIVIDUAL PERFORMANCE | |||||||||||||||||||||||||||||
| = | |||||||||||||||||||||||||||||
There is no guaranteed minimum ACB payout. Payout results may be above or below target based on actual Company and individual performance. Payouts are capped at 200% of each NEO’s target award. | |||||||||||||||||||||||||||||
FINAL AWARD ($) | |||||||||||||||||||||||||||||
| EXECUTIVE COMPENSATION | ||
The | ||
| Performance Metric | Performance Metric | Target Weighting | Threshold 50% Payout | Target 100% Payout | Maximum 200% Payout | Result | Performance Achieved | Performance Metric | Target Weighting | Threshold 50% Payout | Target 100% Payout | Maximum 200% Payout | Result | Performance Achieved | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 80% | 80% | FINANCIAL | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 80% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Relative Adjusted EBITDA per Barrel | 30% | 5th or 6th Position | 3rd or 4th Position | 1st or 2nd Position | 1st or 2nd Position | 60% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Relative Adjusted EBITDA per Barrel | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Relative Adjusted EBITDA per Barrel | 5th or 6th Position | 3rd or 4th Position | 1st or 2nd Position | (200% of target) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Relative Adjusted EBITDA per Barrel | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA (in millions) | 20% | $6,269 | $8,359 | td0,449 | td3,213 | 40% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Relative Adjusted EBITDA per Barrel | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA (in millions) | (200% of target) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACB Adjusted EBITDA (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributable Cash Flow at MPLX per Unit | 20% | $4.10 | $4.56 | $5.01 | $4.94 | 37% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACB Adjusted EBITDA (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributable Cash Flow at MPLX per Unit | (184% of target) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACB Adjusted EBITDA (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Refining and Corporate Costs (in millions) | 10% | $6,234 | $5,934 | $5,634 | $6,171 | 6% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributable Cash Flow at MPLX per Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributable Cash Flow at MPLX per Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributable Cash Flow at MPLX per Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Refining and Corporate Costs (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Refining and Corporate Costs (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Refining and Corporate Costs (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Refining and Corporate Costs (in millions) | (61% of target) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 20% | 20% | ENVIRONMENTAL, SOCIAL AND GOVERNANCE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 20% | 20% | ENVIRONMENTAL, SOCIAL AND GOVERNANCE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 22.8 | 22.4 | 22.4 | 10% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Greenhouse Gas Intensity | (200% of target) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 20% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Process Safety Events Score | 5% | 95 | 76 | 60 | 109 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Greenhouse Gas Intensity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Process Safety Events Score | (0% of target) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Greenhouse Gas Intensity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Designated Environmental Incidents | 5% | 63 | 47 | 39 | 52 | 4.22% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Greenhouse Gas Intensity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Designated Environmental Incidents | (84% of target) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Process Safety Events Score | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diversity, Equity & Inclusion | 5% | External hires are at least (Women / BIPOC): | 19% / 32% | 3.75% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Process Safety Events Score | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diversity, Equity & Inclusion | 23% / 27% | 26% / 30% | 30% / 34% | (75% of target) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Process Safety Events Score | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Designated Environmental Incidents | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Designated Environmental Incidents | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Designated Environmental Incidents | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diversity, Equity & Inclusion | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diversity, Equity & Inclusion | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diversity, Equity & Inclusion | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 20% / 27% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 20% / 27% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 20% / 27% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 100% | 100% | TOTAL TARGET WEIGHTING | Total Achieved: | 161% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 100% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 100% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relative Adjusted EBITDA per Barrel of | ||
ACB Adjusted EBITDA is a non-GAAP performance metric derived from our consolidated financial statements. It is calculated as earnings before interest and financing costs, interest income, income taxes, depreciation and amortization expense, adjusted to exclude the effects of impairments, inventory market valuation adjustments, acquisitions and divestitures and certain other | ||
Distributable Cash Flow | ||
Refining and Corporate Costs are our externally reported refining operating and corporate costs, excluding costs associated with our | ||
Greenhouse Gas | ||
Process Safety Events Score | ||
Designated Environmental Incidents measures environmental performance through tracking Tier 3 and Tier 4 | ||
Diversity, Equity & Inclusion measures our effectiveness toward reaching our five-year representation goals with respect to women and Black, Indigenous and People of Color (“BIPOC”). External hires exclude interns and conditional employees. | ||
| Marathon Petroleum Corporation | ||||||||
| EXECUTIVE COMPENSATION | ||
The performance levels for each metric were established in January | ||
| The Compensation and Organization Development Committee has sole discretion under the | ||
| The Compensation and Organization Development Committee also has discretion under the | ||
ACB Payouts for In February | ||
| Name | Name | 2022 Eligible Earnings ($) | Bonus Target as a % of Eligible Earnings | Target Bonus ($) | Final Award as a % of Target | Final Award ($) | Name | 2023 Eligible Earnings ($) | Bonus Target as a % of Eligible Earnings | Target Bonus ($) | Final Award as a % of Target | Final Award ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | Hennigan | 1,700,000 | 160 | 2,720,000 | 161 | 4,376,800 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | Mannen | 950,000 | 110 | 1,045,000 | 161 | 1,681,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | Gagle | 730,000 | 80 | 584,000 | 161 | 939,700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | 800,000 | 90 | 720,000 | 161 | 1,158,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | Floerke | 590,000 | 70 | 413,000 | 161 | 664,600 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Brooks | 612,115 | 90 | 550,904 | 100 | 550,900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mr. Hennigan’s 2023 ACB target percentage opportunity was increased, from 160% to 165% of eligible earnings, to reflect his experience and performance in his role. Mr. Aydt’s 2023 ACB target percentage opportunity was increased, from 90% to 100% of eligible earnings, to bring him closer to the market for his role. Target | ||
| EXECUTIVE COMPENSATION | ||
| Our | ||
2023 Annual Awards The Compensation and Organization Development Committee approved the following LTI mix and annual award amounts for our NEOs during its annual compensation review process in early 2023. To mitigate the effect of share price volatility, the number of awards granted is determined on the basis of the average 30-calendar day closing price prior to the grant date. Thus, these amounts may not match the accounting values shown in the “2023 Summary Compensation Table” and the “2023 Grants of Plan-Based Awards” table below. | ||
| Name | 60% MPC PSUs ($) | 20% MPC RSUs ($) | 20% MPLX Phantom Units ($) | Total 2023 LTI Target ($) | ||||||||||||||||||||||
| Hennigan | 8,040,000 | 2,680,000 | 2,680,000 | 13,400,000 | ||||||||||||||||||||||
| Mannen | 2,400,000 | 800,000 | 800,000 | 4,000,000 | * | |||||||||||||||||||||
| Aydt | 1,440,000 | 480,000 | 480,000 | 2,400,000 | ||||||||||||||||||||||
| Gagle | 1,440,000 | 480,000 | 480,000 | 2,400,000 | ||||||||||||||||||||||
| Floerke | 780,000 | 260,000 | 260,000 | 1,300,000 | ||||||||||||||||||||||
| * | As this table shows LTI target values for 2023, it does not include Ms. Mannen’s additional $500,000 special LTI award discussed below. | ||||
| The Compensation and Organization Development Committee increased Mr. Hennigan’s 2023 LTI target award opportunity by 9% over his 2022 LTI target award to reflect his experience and performance in his role. Mr. Aydt’s 2023 LTI target award opportunity represents a 71% increase over his 2022 LTI target award in consideration of his promotion to Executive Vice President Refining, effective September 1, 2022, and is consistent with market data for that role. There were no changes in 2023 LTI target award opportunity values from 2022 LTI target award opportunity values for the other NEOs. | |||||||||||||
MPC PSUs The Compensation and Organization Development Committee awards MPC PSUs to align our NEOs’ long-term compensation interests with our shareholders’ long-term investment interests by conditioning payout on our three-year PSU TSR performance relative to the peer group shown in the following table. Each PSU has a target value equal to the MPC common stock 30-day average closing price prior to the grant date. PSUs vest in full at the end of the performance period and are settled in cash. The actual payout value is based on MPC’s PSU TSR performance (which can range from 0% to 200%) multiplied by: (i) for 2021 and 2022 PSUs, MPC’s closing share price on the date the Committee certifies performance, and (ii) for 2023 PSUs, MPC’s average closing share price for the last 30 calendar days of the performance period. To provide greater alignment with shareholders, payout is capped at 100% when MPC’s PSU TSR is negative for the performance period. | ||
| PERFORMANCE PERIOD | ||||||||
| 2021 PSUs | 2022 PSUs | 2023 PSUs | ||||||
| January 1, 2021 - December 31, 2023 | January 1, 2022 - December 31, 2024 | January 1, 2023 - December 31, 2025 | ||||||
| PEER GROUP | ||||||||
BP p.l.c. Chevron Corporation CVR Energy, Inc. Delek US Holdings, Inc. | Exxon Mobil Corporation HF Sinclair Corporation* PBF Energy Inc. Phillips 66 | Valero Energy Corporation Median of Compensation Reference Group S&P 500 Index Alerian MLP Index | ||||||
| *For 2021 and 2022 PSUs, HollyFrontier Corporation. For 2023 PSUs, HF Sinclair Corporation. | ||||||||
| 46 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||
| PSU TSR CALCULATION | ||||||||
| (Ending Stock Price* - Beginning Stock Price*) + Cumulative Cash Dividends | ||||||||
| Beginning Stock Price* | ||||||||
| *For 2021 and 2022 PSUs, calculated as the average of each company’s closing stock price for the 20 trading days prior to each applicable date. For 2023 PSUs, calculated as the average of each company’s closing stock price for the 30 calendar days prior to each applicable date. | ||||||||
| PSU TSR PERFORMANCE ASSESSMENT | ||||||||||||||
| Below Threshold | Threshold | Target | Maximum | |||||||||||
| PSU TSR Performance Percentile | Below 30th | 30th | 50th | 100th (Highest) | ||||||||||
| Payout Percentage (% of Target)* | 0% | 50% | 100% | 200% | ||||||||||
| *Payout for performance between percentiles is determined using linear interpolation. | ||||||||||||||
| In January 2024, the Compensation and Organization Development Committee certified the final PSU TSR results for the 2021 PSUs as follows: | ||
| 2021 PSUs | Actual PSU TSR (%) | Position Relative to Peer Group | PSU TSR Performance Percentile | Payout Percentage (% of Target) | ||||||||||
| January 1, 2021 - December 31, 2023 | 277.19 | 2 of 13 | 91.67th | 183.33 | ||||||||||
| Each NEO’s 2021 PSU target award was multiplied by: (i) the Performance Percentage shown in the table above and (ii) MPC’s closing share price on the date the Committee certified performance, resulting in the following payouts: | ||
| Name | MPC 2021 PSU Target Award ($) | MPC 2021 PSU Target Award* (#) | Payout Percentage (%) | Performance-Adjusted PSUs (#) | MPC Closing Share Price on Certification Date ($) | Payout ($) | ||||||||||||||||||||||||||||||||
| Hennigan | 6,750,000 | 133,058 | 183.33 | 243,936 | 157.27 | 38,363,815 | ||||||||||||||||||||||||||||||||
| Mannen | 2,400,000 | 47,310 | 183.33 | 86,734 | 157.27 | 13,640,656 | ||||||||||||||||||||||||||||||||
| Aydt | 660,000 | 13,011 | 183.33 | 23,854 | 157.27 | 3,751,519 | ||||||||||||||||||||||||||||||||
| Gagle | 1,350,000 | 26,612 | 183.33 | 48,788 | 157.27 | 7,672,889 | ||||||||||||||||||||||||||||||||
| Floerke | 660,000 | 13,011 | 183.33 | 23,854 | 157.27 | 3,751,519 | ||||||||||||||||||||||||||||||||
| * Calculated as the target award value divided by the MPC common stock 30-day average closing price ($50.73) prior to the grant date (March 1, 2021). | ||||||||||||||||||||||||||||||||||||||
MPC RSUs The Compensation and Organization Development Committee awards MPC RSUs to promote our NEOs’ ownership of our common stock, aid in retention and help our NEOs | ||
MPLX Phantom Units Given our NEOs’ responsibility for managing assets and businesses related to MPLX, | ||
| * | MPLX LP | ||||||||||
| Name | 60% MPC PSUs (at target) ($) | 20% MPC RSUs ($) | 20% MPLX Phantom Units ($) | Total 2022 LTI Target ($) | ||||||||||||||||||||||
| Hennigan | 7,350,000 | 2,450,000 | 2,450,000 | 12,250,000 | ||||||||||||||||||||||
| Mannen | 2,400,000 | 800,000 | 800,000 | 4,000,000 | * | |||||||||||||||||||||
| Gagle | 1,440,000 | 480,000 | 480,000 | 2,400,000 | ||||||||||||||||||||||
| Aydt | 840,000 | 280,000 | 280,000 | 1,400,000 | ||||||||||||||||||||||
| Floerke | 780,000 | 260,000 | 260,000 | 1,300,000 | ||||||||||||||||||||||
| Brooks | 1,890,000 | 630,000 | 630,000 | 3,150,000 | ||||||||||||||||||||||
| * Does not include Ms. Mannen’s one-time additional $100,000 LTI award discussed below. | ||||||||||||||||||||||||||
| MPC PSU TSR PAYOUT PERCENTAGE CALCULATION | ||||||||||||||||||||
| PSU TSR Percentile | Below 30th | 30th | 50th | 100th (Highest) | ||||||||||||||||
| Payout (% of Target) | 0% | 50% | 100% | 200% | ||||||||||||||||
| PSU TSR Measurement Period | Actual PSU TSR (%) | Position Relative to Peer Group | Percentile Ranking (%) | PSU TSR Payout Percentage (% of Target) | ||||||||||||||||||||||
| 1/1/2020–12/31/2020 | -26.97 | 2nd of 11 | 90.00 | 100.00 | * | |||||||||||||||||||||
| 1/1/2021–12/31/2021 | 57.67 | 2nd of 11 | 90.00 | 180.00 | ||||||||||||||||||||||
| 1/1/2022–12/31/2022 | 82.05 | 3rd of 11 | 80.00 | 160.00 | ||||||||||||||||||||||
| 1/1/2020–12/31/2022 | 99.21 | 1st of 11 | 100.00 | 200.00 | ||||||||||||||||||||||
| Average: | 160.00 | |||||||||||||||||||||||||
| * Although our performance percentile ranking of 90.00% relative to our peers for the January 1, 2020, through December 31, 2020, measurement period would have resulted in a payout percentage higher than 100%, payout is capped at 100% in measurement periods when PSU TSR is negative. | ||||||||||||||||||||||||||
| Hennigan | Gagle | Aydt | Floerke | Brooks | ||||||||||||||||
| MPC 2020 Performance Units Granted (#) | 1,840,000 | 800,000 | 240,000 | 400,000 | 1,200,000 | * | ||||||||||||||
| Payout ($) | 2,944,000 | 1,280,000 | 384,000 | 640,000 | 1,746,570 | |||||||||||||||
| * Due to Mr. Brooks’ retirement prior to the end of the performance period, his number of MPC performance units actually vested was 1,091,606. | ||||||||||||||||||||
| MPLX TUR PAYOUT PERCENTAGE CALCULATION | ||||||||||||||||||||||||||
| Below Threshold | Threshold | Target | Maximum | |||||||||||||||||||||||
| TUR Percentile | Below 30th | 30th | 50th | 100th (Highest) | ||||||||||||||||||||||
| Payout (% of Target) | 0% | 50% | 100% | 200% | ||||||||||||||||||||||
| Actual TUR (%) | Percentile Ranking (%) | TUR Payout Percentage (% of Target) | |||||||||||||||||||||
| TUR Measurement Period | Position | ||||||||||||||||||||||
| 1/1/2020–12/31/2020 | 0.17 | 1st of 11 | 100.00 | 200.00 | |||||||||||||||||||
| 1/1/2021–12/31/2021 | 43.72 | 3rd of 11 | 80.00 | 160.00 | |||||||||||||||||||
| 1/1/2022–12/31/2022 | 21.90 | 7th of 11 | 40.00 | 75.00 | |||||||||||||||||||
| 1/1/2020–12/31/2022 | 64.37 | 5th of 11 | 60.00 | 120.00 | |||||||||||||||||||
| Average: | 138.75 | ||||||||||||||||||||||
| DCF Performance Period | Below Threshold (No Payout) | Threshold (50% Payout) | Target (100% Payout) | Maximum (200% Payout) | Actual DCF Attributable to MPLX | DCF Payout Percentage (% of Target) | |||||||||||||||||
| 1/1/2020–12/31/2020 | Below $3,775 | $3,775 | $4,194 | $4,404 | $4,327 | 163.42 | |||||||||||||||||
| 1/1/2021–12/31/2021 | Below $3,757 | $3,757 | $4,174 | $4,383 | $4,785 | 200.00 | |||||||||||||||||
| 1/1/2022–12/31/2022 | Below $4,169 | $4,169 | $4,632 | $4,864 | $4,981 | 200.00 | |||||||||||||||||
| Average: | 187.81 | ||||||||||||||||||||||
| Hennigan | Gagle | Aydt | Floerke | Brooks | ||||||||||||||||
| MPLX 2020 Performance Units Granted (#) | 460,000 | 200,000 | 60,000 | 100,000 | 300,000 | * | ||||||||||||||
| Payout ($) | 751,088 | 326,560 | 97,968 | 163,280 | 445,594 | |||||||||||||||
| * Due to Mr. Brooks’ retirement prior to the end of the performance period, his number of MPLX performance units actually vested was 272,902. | ||||||||||||||||||||
| 47 | ||||||||
| EXECUTIVE COMPENSATION | ||
| Other Benefits | ||
| In addition to the three key compensation elements described above, our NEOs are generally eligible to participate in our market-competitive health and life insurance plans, long-term and short-term disability programs, and retirement and severance programs. We also provide limited perquisites to our NEOs consistent with market-based trends. None of these additional programs are considered material by the Compensation and Organization Development Committee when making compensation decisions. | ||
Retirement Benefits Retirement benefits provided to our NEOs are designed to be consistent in value and aligned with benefits offered by the other companies with which we compete for talent. Benefits under our qualified and nonqualified plans are described in more detail | ||
Severance Benefits MPC and MPLX maintain change in control plans designed to (i) preserve executives’ economic motivation to consider a business combination that might result in job loss and (ii) compete effectively in attracting and retaining executives in an industry that features frequent mergers, acquisitions and divestitures. Our change in control benefits are described further in “Potential Payments | ||
Limited Perquisites Our NEOs receive limited perquisites, which are consistent with those offered by companies in our compensation reference group. | ||
| To offset the expense of obtaining professional tax, estate and financial planning services, we provide each of our officers, including our NEOs, with a $15,000 annual stipend. | ||||||||||||||
| Under our enhanced annual physical health program, our senior management, including our NEOs, are eligible for a comprehensive physical (generally in the form of a one-day appointment), with procedures similar to those available to all other employees under our health program. | ||||||||||||||
| The primary use of our corporate aircraft is for business purposes. The Board also has authorized Mr. Hennigan’s personal use of our corporate aircraft in the interest of his safety, security and | ||||||||||||||
Additionally, we entered into an aircraft time sharing agreement with Mr. Hennigan, effective January 1, 2021, pursuant to which he may elect to use our corporate aircraft for transportation and personal use from time to time on a time sharing basis and pay us for such use pursuant to the terms of the agreement. The agreement was approved by the Corporate Governance and Nominating Committee and is reviewed on an annual basis consistent with our Related Person Transactions Policy described on page | ||||||||||||||
| Given the significant public profile of Mr. Hennigan as our CEO and the publicity given to | ||||||||||||||
Reportable values for these benefits and perquisites, based on the incremental costs to us, are included in the “All Other Compensation” column of the | ||
| 48 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||
| Compensation Governance | ||
| Stock Ownership Guidelines | ||
| Our stock ownership guidelines align our executive officers’ long-term interests with those of our shareholders. These guidelines require the executive officers in the positions shown below to retain MPC common stock with a value at least equal to a target multiple of their annualized base salary. The targeted multiples vary depending upon the executive’s position and | ||
| Position | Multiple of Base Salary | |||||||
| CEO | 6x | |||||||
| MPC Executive Vice President (CEO Direct Report) | 4x | |||||||
MPC Senior Vice President (CEO Direct Report) ; MPLX Executive Vice President (CEO Direct Report) | 2.5x | |||||||
| All Other Executives (not reporting to the CEO) | 1x | |||||||
| Compliance with these guidelines is reviewed annually by the Compensation and Organization Development Committee. Shares of MPC common stock owned outright, shares held in the MPC Thrift Plan (401(k)) and RSUs are counted when determining whether an executive has met the required ownership level. Executives have five years following the establishment of, or an increase in, their applicable stock ownership guideline to achieve the applicable target multiple. Any executive who does not achieve the stock ownership guideline within this five-year window must hold all equity we grant (other than shares withheld to cover required tax obligations) until the applicable ownership guideline has been achieved. | ||
| Prohibition on Hedging and Pledging our Common Stock | ||
| Under our policy on trading of securities, none of our directors, officers (including our NEOs) or select employees designated under the policy may purchase or sell any financial instrument, including but not limited to put or call options, the price of which is affected in whole or in part by changes in the price of our securities, unless such financial instrument was issued by us to such director, officer or covered employee. Further, no director, officer or covered employee may participate in any hedging transaction related to our securities. This policy ensures that our directors, officers and covered employees bear the full risk of MPC common stock ownership. | ||
| If | ||
| In 2023, the NYSE implemented listing standards requiring listed companies to adopt a clawback policy meeting certain additional requirements. Accordingly, the Board adopted the Marathon Petroleum Corporation Officer Compensation Clawback Policy (the “MPC Officer Compensation Clawback Policy”) that consolidates: | ||
•MPC’s Existing Clawback Provisions under our ACB and LTI programs; | ||
| 2024 Proxy Statement | 49 | |||||||
| EXECUTIVE COMPENSATION | ||
•A new provision authorizing the Committee to claw back, at its discretion, compensation from a covered officer who engages in intentional misconduct that causes, or might reasonably be expected to cause, reputational harm that results in a material financial impact to MPC; and | ||
•The new mandatory clawback provisions required by the NYSE listing standards. | ||
| The Board determined to add the new provision covering reputational harm in response to the 45% level of support for a shareholder proposal that sought this addition at our 2023 annual meeting. | ||
| The provisions in the MPC Officer Compensation Clawback Policy are in addition to any clawback provisions under Section 304 of the Sarbanes-Oxley Act of | ||
| Mandatory Retirement Policy for Officers | ||
| Under our mandatory retirement policy, absent a waiver or extension, officers within our affiliated group of companies who are in executive or high policymaking positions are required to retire from service to the company coincident with, or immediately following, the first of the month after such officer reaches age 65. Mr. Hennigan will reach mandatory retirement on August 1, 2024. The Board has sole discretion to grant exceptions to this policy and | ||
| Compensation Risk Assessment | ||
| The Compensation and | ||
| COMPENSATION PROGRAM RISK-MITIGATING FACTORS | ||||||||||||||||||||
| ü | The balance between fixed versus variable compensation, cash versus equity, and short-term versus long-term incentives is appropriate. | |||||||||||||||||||
| ü | Our compensation programs are designed to appropriately mitigate risk: | |||||||||||||||||||
| ¡ | Compensation programs are structured, with a market-based maximum earning opportunity. | |||||||||||||||||||
| ¡ | Employee wealth creation is determined by sustained, multi-year performance, rather than by a single year. | |||||||||||||||||||
| ¡ | Independent directors have discretion in determining payouts under our incentive programs. | |||||||||||||||||||
| ü | Our processes for administering compensation programs are robust and include appropriate levels of review, approval and governance: | |||||||||||||||||||
| ¡ | The Compensation and Organization Development Committee, which is composed entirely of independent directors, administers our compensation programs. | |||||||||||||||||||
| ¡ | The Compensation and Organization Development Committee has engaged an independent compensation consultant to provide advice regarding market trends on compensation form, design and amount. | |||||||||||||||||||
| ü | We have adopted | |||||||||||||||||||
| ¡ | Executive officers are required to | |||||||||||||||||||
| ¡ | We maintain an insider trading policy, anti-hedging and pledging policies and a clawback | |||||||||||||||||||
| EXECUTIVE COMPENSATION | ||
| Compensation Consultant Independence | ||
| The Compensation and Organization Development Committee engaged FW Cook as its independent compensation consultant for | ||
| In determining that the advice it receives from its independent compensation consultant is objective and not influenced by the consultant’s working relationship with MPC or the Compensation and Organization Development Committee, the Committee assessed FW Cook’s independence by considering, among other factors: | ||
•FW Cook’s provision of other services to us; | ||
•The amount of fees we paid FW Cook, as a percentage of FW Cook’s total revenue; | ||
•FW Cook’s policies and procedures that are designed to prevent conflicts of interest; | ||
•Any business or personal relationship of any consulting team member with the members of our Board, the Compensation and Organization Development Committee or our executive officers; and | ||
•Any MPC stock owned by FW Cook or any consulting team member. | ||
| The Compensation and Organization Development Committee has considered and assessed all relevant factors, including those required by the SEC, that could give rise to a potential conflict of interest and determined that its engagement of FW Cook as its independent compensation consultant for | ||
| Tax Policy | ||
| Section 162(m) of the Internal Revenue Code of 1986 | ||
| Compensation Committee Interlocks and Insider Participation | ||
| Messrs. Galante (Chair), Alkhayyal, Bunch | ||
| 51 | ||||||||
| EXECUTIVE COMPENSATION | ||
| Executive Compensation Tables | ||
| The following table provides information regarding compensation for our | ||
| Name and Principal Position | Year | Salary ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation ($) | Total ($) | |||||||||||||||||||||||||||
Michael J. Hennigan President and CEO | 2022 | 1,675,343 | 13,925,769 | — | 4,376,800 | 595,747 | 714,873 | 21,288,532 | |||||||||||||||||||||||||||
| 2021 | 1,600,000 | 14,186,189 | — | 4,416,300 | 450,102 | 532,615 | 21,185,206 | ||||||||||||||||||||||||||||
| 2020 | 1,485,417 | 8,988,339 | 1,104,000 | 3,079,333 | 440,104 | 437,072 | 15,534,265 | ||||||||||||||||||||||||||||
Maryann T. Mannen Executive Vice President and CFO | 2022 | 943,835 | 4,660,985 | — | 1,681,500 | 226,420 | 205,670 | 7,718,410 | |||||||||||||||||||||||||||
| 2021 | 865,323 | 8,472,236 | — | 1,620,300 | 80,304 | 113,990 | 11,152,153 | ||||||||||||||||||||||||||||
Suzanne Gagle General Counsel and Senior Vice President, Government Affairs | 2022 | 722,603 | 2,728,389 | — | 939,700 | 47,848 | 141,793 | 4,580,333 | |||||||||||||||||||||||||||
| 2021 | 700,000 | 2,837,299 | — | 966,100 | 22,791 | 137,789 | 4,663,979 | ||||||||||||||||||||||||||||
| 2020 | 681,250 | 1,342,778 | 480,000 | 776,667 | 393,798 | 145,470 | 3,819,963 | ||||||||||||||||||||||||||||
Timothy J. Aydt Executive Vice President, Refining | 2022 | 612,849 | 1,591,599 | — | 1,158,600 | 37,080 | 122,213 | 3,522,341 | |||||||||||||||||||||||||||
Gregory S. Floerke MPLX Executive Vice President and Chief Operating Officer | 2022 | 582,603 | 1,477,916 | — | 664,600 | 103,263 | 110,700 | 2,939,082 | |||||||||||||||||||||||||||
Raymond L. Brooks Former Executive Vice President, Refining | 2022 | 595,068 | 3,581,003 | — | 550,900 | — | 312,360 | 5,039,331 | |||||||||||||||||||||||||||
| 2021 | 800,000 | 3,972,195 | — | 1,242,100 | 329,371 | 166,723 | 6,510,389 | ||||||||||||||||||||||||||||
| 2020 | 787,500 | 2,014,122 | 720,000 | 1,165,667 | 610,619 | 217,066 | 5,514,974 | ||||||||||||||||||||||||||||
| Name and Principal Position | Year | Salary ($) | Stock Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation ($) | Total ($) | ||||||||||||||||||||||||||||
Michael J. Hennigan President and CEO* | 2023 | 1,737,809 | 16,200,864 | 4,688,700 | 741,763 | 685,356 | 24,054,492 | ||||||||||||||||||||||||||||
| 2022 | 1,675,343 | 13,925,769 | 4,376,800 | 595,747 | 714,873 | 21,288,532 | |||||||||||||||||||||||||||||
| 2021 | 1,600,000 | 14,186,189 | 4,416,300 | 450,102 | 532,615 | 21,185,206 | |||||||||||||||||||||||||||||
Maryann T. Mannen Executive Vice President and CFO* | 2023 | 987,808 | 5,440,600 | 1,786,200 | 258,509 | 210,861 | 8,683,978 | ||||||||||||||||||||||||||||
| 2022 | 943,835 | 4,660,985 | 1,681,500 | 226,420 | 205,670 | 7,718,410 | |||||||||||||||||||||||||||||
| 2021 | 865,323 | 8,472,236 | 1,620,300 | 80,304 | 113,990 | 11,152,153 | |||||||||||||||||||||||||||||
Timothy J. Aydt Executive Vice President Refining | 2023 | 834,027 | 2,901,619 | 1,372,100 | — | 162,910 | 5,270,656 | ||||||||||||||||||||||||||||
| 2022 | 612,849 | 1,591,599 | 1,158,600 | 37,080 | 122,213 | 3,522,341 | |||||||||||||||||||||||||||||
Suzanne Gagle General Counsel and Senior Vice President Government Affairs* | 2023 | 745,123 | 2,901,619 | 974,300 | 325,976 | 141,589 | 5,088,607 | ||||||||||||||||||||||||||||
| 2022 | 722,603 | 2,728,389 | 939,700 | 47,848 | 141,793 | 4,580,333 | |||||||||||||||||||||||||||||
| 2021 | 700,000 | 2,837,299 | 966,100 | 22,791 | 137,789 | 4,663,979 | |||||||||||||||||||||||||||||
Gregory S. Floerke Executive Vice President and Chief Operating Officer of MPLX LP LLC | 2023 | 612,685 | 1,571,827 | 704,700 | 186,873 | 109,762 | 3,185,847 | ||||||||||||||||||||||||||||
| 2022 | 582,603 | 1,477,916 | 664,600 | 103,263 | 110,700 | 2,939,082 | |||||||||||||||||||||||||||||
| * Effective January 1, 2024, Ms. Mannen was elected President of MPC, and Mr. Hennigan ceased serving in that role. Mr. Hennigan continues to serve as our CEO. Effective January 5, 2024, Ms. Gagle retired following more than 30 years of service to MPC. | |||||||||||||||||||||||||||||||||||
Salary shows the actual amount earned during the year. See | ||
Stock | ||
| The Compensation and Organization Development Committee awards LTI to our NEOs based on intended target values, which reflect established compensation valuation methodologies that differ in some respects from the FASB ASC Topic 718 | ||
| PSUs are included in this column at their target value because target was determined to be the probable outcome for the applicable performance period at the time of grant of each award, consistent with the accounting treatment under GAAP. The maximum grant date value of the PSUs granted in 2023, assuming the highest level of performance achieved, is: Mr. Hennigan, $21,486,749; Ms. Mannen, $7,215,744; Mr. Aydt, $3,848,264; Ms. Gagle, $3,848,264; Mr. Floerke, $2,084,615. | ||
| The amount shown in this column for Ms. Mannen in 2023 includes the value of a $500,000 special LTI award, in the same mix as her 2023 LTI target award, awarded by the Compensation and | ||
PSUs granted in 2022 are included in the Stock Awards column for 2022. Their maximum value at grant date, assuming the highest level of performance achieved, is: | ||||||||||||||||||||
| Hennigan | Mannen | Gagle | Aydt | Floerke | Brooks | |||||||||||||||
| MPC PSUs ($) | 18,180,901 | 6,085,145 | 3,562,106 | 2,077,943 | 1,929,450 | 4,675,133 | ||||||||||||||
| 52 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||
Non-Equity Incentive Plan Compensation reflects the total ACB award earned for the year indicated, paid the following year. See | ||
Change in Pension Value and Nonqualified Deferred Compensation Earnings reflects the annual change in actuarial present value of accumulated benefits under | ||
All Other Compensation aggregates our contributions to defined contribution plans and the limited perquisites we offer to our NEOs, which are described in more detail | ||
| Name | |||||||||||||||||||||||||||||||||||||||||||||||||
| Name | |||||||||||||||||||||||||||||||||||||||||||||||||
| Name | Name | Personal Use of Corporate Aircraft ($) | Company Physicals ($) | Tax and Financial Planning ($) | Security ($) | Company Contributions to Defined Contribution Plans ($) | Other ($) | Total All Other Compensation ($) | |||||||||||||||||||||||||||||||||||||||||
| Hennigan | Hennigan | 260,661 | 4,000 | 15,000 | 4,408 | 427,501 | 3,303 | 714,873 | |||||||||||||||||||||||||||||||||||||||||
| Hennigan | |||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | |||||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | Mannen | 2,033 | 4,000 | 15,000 | — | 179,969 | 4,668 | 205,670 | |||||||||||||||||||||||||||||||||||||||||
| Mannen | |||||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | |||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | Gagle | — | 4,000 | 15,000 | — | 118,507 | 4,286 | 141,793 | |||||||||||||||||||||||||||||||||||||||||
| Aydt | — | 4,000 | 30,000 | — | 85,012 | 3,201 | 122,213 | ||||||||||||||||||||||||||||||||||||||||||
| Gagle | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | |||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | Floerke | — | 4,000 | 15,000 | — | 88,328 | 3,372 | 110,700 | |||||||||||||||||||||||||||||||||||||||||
| Brooks | — | 4,000 | 15,000 | — | 130,236 | 163,124 | 312,360 | ||||||||||||||||||||||||||||||||||||||||||
| Floerke | |||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | |||||||||||||||||||||||||||||||||||||||||||||||||
“Personal Use of Corporate Aircraft” reflects our aggregate incremental cost of personal use of corporate aircraft by our NEOs, their spouses or other guests for | ||
| “Company Contributions to Defined Contribution Plans” | ||
| “Other” reflects our aggregate incremental cost for Company-sponsored activities at | ||
| 53 | ||||||||
| EXECUTIVE COMPENSATION | ||
| The following table provides information regarding all MPC and MPLX plan-based awards, including cash-based incentive awards and equity-based awards, granted to our NEOs in | ||
| Name | Name | Type of Award | Grant Date | Estimated Possible Payouts Under Non-Equity Incentive Plan Awards | Estimated Future Payouts Under Equity Incentive Plan Awards | All Other Stock Awards: Number of Shares of Stock or Units (#) | Grant Date Fair Value of Stock and Option Awards ($) | Name | Type of Award | Grant Date | Estimated Possible Payouts Under Non-Equity Incentive Plan Awards | Estimated Future Payouts Under Equity Incentive Plan Awards | All Other Stock Awards: Number of Shares of Stock or Units (#) | Grant Date Fair Value of Stock and Option Awards ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | Hennigan | ACB | — | 2,720,000 | 5,440,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | 3/1/2022 | 31,630 | 2,372,566 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | 3/1/2022 | 47,444 | 94,888 | 189,776 | 9,090,451 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | 3/1/2022 | 74,924 | 2,462,752 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | 3/1/2023 | 77,345 | 2,666,856 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | Mannen | ACB | — | 1,045,000 | 2,090,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | 3/1/2022 | 10,587 | 794,131 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | 3/1/2022 | 15,880 | 31,759 | 63,518 | 3,042,573 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | 3/1/2022 | 25,077 | 824,281 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | 3/1/2023 | 25,974 | 895,584 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | 3/1/2023 | 13,853 | 477,651 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | Gagle | ACB | — | 584,000 | 1,168,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | 3/1/2022 | 6,197 | 464,837 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | 3/1/2022 | 9,296 | 18,591 | 37,182 | 1,781,053 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | 3/1/2022 | 14,679 | 482,499 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | ACB | — | 720,000 | 1,440,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | 3/1/2022 | 3,615 | 271,161 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | 3/1/2022 | 5,423 | 10,845 | 21,690 | 1,038,972 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | 3/1/2022 | 8,563 | 281,466 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | 3/1/2023 | 13,853 | 477,651 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | Floerke | ACB | — | 413,000 | 826,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | 3/1/2022 | 3,357 | 251,809 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | 3/1/2022 | 5,035 | 10,070 | 20,140 | 964,725 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | 3/1/2022 | 7,952 | 261,382 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Brooks | ACB | — | 550,904 | 1,101,808 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | 3/1/2022 | 8,134 | 610,131 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | 3/1/2022 | 12,200 | 24,400 | 48,800 | 2,337,566 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | 3/1/2022 | 19,267 | 633,306 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX Phantom Units | 3/1/2023 | 7,504 | 258,738 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * | MPLX phantom units, granted under the 2018 MPLX Incentive Compensation Plan and valued on the basis of MPLX’s common unit price. | ||||
Approval Dates. The MPC | ||
MPC RSUs generally vest in equal installments on the first, second and third anniversaries of the grant | ||
MPC PSUs generally vest following a 36-month performance period and are settled 100% in cash. Unvested PSUs do not accrue dividends or dividend equivalents and do not have voting rights. The target PSUs shown reflect the target dollar value of each award divided by the MPC common stock 30-day average closing price prior to the grant date. The threshold, which is the minimum possible payout, is achieved when the relative PSU TSR percentile achieved is 30th, resulting in a payout percentage of 50%. Performance below this threshold would result in a payout of 0%. The maximum payout percentage is 200% of target. MPC PSUs are described in further detail beginning on page | ||
MPLX Phantom Units generally vest in equal installments on the first, second and third anniversaries of the grant date and are settled in MPLX common units. Distribution equivalents accrue on the phantom unit awards and are paid on the scheduled vesting dates. Holders of unvested phantom units have no voting rights. | ||
Grant Date Fair Value reflects the total grant date fair value of each equity award calculated in accordance with FASB ASC Topic 718. The MPC RSU value is based on the MPC common stock closing price ($ | ||
| 54 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||
| Outstanding Equity Awards at | ||
| The following table provides information regarding the outstanding equity awards held by our NEOs as of December 31, | ||
| Name | Name | Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Grant Date | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | |||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares or Units of Stock That Have Not Vested (#) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | Hennigan | MPC | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 156,663 | 18,234,007 | 227,946 | 53,061,270 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 138,863 | 4,560,261 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | Mannen | MPC | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 73,701 | 8,578,059 | 79,069 | 18,405,682 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 47,162 | 1,548,800 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | Gagle | 3/1/2017 | 26,967 | — | 50.99 | 3/1/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2018 | 13,817 | — | 64.79 | 3/1/2028 | MPC | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2019 | 30,126 | — | 62.68 | 3/1/2029 | 13,849 | 1,611,885 | 45,203 | 10,522,354 | |||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2020 | 32,753 | 16,377 | 47.73 | 3/1/2030 | MPLX | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 103,663 | 16,377 | 29,312 | 962,606 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | 3/1/2020 | — | 4,913 | 47.73 | 3/1/2030 | MPC | |||||||||||||||||||||||||||||||||||||||||||||||||
| — | 4,913 | 6,936 | 807,281 | 23,856 | 5,553,200 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 15,088 | 495,490 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | Floerke | 3/1/2020 | — | 8,189 | 47.73 | 3/1/2030 | MPC | ||||||||||||||||||||||||||||||||||||||||||||||||
| — | 8,189 | 7,115 | 828,115 | 23,081 | 5,372,796 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 51,598 | 1,694,478 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Brooks | MPC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 15,777 | 1,836,285 | 61,657 | 14,352,516 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 35,241 | 1,157,314 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares or Units of Stock That Have Not Vested reflect the number of unvested MPC RSUs and MPLX phantom units held on December 31, | ||
| MPC RSUs | MPLX Phantom Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPC RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPC RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPC RSUs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Name | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Name | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Name | Name | Grant Date | Number of RSUs That Have Not Vested (#) | Vesting Date | Grant Date | Number of Phantom Units That Have Not Vested (#) | Vesting Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | Hennigan | 3/1/2020 | 4,934 | 3/1/2023 | 3/1/2020 | 7,333 | 3/1/2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/17/2020 | 92,989 | 3/17/2023 | 3/1/2021 | 59,616 | 3/1/2023, 3/1/2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2021 | 28,381 | 3/1/2023, 3/1/2024 | 3/1/2022 | 71,914 | 3/1/2023, 3/1/2024, 3/1/2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | 30,359 | 3/1/2023, 3/1/2024, 3/1/2025 | 138,863 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 156,663 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 55,164 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 55,164 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 55,164 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | Mannen | 2/1/2021 | 52,600 | 2/1/2023, 2/1/2024 | 3/1/2021 | 22,085 | 3/1/2023, 3/1/2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2021 | 10,514 | 3/1/2023, 3/1/2024 | 3/1/2022 | 25,077 | 3/1/2023, 3/1/2024, 3/1/2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | 10,587 | 3/1/2023, 3/1/2024, 3/1/2025 | 47,162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 73,701 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | 3/1/2020 | 2,235 | 3/1/2023 | 3/1/2020 | 3,322 | 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2021 | 5,673 | 3/1/2023, 3/1/2024 | 3/1/2021 | 11,917 | 3/1/2023, 3/1/2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | 5,941 | 3/1/2023, 3/1/2024, 3/1/2025 | 3/1/2022 | 14,073 | 3/1/2023, 3/1/2024, 3/1/2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 13,849 | 29,312 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | Aydt | 3/1/2020 | 671 | 3/1/2023 | 3/1/2020 | 997 | 3/1/2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7,421 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7,421 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7,421 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10,506 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10,506 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10,506 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5,546 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5,546 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5,546 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 51,682 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 51,682 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 51,682 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2021 | 2,798 | 3/1/2023, 3/1/2024 | 3/1/2021 | 5,877 | 3/1/2023, 3/1/2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | 3,467 | 3/1/2023, 3/1/2024, 3/1/2025 | 3/1/2022 | 8,214 | 3/1/2023, 3/1/2024, 3/1/2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 6,936 | 15,088 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | 3/1/2020 | 1,118 | 3/1/2023 | 12/18/2015 | 36,476 | Upon termination without cause | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2021 | 2,775 | 3/1/2023, 3/1/2024 | 3/1/2020 | 1,661 | 3/1/2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | 3,222 | 3/1/2023, 3/1/2024, 3/1/2025 | 3/1/2021 | 5,829 | 3/1/2023, 3/1/2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7,115 | 3/1/2022 | 7,632 | 3/1/2023, 3/1/2024, 3/1/2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 51,598 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Brooks | 3/1/2021 | 7,947 | 3/1/2023, 3/1/2024 | 3/1/2021 | 16,693 | 3/1/2023, 3/1/2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2022 | 7,830 | 3/1/2023, 3/1/2024, 3/1/2025 | 3/1/2022 | 18,548 | 3/1/2023, 3/1/2024, 3/1/2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 15,777 | 35,241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * | In the event of Mr. Floerke’s termination of employment for any reason other than for cause, the MPLX phantom units he received as part of his retention award in 2015 will become payable. | ||||
Market Value of Shares or Units of Stock That Have Not Vested reflects the aggregate value of all unvested MPC RSUs and MPLX phantom units held on December 31, | ||
| 2024 Proxy Statement | 55 | |||||||
| EXECUTIVE COMPENSATION | ||
Equity Incentive Plan Awards That Have Not Vested reflects the number of unvested MPC PSUs held on December 31, | ||
| Name | Grant Date | Number of PSUs That Have Not Vested (#) | Performance Cycle | Name | Grant Date | Number of PSUs That Have Not Vested (#) | Performance Cycle | |||||||||||||||||||||||||||||||
| Hennigan | 3/1/2021 | 133,058 | 1/1/2021 - 12/31/2023 | Aydt | 3/1/2021 | 13,011 | 1/1/2021 - 12/31/2023 | |||||||||||||||||||||||||||||||
| 3/1/2022 | 94,888 | 1/1/2022 - 12/31/2024 | 3/1/2022 | 10,845 | 1/1/2022 - 12/31/2024 | |||||||||||||||||||||||||||||||||
| 227,946 | 23,856 | |||||||||||||||||||||||||||||||||||||
| Mannen | 3/1/2021 | 47,310 | 1/1/2021 - 12/31/2023 | Floerke | 3/1/2021 | 13,011 | 1/1/2021 - 12/31/2023 | |||||||||||||||||||||||||||||||
| 3/1/2022 | 31,759 | 1/1/2022 - 12/31/2024 | 3/1/2022 | 10,070 | 1/1/2022 - 12/31/2024 | |||||||||||||||||||||||||||||||||
| 79,069 | 23,081 | |||||||||||||||||||||||||||||||||||||
| Gagle | 3/1/2021 | 26,612 | 1/1/2021 - 12/31/2023 | Brooks | 3/1/2021 | 37,257 | 1/1/2021 - 12/31/2023 | |||||||||||||||||||||||||||||||
| 3/1/2022 | 18,591 | 1/1/2022 - 12/31/2024 | 3/1/2022 | 24,400 | 1/1/2022 - 12/31/2024 | |||||||||||||||||||||||||||||||||
| 45,203 | 61,657 | |||||||||||||||||||||||||||||||||||||
| Name | Grant Date | Number of PSUs That Have Not Vested (#) | Performance Cycle | Name | Grant Date | Number of PSUs That Have Not Vested (#) | Performance Cycle | ||||||||||||||||||||||||||||||||||||||||
| Hennigan | 3/1/2022 | 94,888 | 1/1/2022 - 12/31/2024 | Gagle | 3/1/2022 | 18,591 | 1/1/2022 - 12/31/2024 | ||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | 64,802 | 1/1/2023 - 12/31/2025 | 3/1/2023 | 11,606 | 1/1/2023 - 12/31/2025 | ||||||||||||||||||||||||||||||||||||||||||
| 159,690 | 30,197 | ||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | 3/1/2022 | 31,759 | 1/1/2022 - 12/31/2024 | Floerke | 3/1/2022 | 10,070 | 1/1/2022 - 12/31/2024 | ||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | 21,762 | 1/1/2023 - 12/31/2025 | 3/1/2023 | 6,287 | 1/1/2023 - 12/31/2025 | ||||||||||||||||||||||||||||||||||||||||||
| 53,521 | 16,357 | ||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | 3/1/2022 | 10,845 | 1/1/2022 - 12/31/2024 | ||||||||||||||||||||||||||||||||||||||||||||
| 3/1/2023 | 11,606 | 1/1/2023 - 12/31/2025 | |||||||||||||||||||||||||||||||||||||||||||||
| 22,451 | |||||||||||||||||||||||||||||||||||||||||||||||
Market Value of Equity Incentive Plan Awards That Have Not Vested reflects the aggregate value of all unvested MPC PSUs held on December 31, | ||
Nonforfeitability of Certain Awards. Each | ||
| When | ||
| 56 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||
| Option Exercises and Stock Vested in | ||
| The following table provides information regarding MPC stock options exercised by our NEOs in | ||
| Option Awards | Stock/Unit Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Option Awards | Option Awards | Stock Awards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Name | Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares/Units Acquired on Vesting (#) | Value Realized on Vesting ($) | Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares/Units Acquired on Vesting (#) | Value Realized on Vesting ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | Hennigan | MPC | 205,149 | 13,423,219 | 125,130 | 9,842,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | — | — | 48,077 | 1,575,670 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hennigan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | — | — | 64,220 | * | 2,224,592 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mannen | Mannen | MPC | — | — | 31,556 | 2,310,358 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | — | — | 11,042 | 360,300 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | — | — | 19,401 | * | 670,111 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | — | — | 7,238 | * | 251,168 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gagle | Gagle | MPC | 39,384 | 2,217,013 | 6,177 | 483,683 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | — | — | 11,621 | 379,914 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aydt | MPC | 57,582 | 2,996,217 | 2,500 | 197,708 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | — | — | 4,862 | 159,062 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | — | — | 14,543 | * | 503,499 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Floerke | Floerke | MPC | 46,244 | 1,417,060 | 3,117 | 244,225 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | — | — | 5,860 | 191,593 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Brooks | MPC | 278,101 | 13,287,449 | 8,895 | 693,758 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | — | — | 16,604 | 542,644 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPLX | — | — | 7,420 | * | 256,910 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * | MPLX phantom units, granted under the 2018 MPLX Incentive Compensation Plan and valued on the basis of MPLX’s common unit price. | ||||
Option Awards: Value Realized on Exercise reflects the actual pre-tax gain realized by our NEOs upon exercise of stock options, which is the fair market value of the shares at exercise less the per share grant price. We have not granted stock options since 2020. | ||
| 57 | ||||||||
| EXECUTIVE COMPENSATION | ||
| Post-Employment Benefits for | ||
| Name | Name | Plan Name | Number of Years Credited Service (#) | Present Value of Accumulated Benefit ($) | Payments During Last Fiscal Year ($) | Name | Plan Name | Number of Years Credited Service (#) | Present Value of Accumulated Benefit ($) | Payments During Last Fiscal Year ($) | |||||||||||||||||||||||||||||||||
| Hennigan | Hennigan | MPC Retirement Plan | 5.58 | 166,151 | — | ||||||||||||||||||||||||||||||||||||||
| MPC Excess Benefit Plan | 5.58 | 1,844,291 | — | ||||||||||||||||||||||||||||||||||||||||
| Hennigan | |||||||||||||||||||||||||||||||||||||||||||
| Hennigan | |||||||||||||||||||||||||||||||||||||||||||
| Excess Benefit Plan | |||||||||||||||||||||||||||||||||||||||||||
| Excess Benefit Plan | |||||||||||||||||||||||||||||||||||||||||||
| Excess Benefit Plan | |||||||||||||||||||||||||||||||||||||||||||
| Mannen | |||||||||||||||||||||||||||||||||||||||||||
| Mannen | |||||||||||||||||||||||||||||||||||||||||||
| Mannen | Mannen | MPC Retirement Plan | 2.00 | 53,599 | — | ||||||||||||||||||||||||||||||||||||||
| MPC Excess Benefit Plan | 2.00 | 253,125 | — | ||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||
| Aydt | |||||||||||||||||||||||||||||||||||||||||||
| Excess Benefit Plan | |||||||||||||||||||||||||||||||||||||||||||
| Excess Benefit Plan | |||||||||||||||||||||||||||||||||||||||||||
| Excess Benefit Plan | |||||||||||||||||||||||||||||||||||||||||||
| Gagle | |||||||||||||||||||||||||||||||||||||||||||
| Gagle | |||||||||||||||||||||||||||||||||||||||||||
| Gagle | Gagle | MPC Retirement Plan | 29.67 | 1,166,055 | — | ||||||||||||||||||||||||||||||||||||||
| MPC Excess Benefit Plan | 29.67 | 1,026,456 | — | ||||||||||||||||||||||||||||||||||||||||
| Aydt | MPC Retirement Plan | 37.58 | 1,825,876 | — | |||||||||||||||||||||||||||||||||||||||
| MPC Excess Benefit Plan | 37.58 | 1,227,365 | — | ||||||||||||||||||||||||||||||||||||||||
| Floerke | Floerke | MPC Retirement Plan | 7.00 | 187,471 | — | ||||||||||||||||||||||||||||||||||||||
| MPC Excess Benefit Plan | 7.00 | 548,461 | — | ||||||||||||||||||||||||||||||||||||||||
| Brooks | MPC Retirement Plan | 41.50 | — | 2,509,800 | |||||||||||||||||||||||||||||||||||||||
| MPC Excess Benefit Plan | 41.50 | 3,047,467 | — | ||||||||||||||||||||||||||||||||||||||||
| Floerke | |||||||||||||||||||||||||||||||||||||||||||
| Floerke | |||||||||||||||||||||||||||||||||||||||||||
| Excess Benefit Plan | |||||||||||||||||||||||||||||||||||||||||||
| Excess Benefit Plan | |||||||||||||||||||||||||||||||||||||||||||
| Excess Benefit Plan | |||||||||||||||||||||||||||||||||||||||||||
Number of Years Credited Service shows the number of years the NEO has participated in each plan. Plan participation service used to calculate each participant’s benefit under the | ||
Present Value of Accumulated Benefit for the legacy benefit under the | ||
| The present value of accumulated benefits for the cash balance benefits under the | ||
Our employees, including our NEOs, participate in the | ||
Legacy Benefit Prior to 2010, the monthly benefit was determined under the following legacy benefit formula: | |||||||||||||||||||||||
| 1.6% | × | Monthly Final Average Pay | × | Years of Participation | |||||||||||||||||||
| – | 1.33% | × | Monthly Estimated Primary Social Security Benefit | × | Years of Participation | ||||||||||||||||||
| Legacy Monthly Benefit | |||||||||||||||||||||||
Legacy Benefit Prior to 2010, the monthly benefit was determined under the following legacy benefit formula: | ||||||||
Legacy Monthly Benefit = (1.6% x Monthly Final Average Pay x Years of Participation) – (1.33% x Monthly Estimated Primary Social Security Benefit x Years of Participation) | |||
| This formula was amended effective January 1, 2010, to cease future accruals of additional participation years, and as applied to eligible NEOs, cease further compensation updates. No more than 37.5 participation years may be | ||
| 58 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||
| recognized under the formula. Eligible earnings include, but are not limited to, pay for hours worked, pay for allowed hours, military leave allowance, commissions, bonuses and elective deferrals to the | ||
| Under the legacy retirement benefit, a vested participant who is at least age 62 may retire prior to age 65 and receive an unreduced benefit. Ms. Gagle | ||
| Age at Retirement | 62 | 61 | 60 | 59 | 58 | 57 | 56 | 55 | 54 | 53 | 52 | 51 | 50 | ||||||||||||||||||||||||||||
| Early Retirement Factor | 100 | % | 97 | % | 94 | % | 91 | % | 87 | % | 83 | % | 79 | % | 75 | % | 71 | % | 67 | % | 63 | % | 59 | % | 55 | % | |||||||||||||||
| The plan was amended effective August 31, 2022, to allow an active participant who has attained age 59.5 to elect to take an in-service distribution of their legacy retirement benefit on or after December 1, 2022. | ||
Cash Balance Benefit Starting in 2010, benefit accruals are determined under the following cash balance formula: | ||||||||||||||||||||||||||||||||
| Annual Compensation | × | Pay Credit Percentage | ð | Participants receive pay credit percentages based on the sum of their age and cash balance service: | ||||||||||||||||||||||||||||
| Participant Points | Fewer than 50 Points | 50-69 Points | 70 Points or More | |||||||||||||||||||||||||||||
| + | Account Balance | × | Interest Credit Rate | |||||||||||||||||||||||||||||
| Pay Credit Percentage | 7% | 9% | 11% | |||||||||||||||||||||||||||||
| Cash Balance Annual Benefit | ||||||||||||||||||||||||||||||||
Cash Balance Benefit Starting in 2010, benefit accruals are determined under the following cash balance formula: | ||
Cash Balance Annual Benefit = (Annual Compensation x Pay Credit Percentage) + (Account Balance x Interest Credit Rate) | ||
| Participants receive pay credit percentages based on the sum of their age and cash balance service: | ||||||||||||||||||||
| Participant Points | Fewer than 50 Points | 50-69 Points | 70 Points or More | |||||||||||||||||
| Pay Credit Percentage | 7% | 9% | 11% | |||||||||||||||||
| Annual compensation is limited to | ||
The | ||
| With respect to | ||
| 59 | ||||||||
| EXECUTIVE COMPENSATION | ||
| Due to the structure of the frozen | ||
| The | ||
Tax-Qualified Defined Contribution Retirement Plan The | ||
| The | ||
| 60 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||
| The following table provides information regarding our nonqualified savings and deferred compensation plans. | ||
| Name | Name | Plan | Executive Contributions in Last Fiscal Year ($) | Company Contributions in Last Fiscal Year ($) | Aggregate Earnings in Last Fiscal Year ($) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at Last Fiscal Year-End ($) | Name | Plan | Executive Contributions in Last Fiscal Year ($) | Company Contributions in Last Fiscal Year ($) | Aggregate Earnings in Last Fiscal Year ($) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at Last Fiscal Year-End ($) | ||||||||||||||||||||||||||
| Hennigan | Hennigan | MPC Deferred Compensation Plan | — | — | (859,153) | — | 4,482,595 | |||||||||||||||||||||||||||||||||
| MPC Executive Deferred Compensation Plan | — | 406,090 | (87,596) | — | 597,955 | |||||||||||||||||||||||||||||||||||
| MPC 2012 Incentive Compensation Plan | — | — | 396,433 | 48,814 | 761,453 | |||||||||||||||||||||||||||||||||||
| MPC 2021 Incentive Compensation Plan | — | — | 60,413 | 2,427 | 57,986 | |||||||||||||||||||||||||||||||||||
| MPLX LP 2018 Incentive Compensation Plan | — | — | 395,088 | 54,359 | 548,537 | |||||||||||||||||||||||||||||||||||
| Hennigan | ||||||||||||||||||||||||||||||||||||||||
| Hennigan | ||||||||||||||||||||||||||||||||||||||||
| Executive Deferred Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPC 2012 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPC 2021 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPLX LP 2018 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| Mannen | Mannen | MPC Deferred Compensation Plan | — | — | (6,845) | — | 33,220 | |||||||||||||||||||||||||||||||||
| MPC Executive Deferred Compensation Plan | — | 158,558 | (13,961) | — | 144,597 | |||||||||||||||||||||||||||||||||||
| Executive Deferred Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| Aydt | ||||||||||||||||||||||||||||||||||||||||
| Deferred Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| Executive Deferred Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPC 2012 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPC 2021 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPLX LP 2018 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| Gagle | Gagle | MPC Excess Benefit Plan | — | — | 3,394 | — | 309,617 | |||||||||||||||||||||||||||||||||
| MPC Deferred Compensation Plan | — | — | (79,758) | — | 187,930 | |||||||||||||||||||||||||||||||||||
| MPC Executive Deferred Compensation Plan | 193,220 | 97,096 | (127,384) | — | 409,392 | |||||||||||||||||||||||||||||||||||
| MPC 2012 Incentive Compensation Plan | — | — | 16,264 | 14,790 | 23,997 | |||||||||||||||||||||||||||||||||||
| MPC 2021 Incentive Compensation Plan | — | — | 11,836 | 488 | 11,348 | |||||||||||||||||||||||||||||||||||
| MPLX LP 2018 Incentive Compensation Plan | — | — | 71,937 | 36,612 | 96,832 | |||||||||||||||||||||||||||||||||||
| Aydt | MPC Excess Benefit Plan | — | — | 2,421 | — | 180,137 | ||||||||||||||||||||||||||||||||||
| MPC Deferred Compensation Plan | — | — | (20,461) | — | 110,426 | |||||||||||||||||||||||||||||||||||
| MPC Executive Deferred Compensation Plan | — | 63,601 | (12,238) | — | 99,944 | |||||||||||||||||||||||||||||||||||
| MPC 2012 Incentive Compensation Plan | — | — | 7,942 | 5,981 | 11,836 | |||||||||||||||||||||||||||||||||||
| MPC 2021 Incentive Compensation Plan | — | — | 6,905 | 282 | 6,623 | |||||||||||||||||||||||||||||||||||
| MPLX LP 2018 Incentive Compensation Plan | — | — | 38,174 | 15,721 | 50,539 | |||||||||||||||||||||||||||||||||||
| Deferred Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| Executive Deferred Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPC 2012 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPC 2021 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPLX LP 2018 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| Floerke | Floerke | MPC Deferred Compensation Plan | — | — | (114,472) | — | 417,055 | |||||||||||||||||||||||||||||||||
| MPC Executive Deferred Compensation Plan | — | 66,917 | (14,672) | — | 114,169 | |||||||||||||||||||||||||||||||||||
| MPC 2012 Incentive Compensation Plan | — | — | 7,991 | 7,794 | 11,739 | |||||||||||||||||||||||||||||||||||
| MPC 2021 Incentive Compensation Plan | — | — | 6,412 | 258 | 6,154 | |||||||||||||||||||||||||||||||||||
| MPLX LP 2012 Incentive Compensation Plan | — | — | 105,416 | — | 669,791 | |||||||||||||||||||||||||||||||||||
| MPLX LP 2018 Incentive Compensation Plan | — | — | 36,956 | 18,979 | 49,001 | |||||||||||||||||||||||||||||||||||
| Brooks | MPC Excess Benefit Plan | — | — | 3,032 | (1,704) | 224,214 | ||||||||||||||||||||||||||||||||||
| MPC Deferred Compensation Plan | — | — | (174,618) | — | 569,706 | |||||||||||||||||||||||||||||||||||
| MPC Executive Deferred Compensation Plan | — | 108,825 | (31,732) | — | 201,242 | |||||||||||||||||||||||||||||||||||
| MPC 2012 Incentive Compensation Plan | — | — | 22,827 | 21,351 | 33,616 | |||||||||||||||||||||||||||||||||||
| MPC 2021 Incentive Compensation Plan | — | — | 15,536 | 580 | 14,956 | |||||||||||||||||||||||||||||||||||
| MPLX LP 2018 Incentive Compensation Plan | — | — | 98,027 | 52,105 | 133,092 | |||||||||||||||||||||||||||||||||||
| Executive Deferred Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPC 2012 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPC 2021 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPLX LP 2012 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
| MPLX LP 2018 Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||
Executive Contributions are also included in the “Salary” and “Non-Equity Incentive Plan Compensation” columns of the | ||
Company Contributions are also included in the “All Other Compensation” column of the | ||
Aggregate Earnings for long-term incentive and incentive compensation plans include accrued dividends/dividend equivalents and distribution equivalents on nonforfeitable MPC RSUs and MPLX phantom unit awards. | ||
Aggregate Withdrawals/Distributions represent the payment of dividends/dividend equivalents and distribution equivalents accrued on nonforfeitable awards. | ||
Aggregate Balance at Last Fiscal Year-End. Of the amounts shown in this column, the following amounts have been reported in our Summary Compensation Table for previous years: | ||
| Hennigan | Mannen | Gagle | Brooks | |||||||||||
| MPC Deferred Compensation Plan | 2,839,527 | 39,582 | 342,858 | 297,645 | ||||||||||
| Hennigan | Mannen | Aydt | Gagle | Floerke | |||||||||||||||||||
| Deferred Compensation Plan | 2,574,630 | 39,582 | — | 119,554 | — | ||||||||||||||||||
| Executive Deferred Compensation Plan | 670,987 | 158,558 | 63,601 | 513,620 | 66,917 | ||||||||||||||||||
The | ||
| 2024 Proxy Statement | 61 | |||||||
| EXECUTIVE COMPENSATION | ||
| Defined contribution accruals in the | ||
The | ||
The | ||
Section 409A Compliance All of our nonqualified deferred compensation plans in which our NEOs participate are intended to comply with, or be exempt from, Section 409A of the Internal Revenue Code. As a result, distribution of amounts subject to Section 409A may be delayed for six months following retirement or other separation from service where the participant is considered a “specified employee” for purposes of Section 409A. All of our NEOs are “specified employees” for purposes of Section 409A. | ||
| 62 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||
| Potential Payments Upon Termination or Change in Control | ||
| The following | ||
| Name | Scenario | Severance ($) | Additional Legacy Pension Benefits ($) | MPC Stock Options Vested ($) | MPC RSUs/MPLX Phantom Units Vested ($) | MPC PSUs Vested ($) | Other Benefits ($) | Total ($) | ||||||||||||||||||
| Hennigan | Voluntary Termination | — | — | — | — | — | — | — | ||||||||||||||||||
| Involuntary Termination without Cause or with Good Reason | — | — | — | — | — | — | — | |||||||||||||||||||
| Involuntary Termination for Cause | — | — | — | — | — | — | — | |||||||||||||||||||
| Change in Control with Qualified Termination | 9,634,817 | — | — | — | — | 17,497 | 9,652,314 | |||||||||||||||||||
| Death | — | — | — | — | — | — | — | |||||||||||||||||||
| Mannen | Voluntary Termination | — | — | — | — | — | — | — | ||||||||||||||||||
| Involuntary Termination without Cause or with Good Reason | — | — | — | — | — | — | — | |||||||||||||||||||
| Involuntary Termination for Cause | — | — | — | — | — | — | — | |||||||||||||||||||
| Change in Control with Qualified Termination | 7,710,900 | — | — | 10,126,859 | 9,202,841 | 11,446 | 27,052,046 | |||||||||||||||||||
| Death | — | — | — | 10,126,859 | 9,202,841 | — | 19,329,700 | |||||||||||||||||||
| Gagle | Voluntary Termination | — | — | — | — | — | — | — | ||||||||||||||||||
| Involuntary Termination without Cause or with Good Reason | — | — | — | — | — | — | — | |||||||||||||||||||
| Involuntary Termination for Cause | — | — | — | — | — | — | — | |||||||||||||||||||
| Change in Control with Qualified Termination | 5,088,300 | 11,262,149 | — | 369,226 | — | 11,638 | 16,731,313 | |||||||||||||||||||
| Death | — | — | — | 369,226 | — | — | 369,226 | |||||||||||||||||||
| Aydt | Voluntary Termination | — | — | — | — | — | — | — | ||||||||||||||||||
| Involuntary Termination without Cause or with Good Reason | — | — | — | — | — | — | — | |||||||||||||||||||
| Involuntary Termination for Cause | — | — | — | — | — | — | — | |||||||||||||||||||
| Change in Control with Qualified Termination | 4,211,400 | 11,462,214 | — | 110,839 | — | 10,139 | 15,794,592 | |||||||||||||||||||
| Death | — | — | — | 110,839 | — | — | 110,839 | |||||||||||||||||||
| Floerke | Voluntary Termination | — | — | — | — | — | — | — | ||||||||||||||||||
| Involuntary Termination without Cause or with Good Reason | — | — | — | — | — | — | — | |||||||||||||||||||
| Involuntary Termination for Cause | — | — | — | — | — | — | — | |||||||||||||||||||
| Change in Control with Qualified Termination | 3,798,600 | — | 562,257 | 1,382,543 | — | 8,310 | 5,751,710 | |||||||||||||||||||
| Death | — | — | 562,257 | 1,382,543 | — | — | 1,944,800 | |||||||||||||||||||
| Voluntary Termination | ||
Resignation We generally do not enter into employment or severance agreements with our NEOs. An NEO who voluntarily resigns is not entitled to a severance payment in most circumstances, is generally only eligible for a bonus under the | ||
Approved Separation NEOs generally are eligible for | ||
| An NEO who resigns pursuant to an Approved Separation is generally only eligible for a bonus under the ACB program if he or she remained employed through the end of the ACB performance period, unless the NEO is also retirement-eligible, in which case he or she is eligible for a bonus in their year of retirement as discussed below. | ||
| Under the terms of their respective award agreements, MPC PSUs, MPC RSUs and MPLX phantom units generally become nonforfeitable | ||
Retirement Our employees generally are eligible for retirement once they reach age 50 and have at least 10 years of vesting service with MPC or its subsidiaries. As of December 31, | ||
| Retirement-eligible NEOs | ||
Involuntary Termination Without Cause or Voluntary Termination With Good Reason We generally do not enter into employment or severance agreements with our NEOs. An NEO whose employment is terminated by us without cause, or who terminates employment with good reason, is eligible for (i) the same termination allowance plan available to all other employees, which would pay | ||
Involuntary Termination for Cause An NEO who is involuntarily terminated for cause will not be entitled to a severance payment or a bonus under the ACB program and will forfeit all unvested LTI awards unless provided otherwise in the applicable award agreement. | ||
| 2024 Proxy Statement | 63 | |||||||
| EXECUTIVE COMPENSATION | ||
Death | ||
| The following table shows compensation payable to our NEOs (or their beneficiaries), assuming death occurred on December 31, 2023. | ||
| Name | MPC RSUs/MPLX Phantom Units Vested ($)(1)(2) | MPC PSUs Vested ($)(1)(3) | Life Insurance Payout ($) | Total ($) | ||||||||||||||||||||||
| Hennigan | — | — | 3,000,000 | 3,000,000 | ||||||||||||||||||||||
| Mannen | 8,778,274 | 7,940,375 | 1,900,000 | 18,618,649 | ||||||||||||||||||||||
| Aydt | — | — | 1,600,000 | 1,600,000 | ||||||||||||||||||||||
| Gagle | — | — | 1,460,000 | 1,460,000 | ||||||||||||||||||||||
| Floerke | — | — | 1,180,000 | 1,180,000 | ||||||||||||||||||||||
(1) LTI amounts in this table reflect the value of equity that would vest on an accelerated basis upon death. Because of their eligibility for an Approved Separation, as discussed above, each NEO (other than Ms. Mannen) holds LTI awards that have become nonforfeitable by their terms. Awards no longer subject to forfeiture are not included in this table. See the tables and accompanying narrative under “Outstanding Equity Awards at 2023 Fiscal Year-End” for more information about these nonforfeitable awards and their respective vesting dates. | ||
(2) Amounts shown are calculated based on the closing prices of our common stock ($148.36) and MPLX common units ($36.72) on December 29, 2023, the last trading day of the year. | ||
(3) MPC PSUs would be paid out based on actual performance for the period from the grant date to the date of death, and target performance for the period from the date of death to the end of the performance cycle. Amounts shown are calculated using the PSUs’ target value ($148.36, the closing price of our common stock on December 29, 2023, the last trading day of the year). | ||
Change in Control Our NEOs participate in two change in control severance plans: the MPC Amended and Restated Executive Change in Control Severance Benefits Plan (“MPC CIC Plan”) and the MPLX Executive Change in Control Severance Benefits Plan (“MPLX CIC Plan”). These change in control plans were designed to (i) preserve executives’ economic motivation to consider a business combination that might result in job loss and (ii) compete effectively in attracting and retaining executives in an industry that features frequent mergers, acquisitions and divestitures. | |||||
| CHANGE IN CONTROL OF MPC | CHANGE IN CONTROL OF MPLX | ||||||||||||||||||||||||||||
| Life and health insurance benefits for up to 36 months after termination at the lesser of the current cost or the active employee | Life and health insurance benefits for up to 36 months after termination at the active employee | ||||||||||||||||||||||||||||
| Accelerated vesting of all outstanding MPC LTI | Accelerated vesting of all outstanding MPLX LTI | ||||||||||||||||||||||||||||
| 64 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||||||||
| Benefits under each plan are payable only upon a change in control and a Qualified Termination. A “Qualified Termination” generally occurs when an NEO’s employment with our affiliates and us ends in connection with, or within two years after, a change in control. Exceptions include: | ||
•Separation due to death or disability; •Termination for cause; •Termination after age 65; and •Voluntary termination without good reason ("good reason” includes a material reduction in roles, responsibilities, pay or benefits, or being required to relocate more than 50 miles from one’s current location). | ||
| In the event of a change in control and Qualified Termination under both plans, our NEOs would receive benefits under only one plan – whichever provides the greater benefits at that time. | ||
| The MPLX CIC Plan also provides that NEOs who do not technically incur a Qualified Termination but separate from service with MPLX as a result of an MPLX change in control (in other words, where the NEO remains employed with MPC but no longer provides services to MPLX) will become fully vested in all outstanding MPLX LTI awards. NEOs who receive an offer for comparable employment from an acquirer or successor entity in an MPLX change in control will not be eligible to receive benefits under the MPLX CIC Plan. | ||
| The following table shows compensation payable to our NEOs as a direct result of a change in control of MPC and a Qualified Termination, assuming the Qualified Termination occurred on December 31, 2023. | ||
| Name | Severance ($)(1) | Life and Health Insurance Benefits ($) | Additional Legacy Pension Benefits ($)(2) | MPC RSUs/MPLX Phantom Units Vested ($)(3)(4) | MPC PSUs Vested ($)(3)(5) | Total ($) | ||||||||||||||||||||||||||||||||
| Hennigan | 3,547,280 | 17,642 | — | — | — | 3,564,922 | ||||||||||||||||||||||||||||||||
| Mannen | 8,044,500 | 11,984 | — | 8,778,274 | 7,940,375 | 24,775,133 | ||||||||||||||||||||||||||||||||
| Aydt | 6,010,800 | 10,634 | 15,084,343 | — | — | 21,105,777 | ||||||||||||||||||||||||||||||||
| Gagle | 5,148,300 | 11,975 | 10,932,009 | — | — | 16,092,284 | ||||||||||||||||||||||||||||||||
| Floerke | 3,888,600 | 8,673 | — | — | — | 3,897,273 | ||||||||||||||||||||||||||||||||
(1) If a Qualified Termination occurs within three years prior to the date the NEO reaches age 65, the NEO’s severance benefit will be limited to a pro rata portion of the benefit. Mr. Hennigan’s benefit shown in this table has been reduced as he is within three years of reaching age 65. | ||
(2) Pension benefits for our NEOs are reflected in the “2023 Pension Benefits” table on page 58. Amounts in this table represent additional pension benefits attributable solely to the legacy benefit formula in the Retirement Plan, further described beginning on page 58. The incremental retirement benefits included in these amounts were calculated using the following assumptions: individual life expectancies using the RP2000 Combined Healthy Table weighted 75% male and 25% female; a discount rate of 0.25% for NEOs who are retirement eligible (taking into account the additional three years of age and service credit) and 0.00% for NEOs who are not retirement eligible; the current lump-sum interest rate for the relevant plans; and a lump-sum form of benefit. Only Mr. Aydt and Ms. Gagle are eligible for this enhanced benefit under the legacy benefit formula as it is applicable only to individuals who participated in the Retirement Plan prior to 2010. Mr. Aydt’s enhanced benefit reflects the in-service distribution in 2023 of his legacy benefit under the Retirement Plan. | ||
(3) LTI amounts in this table reflect the value of equity that would vest on an accelerated basis as a direct result of a Qualified Termination. Because of their eligibility for an Approved Separation, as discussed above, each NEO (other than Ms. Mannen) holds LTI awards that have become nonforfeitable by their terms. Awards no longer subject to forfeiture are not included in this table. See the tables and accompanying narrative under “Outstanding Equity Awards at 2023 Fiscal Year-End” for more information about these nonforfeitable awards and their respective vesting dates. | ||
(4) Amounts shown are calculated based on the closing prices of our common stock ($148.36) and MPLX common units ($36.72) on December 29, 2023, the last trading day of the year. | ||
(5) MPC PSUs would be paid out based on actual performance for the period from the grant date to the change in control date, and target performance for the period from the change in control date to the end of the performance cycle. Amounts shown are calculated using the MPC PSUs’ target value ($148.36, the closing price of our common stock on December 29, 2023, the last trading day of the year). | ||
| 2024 Proxy Statement | 65 | |||||||
| EXECUTIVE COMPENSATION | ||
| CEO Pay Ratio | ||
| SEC rules require us to disclose the ratio of the annual total compensation of our CEO, Mr. Hennigan, to the median of the annual total compensation of all our employees (other than Mr. Hennigan). | ||
| We identified our median employee as of October 31, 2021, by analyzing the accumulated actual wages and bonus amounts paid to each employee, other than our CEO, between January 1, 2021, and October 1, 2021. We selected this process to determine our median | ||
| Given that there has been no material change to our employee population or employee compensation programs that we reasonably believe would result in a significant change to our pay ratio disclosure, we have continued to identify the same employee reported for 2021 and 2022 as our median employee for | ||
| Pay Ratio Calculation | ||||||||||||||
| Mr. Hennigan’s annual total compensation | $ | |||||||||||||
| Median employee’s annual total compensation | $ | |||||||||||||
| Ratio of CEO to median employee annual total compensation | ||||||||||||||
| 66 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||
| Pay Versus Performance | ||
| SEC rules require us to disclose the following information concerning executive compensation and certain financial performance information about the Company for the periods shown. Based on 2023 SEC guidance, some amounts shown in the following tables have been calculated differently than for the corresponding disclosure in our 2023 Proxy Statement. | ||
| PAY VERSUS PERFORMANCE TABLE | PAY VERSUS PERFORMANCE TABLE | PAY VERSUS PERFORMANCE TABLE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value of Initial Fixed td00 Investment Based On: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year | Year | Summary Compensation Table Total for PEO ($) | Compensation Actually Paid to PEO ($) | Average Summary Compensation Table Total for Non-PEO NEOs ($) | Average Compensation Actually Paid to Non-PEO NEOs ($) | Net Income ($ millions) | MPC Relative TSR Performance Percentile | Year | Summary Compensation Table Total for PEO ($) | Compensation Actually Paid to PEO ($) | Average Summary Compensation Table Total for Non-PEO NEOs ($) | Average Compensation Actually Paid to Non-PEO NEOs ($) | Value of Initial Fixed td00 Investment Based On: | Net Income ($ millions) | MPC Relative TSR Performance Percentile | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Shareholder Return ($) | Peer Group Total Shareholder Return ($) | Total Shareholder Return ($) | Peer Group Total Shareholder Return ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2022 | 21,288,532 | 57,863,217 | 4,759,899 | 11,688,458 | 218.21 | 153.61 | 16,050 | 83.33rd | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2021 | 21,185,206 | 31,076,741 | 5,601,203 | 5,934,676 | 116.95 | 90.02 | 11,001 | 91.67th | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2020 | 15,534,265 | 21,219,014 | 5,628,257 | 5,101,562 | 72.64 | 66.82 | (9,977) | 90.00th | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10,005,700 | 10,070,251 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10,005,700 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10,005,700 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10,005,700 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Compensation Table Total for Principal Executive Officer (“PEO”) and Compensation Actually Paid to PEO include the following PEOs for each year shown: | ||
•2023, 2022 and 2021: Michael J. •2020: | ||
Average Summary Compensation Table Total for Non-PEO NEOs and Average Compensation Actually Paid to Non-PEO NEOs include the following NEOs for each year shown: | ||
• •2022: Ms. Mannen, Ms. Gagle, Mr. Aydt, Mr. Floerke and Raymond L. •2021: •2020: | ||
Value of Initial Fixed $100 Investment assumes that the value of the investment in our common stock and in the peer group (including reinvestment of dividends) was $100 at market close on December 31, 2019 (the last trading day of 2019), and tracks such investment through market close on the last trading day of each applicable year. | ||
Total Shareholder Return (“MPC TSR”) is calculated for purposes of this column in accordance with Exchange Act Regulation S-K Item 402(v)(2)(iv), which is different than the PSU TSR calculation used for the MPC Relative TSR Performance Percentile shown in the final column of this table. | ||
Peer Group Total Shareholder Return is shown for the S&P 500 Oil & Gas Refining & Marketing Sub-Industry Index, the same peer group used for the Stock Return Performance Graph included in our 2023 Annual Report. | ||
MPC Relative TSR Performance Percentile is based on the metric used for the MPC PSUs, discussed in more detail beginning on page 46. Amounts shown in this table for each year reflect MPC’s one-year PSU TSR relative to the one-year PSU TSR of the peer group used for the MPC PSUs awarded for that year. For example, the amount shown for 2023 reflects MPC’s one-year PSU TSR performance relative to the PSU TSR performance of the peer group used for the 2023 PSUs as shown on page 46. | ||
As shown on page 42 under “2023 Target Compensation Mix,” a significant portion of our NEOs’ total target compensation (for 2023, approximately 44% for the CEO and 37% (average) for the other NEOs) is awarded in the form of MPC PSUs; thus, the Compensation and Organization Development Committee believes the MPC Relative TSR Performance Percentile is the most important financial measure used to link NEO compensation for 2023 to MPC’s performance. | ||
| 2024 Proxy Statement | 67 | |||||||
| EXECUTIVE COMPENSATION | ||
Compensation Actually Paid (“CAP”) for | ||
•Salary earned | ||
•The total ACB award earned for | ||
•MPC’s aggregate contributions in | ||
•The actuarial present value of each officer’s benefit under our defined benefit | ||
•For LTI awards made in | ||
•For LTI awards made prior to | ||
•For LTI awards made in | ||
•For LTI awards made prior to | ||
•LTI awards made prior to | ||
• | ||
CAP for the other years shown is calculated using substantially the same methodology as for | ||
| In accordance with | ||
| PEO SCT TOTAL TO CAP TOTAL RECONCILIATION | PEO SCT TOTAL TO CAP TOTAL RECONCILIATION | PEO SCT TOTAL TO CAP TOTAL RECONCILIATION | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Additions to SCT Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deductions from SCT Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year | Year | SCT Total ($) | Deductions from SCT Total ($) | Pension Service Cost ($) | Change in Value of Equity Awards as Summarized Below ($) | CAP Total ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year | SCT Total ($) | Grant Date Fair Value of Equity-Based Awards ($) | Change in Pension Value ($) | Pension Service Cost ($) | Change in Value of Equity Awards as Summarized Below ($) | CAP Total ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2022 | 21,288,532 | 14,521,516 | 374,531 | 50,721,670 | 57,863,217 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2021 | 21,185,206 | 14,636,291 | 292,772 | 24,235,054 | 31,076,741 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2020 | * | 15,534,265 | 10,532,443 | 234,235 | 15,982,957 | 21,219,014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10,005,700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10,005,700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10,005,700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10,005,700 | 6,000,009 | — | 6,064,560 | 10,070,251 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * | * Includes Mr. Hennigan (top row) and Mr. Heminger (bottom row). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * | Includes Mr. Hennigan (top row) and Mr. Heminger (bottom row). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NON-PEO NEO (AVERAGE) SCT TOTAL TO CAP TOTAL RECONCILIATION | |||||||||||||||||||||||||||||||||||
| Additions to SCT Total | |||||||||||||||||||||||||||||||||||
| Year | SCT Total ($) | Deductions from SCT Total ($) | Pension Service Cost ($) | Change in Value of Equity Awards as Summarized Below ($) | CAP Total ($) | ||||||||||||||||||||||||||||||
| 2022 | 4,759,899 | 2,890,901 | 94,246 | 9,725,214 | 11,688,458 | ||||||||||||||||||||||||||||||
| 2021 | 5,601,203 | 4,130,399 | 99,299 | 4,364,573 | 5,934,676 | ||||||||||||||||||||||||||||||
| 2020 | 5,628,257 | 3,309,326 | 164,855 | 2,617,776 | 5,101,562 | ||||||||||||||||||||||||||||||
| 68 | Marathon Petroleum Corporation | |||||||
| EXECUTIVE COMPENSATION | ||
| NON-PEO NEO (AVERAGE) SCT TOTAL TO CAP TOTAL RECONCILIATION | |||||||||||||||||||||||||||||||||||||||||
| Deductions from SCT Total | Additions to SCT Total | ||||||||||||||||||||||||||||||||||||||||
| Year | SCT Total ($) | Grant Date Fair Value of Equity-Based Awards ($) | Change in Pension Value ($) | Pension Service Cost ($) | Change in Value of Equity Awards as Summarized Below ($) | CAP Total ($) | |||||||||||||||||||||||||||||||||||
| 2023 | 5,557,272 | 3,203,916 | 192,840 | 104,741 | 8,368,736 | 10,633,993 | |||||||||||||||||||||||||||||||||||
| 2022 | 4,759,899 | 2,807,979 | 82,922 | 94,246 | 9,106,786 | 11,070,030 | |||||||||||||||||||||||||||||||||||
| 2021 | 5,601,203 | 4,029,882 | 100,517 | 99,299 | 4,860,130 | 6,430,233 | |||||||||||||||||||||||||||||||||||
| 2020 | 5,628,257 | 2,815,663 | 493,663 | 164,855 | 2,617,776 | 5,101,562 | |||||||||||||||||||||||||||||||||||
| Deductions from SCT Total include | ||
| Additions to SCT Total reflect the value of equity calculated in accordance with SEC methodology for determining CAP for each year shown. | ||
| PEO CHANGE IN VALUE OF EQUITY AWARDS | |||||||||||||||||||||||||||||||||||||||||||||||
| Year | Year-End Fair Value of Unvested Equity Awards Granted in the Year ($) | Year-End Over Year-End Change in Fair Value of Unvested Equity Awards Granted in Prior Years ($) | Vesting Date Fair Value of Vested Equity Awards Granted in the Year ($) | Year-End Over Vesting Date Change in Fair Value of Vested Equity Awards Granted in Prior Years ($) | Fair Value at Prior Year-End of Equity Awards Cancelled in the Year ($) | Value of Dividends or Other Earnings on Equity Awards in the Year ($) | Total Change in Value of Equity Awards as Included Above ($) | ||||||||||||||||||||||||||||||||||||||||
| 2023 | 20,177,224 | 9,572,404 | 245,216 | 11,406,939 | — | 727,621 | 42,129,404 | ||||||||||||||||||||||||||||||||||||||||
| 2022 | 21,916,691 | 20,268,338 | 252,069 | 3,595,977 | — | 851,935 | 46,885,010 | ||||||||||||||||||||||||||||||||||||||||
| 2021 | 18,000,443 | 6,807,296 | — | 2,324,862 | — | 939,019 | 28,071,620 | ||||||||||||||||||||||||||||||||||||||||
| 2020 | * | 16,575,437 | 148,370 | — | (1,527,886) | — | 787,036 | 15,982,957 | |||||||||||||||||||||||||||||||||||||||
| 8,378,171 | 1,104,880 | 263,581 | (4,176,225) | — | 494,153 | 6,064,560 | |||||||||||||||||||||||||||||||||||||||||
| * | Includes Mr. Hennigan (top row) and Mr. Heminger (bottom row). | ||||
| NON-PEO NEO (AVERAGE) CHANGE IN VALUE OF EQUITY AWARDS | |||||||||||||||||||||||||||||||||||||||||||||||
| Year | Year-End Fair Value of Unvested Equity Awards Granted in the Year ($) | Year-End Over Year-End Change in Fair Value of Unvested Equity Awards Granted in Prior Years ($) | Vesting Date Fair Value of Vested Equity Awards Granted in the Year ($) | Year-End Over Vesting Date Change in Fair Value of Vested Equity Awards Granted in Prior Years ($) | Fair Value at Prior Year-End of Equity Awards Cancelled in the Year ($) | Value of Dividends or Other Earnings on Equity Awards in the Year ($) | Total Change in Value of Equity Awards as Included Above ($) | ||||||||||||||||||||||||||||||||||||||||
| 2023 | 4,010,183 | 2,012,595 | 28,408 | 2,140,847 | — | 176,703 | 8,368,736 | ||||||||||||||||||||||||||||||||||||||||
| 2022 | 4,132,208 | 3,872,509 | 284,789 | 764,776 | (109,242) | 161,746 | 9,106,786 | ||||||||||||||||||||||||||||||||||||||||
| 2021 | 3,871,397 | 561,095 | 17,579 | 648,226 | (359,524) | 121,357 | 4,860,130 | ||||||||||||||||||||||||||||||||||||||||
| 2020 | 3,026,197 | 122,027 | — | (628,062) | — | 97,614 | 2,617,776 | ||||||||||||||||||||||||||||||||||||||||
| PEO CHANGE IN VALUE OF EQUITY AWARDS | |||||||||||||||||||||||||||||||||||||||||||||||
| Year | Year-end Fair Value of Unvested Equity Awards Granted in the Year ($) | Year-over-year Change in Fair Value of Unvested Equity Awards Granted in Prior Years ($) | Vesting Date Fair Value of Vested Equity Awards Granted in the Year ($) | Year-over-year Change in Fair Value as of Vesting Date of Vested Equity Awards Granted in Prior Years ($) | Fair Value at Prior Year-end of Equity Awards Cancelled in the Year ($) | Value of Dividends or Other Earnings Paid on Equity Awards in the Year ($) | Change in Value of Equity Awards as Included Above ($) | ||||||||||||||||||||||||||||||||||||||||
| 2022 | 21,916,691 | 25,256,477 | 252,069 | 2,444,498 | — | 851,935 | 50,721,670 | ||||||||||||||||||||||||||||||||||||||||
| 2021 | 13,580,543 | 7,741,163 | — | 1,974,329 | — | 939,019 | 24,235,054 | ||||||||||||||||||||||||||||||||||||||||
| 2020 | * | 16,757,437 | 559,125 | — | (1,938,641) | — | 787,036 | 16,164,957 | |||||||||||||||||||||||||||||||||||||||
| 8,378,171 | 2,350,570 | 263,581 | (5,421,915) | — | 494,153 | 6,064,560 | |||||||||||||||||||||||||||||||||||||||||
| * Includes Mr. Hennigan (top row) and Mr. Heminger (bottom row). | |||||||||||||||||||||||||||||||||||||||||||||||
| NON-PEO NEO (AVERAGE) CHANGE IN VALUE OF EQUITY AWARDS | |||||||||||||||||||||||||||||||||||||||||||||||
| Year | Year-end Fair Value of Unvested Equity Awards Granted in the Year ($) | Year-over-year Change in Fair Value of Unvested Equity Awards Granted in Prior Years ($) | Vesting Date Fair Value of Vested Equity Awards Granted in the Year ($) | Year-over-year Change in Fair Value as of Vesting Date of Vested Equity Awards Granted in Prior Years ($) | Fair Value at Prior Year-end of Equity Awards Cancelled in the Year ($) | Value of Dividends or Other Earnings Paid on Equity Awards in the Year ($) | Change in Value of Equity Awards as Included Above ($) | ||||||||||||||||||||||||||||||||||||||||
| 2022 | 4,436,298 | 4,925,271 | 33,421 | 168,478 | — | 161,746 | 9,725,214 | ||||||||||||||||||||||||||||||||||||||||
| 2021 | 3,124,913 | 696,457 | 17,579 | 404,267 | — | 121,357 | 4,364,573 | ||||||||||||||||||||||||||||||||||||||||
| 2020 | 3,026,197 | 378,892 | — | (884,927) | — | 97,614 | 2,617,776 | ||||||||||||||||||||||||||||||||||||||||
| 69 | ||||||||
| EXECUTIVE COMPENSATION | ||
| MPC TSR vs. PEER GROUP TSR | CAP vs. MPC TSR | ||||||||||
  |   | ||||||||||
| CAP vs. MPC NET INCOME | CAP vs. MPC RELATIVE TSR PERFORMANCE PERCENTILE | ||||||||||
  |   | ||||||||||
| FINANCIAL PERFORMANCE MEASURES USED TO LINK | ||
| MPC Relative TSR Performance Percentile | ||
| Distributable Cash Flow at MPLX per Unit | ||
| Refining and Corporate Costs | ||
See the description of our ACB program beginning on page | ||
| 70 | Marathon Petroleum Corporation | |||||||
| MANAGEMENT PROPOSALS | ||
| Proposal | ||
| ü | The Board of Directors recommends you vote FOR this proposal to amend our Restated Certificate of Incorporation to provide for officer exculpation, as permitted under Delaware law. | |||||||
| The DGCL permits Delaware corporations to limit the personal liability of directors for monetary damages associated with breaches of the duty of care in limited circumstances, and our Restated Certificate of Incorporation currently includes those limitations. Effective August 1, 2022, the DGCL was amended to permit Delaware corporations to amend their certificates of incorporation, subject to shareholder approval, to limit the personal liability of certain officers for monetary damages associated with breaches of the fiduciary duty of care (but not the fiduciary duty of loyalty) in limited circumstances. | ||
| The proposed amendment to our Restated Certificate of Incorporation (the “Officer Exculpation Amendment”) would implement the new DGCL provisions permitting exculpation of officers similar to the exculpation provisions that already exist for directors. The Officer Exculpation Amendment would only permit exculpation of officers for direct claims for breaches of the duty of care, as opposed to derivative claims made by shareholders on behalf of the Company, and, like the director exculpation provision, would not exculpate officers from liability for breach of the duty of loyalty, acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law, or any transaction in which the officer derived an improper personal benefit. Similar to what is provided for director exculpation, the Officer Exculpation Amendment provides that if the DGCL is further amended to eliminate or limit the personal liability of officers, the liability of officers will be limited to the fullest extent permitted by law, as so amended. | ||
| The Board believes the Officer Exculpation Amendment is advisable and in the best interests of the Company and its shareholders because it strikes a balance between shareholders’ interest in officer accountability and shareholders’ interest in our ability to attract and retain quality officers and to reduce litigation and insurance costs associated with lawsuits. In the absence of such exculpation protection, individuals might be deterred from serving as officers due to exposure to personal liability and the risk of incurring substantial expense in defending lawsuits, regardless of merit. Aligning the protections available to our officers with those available to our directors to the extent such protections are available under the DGCL would empower officers to exercise their business judgment in furtherance of shareholder interests without the potential for distraction posed by the risk of personal liability. | ||
| In determining that the Officer Exculpation Amendment is in the best interests of the Company and its shareholders, the Board took into account the narrow class and type of claims for which officers would be exculpated and the benefits the Board believes would accrue to the Company and its shareholders, including enhancing our ability to attract and retain talented officers and potentially reducing future litigation costs associated with frivolous lawsuits. The Board recommends that shareholders vote to approve the Officer Exculpation Amendment. | ||
| The description in this proposal of the Officer Exculpation Amendment is a summary of the proposed amendment to our Restated Certificate of Incorporation and is qualified in its entirety by reference to, and should be read in conjunction with, the full text of the proposed Officer Exculpation Amendment, a copy of which is attached to this Proxy Statement as Appendix II. | ||
| The affirmative vote of the holders of at least a majority of the outstanding shares of our common stock entitled to vote is required to approve this proposal. Because brokers may not cast a vote on this proposal without instruction, it is very important that shareholders vote their shares. | ||
| If our shareholders approve the proposed Officer Exculpation Amendment, we intend to file with the Secretary of State of the State of Delaware a Certificate of Amendment setting forth the Officer Exculpation Amendment, which will become effective upon filing and effectiveness. | ||
| If our shareholders approve the proposed Officer Exculpation Amendment, the Declassification Amendment described in Proposal 6 and the Supermajority Elimination Amendment described in Proposal 7, we intend to file with the Secretary of State of the State of Delaware a Certificate of Amendment setting forth the Officer Exculpation | ||
| 2024 Proxy Statement | 71 | |||||||
| MANAGEMENT PROPOSALS | ||
| Amendment, the Declassification Amendment and the Supermajority Elimination Amendment, as set forth in Appendix V to this Proxy Statement, which will become effective upon filing and effectiveness. | ||
| Proposal 6. Approve an Amendment to the Certificate of Incorporation to Declassify the Board of Directors | ||
| ü | The Board of Directors recommends you vote FOR this proposal to amend our Restated Certificate of Incorporation to phase out the classified Board so that the Board is fully declassified by the | |||||||||||||
| Our Restated Certificate of Incorporation provides for three classes of directors, with each class elected for a three-year term. The Board believes it is advisable and in the best interests of the Company and its shareholders to amend our Restated Certificate of Incorporation to phase out the classified Board so that the Board is fully declassified by the | ||
| The proposed Declassification Amendment will amend Article Six of our Restated Certificate of Incorporation to provide that our classified Board structure will be phased out beginning at the | ||
Pursuant to the Declassification Amendment, the phaseout of the classified Board commences with the | ||
| The Declassification Amendment also provides that directors elected to fill any vacancy on the Board, or to fill newly created director positions resulting from an increase in the number of directors, before the | ||
| Under Delaware law, directors of companies that have a classified board may be removed only for cause, unless the certificate of incorporation provides otherwise, while directors of companies that do not have a classified board may be removed with or without cause. Article Six of our Restated Certificate of Incorporation provides that a director may be removed from office only with cause and upon the approval of holders of 80% of the voting power of the then outstanding shares of stock entitled to vote in the election of directors. The proposed Declassification Amendment will amend such provision to provide that, beginning with the | ||
| The affirmative vote of the holders of at least 80% of the outstanding shares of our common stock entitled to vote is required to approve this proposal. Because brokers may not cast a vote on this proposal without instruction, it is very important that shareholders vote their shares. | ||
| MANAGEMENT PROPOSALS | ||
| The Board recommended a similar proposal at our 2021, 2022 and | ||
| If our shareholders approve the proposed Declassification Amendment, we intend to file with the Secretary of State of the State of Delaware a Certificate of Amendment setting forth the Declassification Amendment, which will become effective upon filing and effectiveness. The Declassification Amendment does not change the present number of directors or the Board’s authority to change that number and to fill any vacancies or newly created directorships. The Board also intends to approve conforming amendments to our Bylaws, contingent upon shareholder approval of the Declassification Amendment. | ||
If our shareholders approve the proposed Declassification Amendment, the Officer Exculpation Amendment described in Proposal 5 and the Supermajority Elimination Amendment described in Proposal | ||
| Proposal | ||
| ü | The Board of Directors recommends you vote FOR this proposal to eliminate the supermajority provisions in our Restated Certificate of Incorporation. | ||||||||||||||||
| Our Restated Certificate of Incorporation contains “supermajority voting provisions” requiring the affirmative vote of the holders of at least 80% of the outstanding shares of our common stock entitled to vote to amend certain sections of the Restated Certificate of Incorporation, including the sections relating to amendments to the Restated Certificate of Incorporation. The proposed amendment to our Restated Certificate of Incorporation (the “Supermajority Elimination Amendment”) would remove this 80% requirement, and the vote required for future amendments would be the standard required by applicable law. | ||
| The Board has carefully considered the advantages and disadvantages of maintaining the supermajority voting provisions in our Restated Certificate of Incorporation and determined that it is in the best interests of the Company and its shareholders to | ||
| The description in this proposal of the Supermajority Elimination Amendment is a summary of the proposed amendment to | ||
| The affirmative vote of the holders of at least 80% of the outstanding shares of our common stock entitled to vote is required to approve this proposal. Because brokers may not cast a vote on this proposal without instruction, it is very important that shareholders vote their shares. | ||
| The Board recommended a similar proposal at our 2021, 2022 and | ||
| If our shareholders approve the proposed Supermajority Elimination Amendment, we intend to file with the Secretary of State of the State of Delaware a Certificate of Amendment setting forth the Supermajority Elimination Amendment, which will become effective upon filing and effectiveness. | ||
| If our shareholders approve the proposed Supermajority Elimination Amendment, the | ||
| 73 | ||||||||
| SHAREHOLDER | ||
| We have been notified that | ||
| The affirmative vote of the holders of a majority of shares represented in person or by proxy and entitled to vote on the | ||
| Proposal | ||
| û | The Board of Directors recommends you vote AGAINST the following proposal. | |||||||
| John Chevedden has notified MPC that he intends to present the following proposal at the Annual Meeting. | ||
| Shareholder Proposal and Supporting Statement | ||
| Proposal | ||
 | ||
| Shareholders request that our board take each step necessary so that each voting requirement in our charter and bylaws (that is explicit or implicit due to default to state law) that calls for a greater than simple majority vote be replaced by a requirement for a majority of the votes cast for and against | ||
| If necessary this means the closest standard to a majority of the votes cast for and against such proposals consistent with applicable laws. This includes | ||
| Shareholders are willing to pay a premium for shares of companies that | ||
| This proposal topic | ||
| This simple majority vote proposal will facilitate the adoption of other improvements in the corporate governance of Marathon Petroleum | ||
| This simple majority vote proposal will help improve Marathon Petroleum shareholder rights. Marathon Petroleum recently scored a dismal 9 in shareholder rights with 10 being the worst possible score. If improved shareholder rights increase the market capitalization of Marathon Petroleum by one-forth of 1% it would result in a $142 million increase in the market capitalization of Marathon Petroleum. | ||
| 74 | Marathon Petroleum Corporation | |||||||
| SHAREHOLDER | ||
| Thus if Marathon Petroleum spends a 6-figure sum to encourage more shareholders to vote in order to obtain the required 80%-approval of all shares outstanding, it would result in an astounding 1,400% return ($142 million) on the investment of the 6-figure sum. | ||
| Please vote yes: | ||
| Simple Majority Vote – Proposal | ||
| Board of Directors’ Response to Proposal | 8 | |||||||
The Board has carefully considered this proposal and recommends you vote AGAINST it. | ||||||||
The Board agrees with the proponent that eliminating the supermajority provisions in our Restated Certificate of Incorporation would be in shareholders’ best interests. That is why we asked shareholders in 2021, 2022 and | ||||||||
| required vote. | ||||||||
| In preparation for the 2023 proxy season, we engaged a new proxy solicitor to assess our shareholder base and help us strategize on various paths to obtain the 80% threshold needed to approve the Board’s supermajority elimination proposal. We took all actions recommended by our proxy solicitor. The proponent asserts that MPC should spend “a 6-figure sum” to encourage more of our shareholders to vote. In fact, MPC spent more than $100,000 in 2023 for additional proxy solicitation, physical mailings with enhanced packaging and color inserts, and email reminders targeting shareholders who had not yet voted to encourage them to vote specifically in favor of the Board’s supermajority elimination proposal. This expense was in addition to the over $1 million MPC annually incurs for printing and mailing proxy materials, voting solicitation and tabulation, virtual meeting hosting and other related expenses in connection with the annual meeting of shareholders. | ||||||||
Given that | ||||||||
| 75 | ||||||||
| OTHER INFORMATION | ||
| Stock Ownership Information | ||
| Security Ownership of Management | ||
| The following table shows the number of shares of MPC common stock and MPLX common units beneficially owned as of February 1, | ||
| Name of Beneficial Owner | Name of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Total Outstanding (%) | Name of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Total Outstanding (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MPC Common Stock | MPLX Common Units | MPC | MPLX | MPC Common Stock | MPLX Common Units | MPC | MPLX | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Non-Executive Directors | Current Non-Executive Directors | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Non-Executive Directors | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Non-Executive Directors | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Abdulaziz F. Alkhayyal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Abdulaziz F. Alkhayyal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Abdulaziz F. Alkhayyal | Abdulaziz F. Alkhayyal | 20,146 | 5,402 | * | * | 21,772 | 6,430 | 6,430 | * | * | * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Evan Bayh | Evan Bayh | 63,820 | 38,997 | * | * | Evan Bayh | 66,205 | 40,270 | 40,270 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Charles E. Bunch | Charles E. Bunch | 31,215 | 17,724 | * | * | Charles E. Bunch | 32,945 | 18,836 | 18,836 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jonathan Z. Cohen | Jonathan Z. Cohen | 11,091 | 3,015 | * | * | Jonathan Z. Cohen | 12,506 | 3,817 | 3,817 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Eileen P. Drake | Eileen P. Drake | — | — | * | * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kimberly Ellison-Taylor | Kimberly Ellison-Taylor | — | — | * | * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Edward G. Galante | Edward G. Galante | 20,971 | 8,166 | * | * | Edward G. Galante | 22,467 | 9,059 | 9,059 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kim K.W. Rucker | Kim K.W. Rucker | 40,950 | 20,196 | * | * | Kim K.W. Rucker | 24,446 | 21,089 | 21,089 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frank M. Semple | Frank M. Semple | 9,679 | 528,893 | * | * | Frank M. Semple | 11,061 | 536,237 | 536,237 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| J. Michael Stice | J. Michael Stice | 19,000 | 32,562 | * | * | J. Michael Stice | 20,599 | 39,552 | 39,552 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| John P. Surma | John P. Surma | 62,720 | 61,119 | * | * | John P. Surma | 65,105 | 70,169 | 70,169 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Susan Tomasky | Susan Tomasky | 25,228 | 3,984 | * | * | Susan Tomasky | 26,724 | 4,877 | 4,877 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Toni Townes-Whitley | — | — | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Named Executive Officers | Named Executive Officers | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Michael J. Hennigan | Michael J. Hennigan | 245,156 | 267,233 | * | * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Michael J. Hennigan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Michael J. Hennigan | 215,161 | 316,107 | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Maryann T. Mannen | Maryann T. Mannen | 85,643 | 53,858 | * | * | Maryann T. Mannen | 79,089 | 72,196 | 72,196 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Timothy J. Aydt | Timothy J. Aydt | 20,603 | 45,293 | * | * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Suzanne Gagle | Suzanne Gagle | 165,254 | 60,011 | * | * | Suzanne Gagle | 45,837 | 67,205 | 67,205 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Timothy J. Aydt | 23,719 | 34,487 | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gregory S. Floerke | Gregory S. Floerke | 36,594 | 80,690 | * | * | Gregory S. Floerke | 29,177 | 84,906 | 84,906 | * | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Raymond L. Brooks | 44,268 | 70,036 | * | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All Current Directors and Current Executive Officers as a Group (18 individuals) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 899,230 | 1,230,939 | * | * | * Less than 1% of common shares or common units outstanding, as applicable. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All Current Directors and Current Executive Officers as a Group (20 individuals) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 749,742 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 749,742 | 1,339,970 | * | * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * | Less than 1% of common shares or common units outstanding, as applicable. | ||||
MPC Common Stock beneficial ownership amounts include: | |||||
| Restricted stock unit awards that vest upon the director’s retirement from service on the Board as follows: Mr. Alkhayyal, | |||||
| Shares of common stock indirectly beneficially held in trust as follows: Mr. Surma, 10,000. | |||||
All stock options exercisable within 60 days of February 1, | |||||
Mr. Aydt, 7,421; Ms. Gagle, | |||||
| Marathon Petroleum Corporation | ||||||||
| OTHER INFORMATION | ||
MPLX Common Unit beneficial ownership amounts include: | |||||
| Phantom unit awards that settle in common units upon a director’s retirement from service on the Board as follows: Mr. Alkhayyal, | |||||
| Common units indirectly beneficially held in trust as follows: Mr. Semple, | |||||
| Phantom unit awards that may be forfeited under certain conditions as follows: Mr. Hennigan, Ms. Mannen, | |||||
| Security Ownership of Certain Beneficial Owners | ||
| The following table sets forth information as to each shareholder of whom we are aware that, based on filings with the SEC, beneficially owned 5% or more of the outstanding shares of our common stock as of December 31, | ||
| Amount and Nature of Beneficial Ownership | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | ||||||||||||||||||||||||||||||||||||
| Amount and Nature of Beneficial Ownership | Amount and Nature of Beneficial Ownership | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | |||||||||||||||||||||||||||||||||||
| Name and Address of Beneficial Owner | Name and Address of Beneficial Owner | Number of Shares | Percent of Class | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Name and Address of Beneficial Owner | Number of Shares | Percent of Class | ||||||||||||||||||||||||||||||
| The Vanguard Group 100 Vanguard Blvd. Malvern, PA 19355 | The Vanguard Group 100 Vanguard Blvd. Malvern, PA 19355 | 43,891,083 | 9.8% | — | 695,982 | 41,888,893 | 2,002,190 | |||||||||||||||||||||||||||||||||
| BlackRock, Inc. 55 East 52nd Street New York, NY 10055 | 43,461,422 | 9.7% | 40,067,636 | — | 43,461,422 | — | ||||||||||||||||||||||||||||||||||
| State Street Corporation State Street Financial Center One Lincoln Street Boston, MA 02111 | 32,583,077 | 7.3% | — | 30,082,814 | — | 32,557,724 | ||||||||||||||||||||||||||||||||||
| The Vanguard Group 100 Vanguard Blvd. Malvern, PA 19355 | ||||||||||||||||||||||||||||||||||||||||
| The Vanguard Group 100 Vanguard Blvd. Malvern, PA 19355 | 35,742,900 | 9.9% | — | 501,767 | 34,136,966 | 1,605,934 | ||||||||||||||||||||||||||||||||||
BlackRock, Inc. 50 Hudson Yards New York, NY 10001 | BlackRock, Inc. 50 Hudson Yards New York, NY 10001 | 30,922,841 | 8.5% | 28,384,284 | — | 30,922,841 | — | |||||||||||||||||||||||||||||||||
State Street Corporation State Street Financial Center 1 Congress Street, Suite 1 Boston, MA 02114 | State Street Corporation State Street Financial Center 1 Congress Street, Suite 1 Boston, MA 02114 | 25,127,390 | 6.9% | — | 18,246,186 | — | 25,099,168 | |||||||||||||||||||||||||||||||||
Percent of Class is based on | ||
The Vanguard Group. Amounts are derived from Schedule 13G/A filed with the SEC on February | ||
BlackRock, Inc. Amounts are derived from Schedule | ||
State Street Corporation. Amounts are derived from Schedule 13G/A filed with the SEC on | ||
| OTHER INFORMATION | ||
| Related Party Transactions | ||
| Policy and Procedures with Respect to Related Person Transactions | ||
| The Board has adopted a Related Person Transactions Policy to establish procedures for the notification, review, approval, ratification and disclosure of related person transactions. Our intent is to enter into or ratify a related person transaction only when the Board, acting through the Corporate Governance and Nominating Committee, determines that the transaction is in the best interests of our shareholders and us. | ||
| The Related Person Transactions Policy is available under the “Investors” tab of our website by selecting “Corporate Governance.” The material features of the policy are: | ||
| ü | Annually, and at other times as circumstances require, directors, director nominees and executive officers must submit updated information sufficient for the Corporate Governance and Nominating Committee to identify the existence of and evaluate possible related person transactions not previously approved or ratified. Known transactions with beneficial owners of 5% or more of our common stock are also assessed. | ||||
| ü | If the Chief Legal Officer and Corporate Secretary determines that a proposed transaction is a related person transaction, it will be submitted to the Corporate Governance and Nominating Committee. The Committee, considering all relevant facts and circumstances, will approve only those proposed transactions that it determines are in the best interests of our shareholders and us. | ||||
| ü | Any related person transaction that has not been previously approved or ratified must be submitted to the Corporate Governance and Nominating Committee, which considers whether ratification, amendment or termination of the transaction is in the best interests of our shareholders and us. | ||||
| ü | We may not hire any immediate family member of a director or executive officer unless approved by the Corporate Governance and Nominating Committee. If an employee’s immediate family member becomes our director or executive officer, no material change in that employee’s terms of employment, including compensation, may be made without the Committee’s prior approval. | ||||
| Directors, Officers and Immediate Family Members | ||
We entered into an aircraft time sharing agreement with Mr. Hennigan, effective January 1, 2021, pursuant to which Mr. Hennigan may elect to use Company aircraft for personal use from time to time on a time sharing basis. Mr. Hennigan will pay us for such use of the aircraft pursuant to the terms of the agreement. The transaction was approved by the Corporate Governance and Nominating Committee and will be reviewed on an annual basis consistent with our Related Person Transactions Policy described above. A copy of the aircraft time sharing agreement was filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2020. | ||
| Two sons of Mr. Aydt, our Executive Vice President Refining, are employed by subsidiaries of the Company in non-executive roles. Nate Aydt, | ||
| Relationship with MPLX | ||
| As of December 31, | ||
| 78 | Marathon Petroleum Corporation | |||||||
| OTHER INFORMATION | ||
Distributions Pursuant to its partnership agreement, MPLX makes cash distributions to its unitholders, including us as the indirect holder of MPLX common units. During | ||
Reimbursements Under its partnership agreement, MPLX reimburses MPLX GP and its affiliates, including us, for all costs and expenses incurred on MPLX’s behalf. The amount reimbursed by MPLX in | ||
Transactions and Commercial and Other Agreements with MPLX During | ||
| Long-Term, Fee-Based Commercial Agreements | |||||||||||||||||
| MPLX provides transportation, gathering, terminal, storage, distribution and marketing services to us, and we provide MPLX with minimum quarterly throughput volumes on crude oil and refined products systems, and minimum storage volumes of crude oil and refined products. We also pay a fixed fee for 100% of available capacity for boats, barges and third-party chartered equipment under the marine transportation service agreement. | |||||||||||||||||
| MPLX operates various pipelines owned by us, and we pay MPLX | |||||||||||||||||
| We pay an MPLX subsidiary a fixed annual fee for providing oversight and management services for our marine business. This fee is adjusted annually for inflation and any changes in the scope of the management services provided. | |||||||||||||||||
| MPLX pays us a fixed annual fee for executive management services and general and administrative services, as well as any associated out-of-pocket costs and expenses. We have agreed to indemnify MPLX for certain matters, including environmental, title and tax matters. | |||||||||||||||||
| MPLX reimburses us for employee benefit expenses and costs incurred for certain operational and management services. | |||||||||||||||||
| Certain of MPLX’s facilities are located on properties owned by our refineries. MPLX pays us monthly fixed fees under these ground leases, which are subject to various terms. | |||||||||||||||||
| We pay MPLX a processing fee for natural gas liquids related to keep-whole agreements and deliver shrink gas to the producers on MPLX’s behalf. MPLX pays us a marketing fee in exchange for assuming the commodity risk. | |||||||||||||||||
Loan Agreement One of our wholly owned subsidiaries is party to a loan agreement with MPLX. Under the terms of the agreement, we extend loans to MPLX on a revolving basis, as requested by MPLX and as agreed to by us, up to a maximum borrowing capacity of $1.5 billion in aggregate principal amount of loans at any time outstanding. The loan agreement is scheduled to expire, and borrowings under the loan agreement are scheduled to mature and become due and payable, on July 31, 2024, provided that we may demand payment of all or any portion of the principal amount of any loans outstanding, together with all accrued and unpaid interest and other amounts (if any) payable under the agreement, at any time prior to the maturity date. | ||
| FAQs About Voting and the Annual Meeting | ||
| Q. | When and where is the Annual Meeting? | ||||
| A. | The | ||||
| Q. | What am I voting on and how does the Board recommend that I vote? | ||||
| A. | The following table summarizes each proposal, the Board’s voting recommendation for each proposal and the vote required for each proposal to pass. | ||||
| Proposal | Board Recommendation | Page Reference | Voting Standard | |||||||||||||||||
Proposal 1. Elect four director nominees to Class | FOR each nominee | Majority of votes cast for each director | ||||||||||||||||||
Proposal 2. Ratify the appointment of our independent auditor for | FOR | Majority of votes cast | ||||||||||||||||||
Proposal 3. Approve, on an advisory basis, our named executive officer compensation | FOR | Majority of votes cast | ||||||||||||||||||
Proposal 4. | 1 YEAR | Option receiving greatest number of votes cast | ||||||||||||||||||
Proposal 5. Approve an amendment to the Certificate of Incorporation to provide for officer exculpation | FOR | Majority of outstanding shares entitled to vote | ||||||||||||||||||
Proposal 6. Approve an amendment to the Certificate of Incorporation to declassify the Board of Directors | FOR | 80% of outstanding shares entitled to vote | ||||||||||||||||||
Proposal | FOR | 80% of outstanding shares entitled to vote | ||||||||||||||||||
Proposal | ||||||||||||||||||||
| Majority of shares present | ||||||||||||||||||||
| Q. | Who is entitled to vote? | ||||
| A. | You may vote if you held MPC common stock at the close of business on | ||||
| Q. | How do I attend the virtual Annual Meeting? | ||||
| A. | If you plan to attend the virtual Annual Meeting, you must be a holder of MPC shares as of | ||||
| The virtual meeting platform is supported across browsers and devices running the most updated version of applicable software and plug-ins. Participants should give themselves plenty of time to log in and ensure they have a strong Wi-Fi connection, and they can hear streaming audio prior to the start of the meeting. | |||||
If you encounter technical difficulties with the virtual meeting platform on the meeting day, please call the technical support number shown on the meeting website. Technical support will be available starting at 9:45 a.m. EDT until the end of the meeting. | |||||
| 80 | Marathon Petroleum Corporation | |||||||
| FAQS ABOUT VOTING AND THE ANNUAL MEETING | ||
| Q. | How do I ask a question during the virtual Annual Meeting? | ||||
| A. | The question and answer session will include questions submitted in advance of, and questions submitted live during, the Annual Meeting. You may submit a question in advance of the meeting at www.proxyvote.com after logging in with your 16-digit control number. Questions may be submitted during the Annual Meeting through www.virtualshareholdermeeting.com/ | ||||
| Q. | How do I vote? | ||||
| A. | Shareholders of record may vote either online during the virtual Annual Meeting or by proxy prior to the Annual Meeting. Whether or not you plan to participate in the virtual Annual Meeting, we encourage you to vote by proxy prior to the virtual Annual Meeting using one of the following options. If you attend the virtual Annual Meeting and vote during the meeting, that vote will override your proxy vote. | ||||
| | | |||||||||||||||||||||
Via the Internet: Follow the instructions in the Notice, proxy card or voting instruction form. | Call Toll-Free: Call the toll-free number on your proxy card or voting instruction form. | Mail Signed Proxy Card: Follow the instructions on your proxy card or voting instruction form. | |||||||||||||||||||||
| Q. | How do I know whether I am a shareholder of record or a beneficial owner of shares? | ||||
| A. | If your shares are registered in your name with our transfer agent, Computershare Trust Company, N.A., you are a shareholder of record with respect to those shares, and you received the Notice or printed proxy materials directly from us. If your shares are held in an account at a brokerage firm, bank, broker-dealer or other similar organization, you are the “beneficial owner” of such shares, and the Notice or printed proxy materials were forwarded to you by that organization. In that circumstance, the organization is considered the shareholder of record for purposes of voting at the Annual Meeting. As a beneficial owner, you have the right to instruct the organization how to vote the shares held in your account. | ||||
| Q. | How are votes counted? | ||||
| A. | Each share counts as one vote. | ||||
| Q. | May I change or revoke my vote? | ||||
| A. | If you are a shareholder of record, you may change or revoke your vote before the Annual Meeting by submitting a subsequent proxy card, voting again via telephone or the internet, by written request to our Chief Legal Officer and Corporate Secretary prior to the meeting or by attending the virtual Annual Meeting and voting your shares online. Any change or revocation of your vote must be received by the applicable voting deadlines. | ||||
| If you are a beneficial owner of shares, you must contact your broker or other intermediary with whom you have an account to change or revoke your voting instructions. | |||||
| Q. | What is the voting requirement to approve each proposal? | ||||
| A. | Proposal 1. Our Bylaws include a majority vote standard for uncontested director elections. Because the number of nominees does not exceed the number of directors to be elected at the Annual Meeting, the election of each director nominee is uncontested and thus requires a majority of the votes cast. Abstentions and broker non-votes will not be considered votes “cast” and will have no effect on the outcome. | ||||
| Any director nominee who does not receive a majority of the votes cast is required by our Bylaws to submit an irrevocable resignation to the Corporate Governance and Nominating Committee of the Board, which will make a recommendation to the Board as to whether to accept or reject the resignation or take other action. The Board would, within 90 days following certification of the election results, publicly disclose its decision regarding the resignation and, if such resignation was rejected, the rationale behind the decision. | |||||
| 2024 Proxy Statement | 81 | |||||||
| FAQS ABOUT VOTING AND THE ANNUAL MEETING | ||
Proposal 2 will be approved if it receives the affirmative vote of a majority of the votes cast. Abstentions will not be considered votes “cast” and will have no effect on the outcome. Because the ratification of an independent auditor is a routine matter on which brokers may vote, there will be no broker non-votes with respect to this proposal. | |||||
Proposal 3 will be approved if it receives the affirmative vote of a majority of the votes cast. Abstentions and broker non-votes will not be considered votes “cast” and will have no effect on the outcome. Although the advisory vote on this proposal is nonbinding, the Board will consider the results of the vote when making executive compensation decisions. | |||||
For Proposal 4, the option receiving the greatest number of votes cast will be considered the frequency recommended by shareholders. Abstentions and broker non-votes will not be considered votes “cast” and will have no effect on the outcome. Although the advisory vote on this proposal is nonbinding, the Board will consider the results of the vote when determining the frequency of the advisory vote on NEO compensation. | ||||||||||
Proposal 5 will be approved if it receives the affirmative vote of the holders of at least a majority of the outstanding shares of our common stock entitled to vote. Abstentions and broker non-votes will have the same effect as votes against the proposal. | ||||||
Each of Proposals | |||||||
Proposal | |||||||
| Q. | What are “broker non-votes?” | ||||
| A. | The NYSE permits brokers to vote their customers’ shares on routine matters when the brokers have not received voting instructions from such customers. The ratification of an independent auditor is an example of a routine matter on which brokers may vote in this manner. Brokers may not vote their customers’ shares on non-routine matters, such as the election of directors or proposals related to executive compensation, unless they have received voting instructions from their customers. Shares held by brokers on behalf of customers who do not provide voting instructions on non-routine matters are “broker non-votes.” | ||||
| Q. | Why did I receive a Notice in the mail regarding the internet availability of proxy materials instead of a full set of printed materials? | ||||
| A. | We provide our proxy materials over the internet. Unless you request a printed copy of the proxy materials, we will send you a Notice explaining how to access the proxy materials over the internet. This allows us to expedite your receipt of proxy materials, conserve natural resources and lower the cost of the meeting. You can request proxy materials in printed form by following the instructions provided in the Notice. | ||||
| Q. | Will I receive more than one copy of the proxy materials if multiple shareholders share my address? | ||||
| A. | Unless we have received contrary instructions from one or more of the shareholders sharing your address, we will send only one set of proxy materials to your address. You may request, and we will promptly deliver upon such request, a separate copy of proxy materials be sent to your address by calling (419) 421-3636 or by writing to Marathon Petroleum Corporation, Shareholder Services Office, 539 South Main Street, Findlay, OH 45840. Shareholders sharing an address who now receive multiple copies of the proxy materials may request delivery of a single set by calling us at the above number or writing to us at the above address. | ||||
| Q. | What constitutes a quorum? | ||||
| A. | Under our Bylaws, a quorum is a majority of the voting power of the outstanding shares of stock entitled to vote. Both abstentions and broker non-votes are counted in determining whether a quorum is present for the meeting. | ||||
| 82 | Marathon Petroleum Corporation | |||||||
| FAQS ABOUT VOTING AND THE ANNUAL MEETING | ||
| Q. | Will any other matters be presented at the Annual Meeting? | ||||
| A. | If any matters are presented at the Annual Meeting other than the proposals on the proxy card, the members of the Proxy Committee will vote on them using their best judgment. Your signed proxy card, or internet or telephone vote, provides this authority. Under our Bylaws, notice of any matter (including director nominations outside of our proxy access process) to be presented by a shareholder for a vote at the Annual Meeting must have been received by December 14, | ||||
| Q. | How are proxies solicited, and what are the costs of proxy solicitation? | ||||
| A. | We will pay the costs of this solicitation of proxies. In addition to soliciting proxies by mail, our directors, officers and employees may solicit proxies by telephone, in person or by other means. They will not receive any extra compensation for this work. We have retained D.F. King & Co., Inc., a professional proxy soliciting organization, to assist with the solicitation of proxies for a fee of $25,000, plus a charge for telephone solicitations and reimbursement for certain expenses. We will also make arrangements with brokerage firms and other custodians, nominees and fiduciaries to forward proxy solicitation material to | ||||
| Q. | When must shareholder proposals and director nominations be submitted for the | ||||
| A. | In accordance with our Bylaws, shareholder proposals submitted for inclusion in our | ||||
| Shareholder proposals and director nominations submitted pursuant to the previous paragraph should be sent to our Chief Legal Officer and Corporate Secretary at: | |||||
Chief Legal Officer and Corporate Secretary Marathon Petroleum Corporation 539 South Main Street Findlay, OH 45840 | |||||
| APPENDICES | ||
| Appendix I. Non-GAAP Financial Measures | ||
| We and MPLX report our financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). | ||
| Management uses certain financial measures to evaluate our operating performance that are calculated and presented on the basis of methodologies other than in accordance with GAAP. We believe these non-GAAP financial measures are useful to investors and analysts to assess our ongoing financial performance because, when reconciled to their most comparable GAAP financial measures, they provide improved comparability between periods through the exclusion of certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, and our calculations thereof may not be comparable to similarly titled measures reported by other companies. | ||
| Adjusted EBITDA and ACB Adjusted EBITDA | ||
| MPC’s Adjusted EBITDA is defined as net income (loss) attributable to MPC adjusted for: (i) net interest and other financial costs; (ii) provision/benefit for income taxes; (iii) noncontrolling interests; (iv) depreciation and amortization; (v) refining planned turnaround costs and (vi) other adjustments as deemed necessary, as shown in the table below. We believe excluding turnaround costs from this metric is useful for comparability to other companies as certain of our competitors defer these costs and amortize them between turnarounds. | ||
ACB Adjusted EBITDA, which is a metric used for purposes of evaluating performance under MPC’s ACB program (described beginning on page 43), is derived from Adjusted EBITDA as shown in the table below. | ||
| Reconciliation of Net Income Attributable to MPC to Adjusted EBITDA and ACB Adjusted EBITDA | |||||||||||
| ($ in millions) | Twelve Months Ended December 31, | ||||||||||
| Net income attributable to MPC | $ | ||||||||||
| Net income attributable to noncontrolling interests | |||||||||||
| Provision for income taxes | |||||||||||
| Net interest and other financial costs | |||||||||||
| Depreciation and amortization | |||||||||||
| Refining planned turnaround costs | |||||||||||
Garyville incident response costs(a) | 16 | ||||||||||
| LIFO inventory | |||||||||||
| Gain on sale of assets | |||||||||||
| Adjusted EBITDA | $ | ||||||||||
| Less: Refining planned turnaround costs | (1,201) | ||||||||||
Less: Garyville incident response costs(a) | (16) | ||||||||||
| ACB Adjusted EBITDA | $ | 17,768 | |||||||||
| (a) In August 2023, a naptha release and resulting fire occurred at MPLX’s Garyville Tank Farm, resulting in the loss of four storage tanks with a combined shell capacity of 894 thousand barrels. MPLX incurred $16 million of incident response costs, net of insurance recoveries, during the year ended December 31, 2023. | |||||||||||
| 2024 Proxy Statement | A-1 | |||||||
| APPENDICES | ||
| Distributable Cash Flow | ||
| MPLX’s Adjusted EBITDA is defined as net income adjusted for: (i) provision for income taxes; (ii) interest and other financial costs; (iii) depreciation and amortization; (iv) income/(loss) from equity method investments; (v) distributions and adjustments related to equity method investments; (vi) gain on sales-type | ||
| Reconciliation of MPLX Net Income to Distributable Cash Flow Attributable to MPLX | ||||||||||||||
| ($ in millions) | Twelve Months Ended December 31, | |||||||||||||
| MPLX net income | $ | |||||||||||||
| Provision for income taxes | ||||||||||||||
| Interest and other financial costs | $ | |||||||||||||
| Income from operations | ||||||||||||||
| Depreciation and amortization | ||||||||||||||
| Income from equity method investments | ||||||||||||||
| Distributions/adjustments related to equity method investments | ||||||||||||||
| Gain on sales-type leases and equity method investments | ||||||||||||||
Garyville incident response costs(a) | 16 | |||||||||||||
Other(b) | ||||||||||||||
| Adjusted EBITDA | $ | |||||||||||||
| Adjusted EBITDA attributable to noncontrolling interests | ||||||||||||||
| Adjusted EBITDA attributable to MPLX LP | $ | |||||||||||||
| Deferred revenue impacts | ||||||||||||||
| Sales-type lease payments, net of income | ||||||||||||||
Net interest and other financial costs | ||||||||||||||
| Maintenance capital expenditures, net of reimbursements | ||||||||||||||
| Equity method investment maintenance capital expenditures paid out | ||||||||||||||
| Other | ||||||||||||||
| Distributable Cash Flow attributable to MPLX LP | $ | |||||||||||||
| (a) In August 2023, a naptha release and resulting fire occurred at MPLX’s Garyville Tank Farm, resulting in the loss of four storage tanks with a combined shell capacity of 894 thousand barrels. MPLX incurred $16 million of incident response costs, net of insurance recoveries, during the year ended December 31, 2023. | ||||||||||||||
| (b) Includes unrealized derivative gain/(loss), equity-based compensation and other miscellaneous items. | ||||||||||||||
| (c) Excludes gain/ | ||||||||||||||
| A-2 | Marathon Petroleum Corporation | |||||||
| APPENDICES | ||
| Appendix II. Proposed Amendment to the MPC Restated Certificate of Incorporation | ||
| Text of the proposed amendment (deletions are indicated by strikeouts and additions are indicated by underlining): | ||
ARTICLE TEN PERSONAL LIABILITY OF DIRECTORS AND OFFICERS LIMITED | ||
No Director or officer of the Corporation shall be personally liable to the Corporation or any of its stockholders for monetary damages for breach of fiduciary duty as a Director or officer, as applicable; provided, however, that the foregoing provision will not eliminate or limit the liability of a Director (a) a Director or officer for any breach of that Director’s or officer’s duty of loyalty to the Corporation or its stockholders, (b) a Director or officer for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (c) a Director pursuant to section 174 of the DGCL, as the same exists or as that provision hereafter may be amended or modified from time to time, or (d) a Director or officer for any transactions from which that Director or officer derived an improper personal benefit, or (e) an officer in any action by or in right of the Corporation. If the DGCL is amended or modified after the filing of this Restated Certificate of Incorporation to authorize corporate action further eliminating or limiting the personal liability of Directors or officers, then the liability of a Director or officer, in addition to the limitation on personal liability provided in this Restated Certificate of Incorporation, will be limited to the fullest extent permitted by that law, as so amended or modified. Any repeal or modification of this Article TEN by the stockholders of the Corporation will be prospective only and will not have any effect on the liability or alleged liability of a Director or officer arising out of or related to any event, act or omission that occurred prior to such repeal or modification. Solely for purposes of this Article TEN, “officer” shall have the meaning provided in Section 102(b)(7) of the DGCL as currently in effect and as it may be hereafter amended. | ||
| 2024 Proxy Statement | A-3 | |||||||
| APPENDICES | ||
| Appendix III. Proposed Amendment to the MPC Restated Certificate of Incorporation (Declassification Amendment) | ||
| Text of the proposed amendment (deletions are indicated by strikeouts and additions are indicated by underlining): | ||
ARTICLE SIX BOARD OF DIRECTORS | ||
1. Authority of the Board. The business and affairs of the Corporation will be managed by or under the direction of the Board. In addition to the authority and powers conferred on the Board by the DGCL or by the other provisions of this Restated Certificate of Incorporation, the Board hereby is authorized and empowered to exercise all such powers and do all such acts and things as may be exercised or done by the Corporation, subject to the provisions of the DGCL, this Restated Certificate of Incorporation, any Preferred Stock Designation and any Bylaws of the Corporation; provided, however, that no Bylaws hereafter adopted, or any amendments thereto, will invalidate any prior act of the Board that would have been valid if such Bylaws or amendment had not been adopted. | ||
2. Number of Directors. The number of Directors which will constitute the whole Board shall be fixed from time to time exclusively by, and may be increased or decreased from time to time exclusively by, the affirmative vote of a majority of the Directors then in office (subject to such rights of holders of a series of shares of Preferred Stock to elect one or more Directors pursuant to any provisions contained in any Preferred Stock Designation), but in any event will not be less than three (3) or greater than | ||
3. Classification and Terms of | ||
4. Election and Succession of Directors. Election of Directors need not be by written ballot unless the Bylaws of the Corporation so provide. At each annual election prior to the date of the | ||
| APPENDICES | ||
5. Removal of Directors. Subject to the rights, if any, of holders of Preferred Stock as set forth in any applicable Preferred Stock Designation, Directors of the Corporation may be removed from office only (a) by the Court of Chancery pursuant to Section 225(c) of the DGCL or (b) for cause by the affirmative vote of the holders of at least eighty percent (80%) of the voting power of all then outstanding shares of capital stock of the Corporation generally entitled to vote in the election of Directors, voting together as a single class: (i) but, prior to the date of the | ||
6. Vacancies. Subject to the rights, if any, of holders of Preferred Stock as set forth in any Preferred Stock Designation, newly created directorships resulting from any increase in the number of Directors and any vacancies on the Board resulting from death, resignation, removal or other cause will be filled by the affirmative vote of a majority of the Directors remaining in office even if they represent less than a quorum of the Board, or by the sole remaining Director if only one Director remains in office. AnyPrior to the date of the | ||
| APPENDICES | ||
| Appendix | ||
| Text of the proposed amendment (deletions are indicated by strikeouts and additions are indicated by underlining): | ||
ARTICLE SIX BOARD OF DIRECTORS | ||
5. Removal of Directors. Subject to the rights, if any, of holders of Preferred Stock as set forth in any applicable Preferred Stock Designation, Directors of the Corporation may be removed from office only (a) by the Court of Chancery pursuant to Section 225(c) of the DGCL or (b) for cause by the affirmative vote of the holders of at least a majority eighty percent (80%) of the voting power of all then outstanding shares of capital stock of the Corporation generally entitled to vote in the election of Directors, voting together as a single class. Except as Applicable Laws otherwise provide, “cause” for the removal of a Director will be deemed to exist only if the Director whose removal is proposed: (i) has been convicted, or has been granted immunity to testify in any proceeding in which another has been convicted, of a felony by a court of competent jurisdiction and that conviction is no longer subject to direct appeal; (ii) has been found to have been grossly negligent or guilty of misconduct in the performance of his or her duties to the Corporation in any matter of substantial importance to the Corporation by a court of competent jurisdiction; or (iii) has been adjudicated by a court of competent jurisdiction to be mentally incompetent, which mental incompetency directly affects his or her ability to serve as a Director of the Corporation. | ||
ARTICLE EIGHT AMENDMENTS OF THIS RESTATED CERTIFICATE | ||
Except as otherwise provided in this Restated Certificate of Incorporation, the Corporation reserves the right, at any time and from time to time, to alter, amend, repeal or restate any provision of this Restated Certificate of Incorporation, and to add or insert other provisions authorized by the laws of the State of Delaware at the time in force, in the manner now or hereafter provided by the DGCL, and all rights conferred upon stockholders by this Restated Certificate of Incorporation. in its present form or as hereafter amended, are granted subject to this reservation.Notwithstanding anything in this Restated Certificate of Incorporation or the Bylaws of the Corporation to the contrary, the affirmative vote of the holders of at least | ||
| APPENDICES | ||
| Appendix V. Proposed Amendment to the MPC Restated Certificate of Incorporation (combined Officer Exculpation, Declassification and Supermajority Elimination | ||
If our shareholders approve the | ||
| Text of the proposed amendment (deletions are indicated by strikeouts and additions are indicated by underlining): | ||
ARTICLE SIX BOARD OF DIRECTORS | ||
1. Authority of the Board. The business and affairs of the Corporation will be managed by or under the direction of the Board. In addition to the authority and powers conferred on the Board by the DGCL or by the other provisions of this Restated Certificate of Incorporation, the Board hereby is authorized and empowered to exercise all such powers and do all such acts and things as may be exercised or done by the Corporation, subject to the provisions of the DGCL, this Restated Certificate of Incorporation, any Preferred Stock Designation and any Bylaws of the Corporation; provided, however, that no Bylaws hereafter adopted, or any amendments thereto, will invalidate any prior act of the Board that would have been valid if such Bylaws or amendment had not been adopted. | ||
2. Number of Directors. The number of Directors which will constitute the whole Board shall be fixed from time to time exclusively by, and may be increased or decreased from time to time exclusively by, the affirmative vote of a majority of the Directors then in office (subject to such rights of holders of a series of shares of Preferred Stock to elect one or more Directors pursuant to any provisions contained in any Preferred Stock Designation), but in any event will not be less than three (3) or greater than | ||
3. Classification and Terms of Directors. The Prior to the date of the | ||
| A-7 | ||||||||
| APPENDICES | ||
4. Election and Succession of Directors. Election of Directors need not be by written ballot unless the Bylaws of the Corporation so provide. At each annual election prior to the date of the | ||
5. Removal of Directors. Subject to the rights, if any, of holders of Preferred Stock as set forth in any applicable Preferred Stock Designation, Directors of the Corporation may be removed from office only (a) by the Court of Chancery pursuant to Section 225(c) of the DGCL or (b) for cause by the affirmative vote of the holders of at least a majority eighty percent (80%) of the voting power of all then outstanding shares of capital stock of the Corporation generally entitled to vote in the election of Directors, voting together as a single class: (i) but, prior to the date of the | ||
6. Vacancies. Subject to the rights, if any, of holders of Preferred Stock as set forth in any Preferred Stock Designation, newly created directorships resulting from any increase in the number of Directors and any vacancies on the Board resulting from death, resignation, removal or other cause will be filled by the affirmative vote of a majority of the Directors remaining in office even if they represent less than a quorum of the Board, or by the sole remaining Director if only one Director remains in office. AnyPrior to the date of the | ||
| A-8 | Marathon Petroleum Corporation | |||||||
| APPENDICES | ||
ARTICLE EIGHT AMENDMENTS OF THIS RESTATED CERTIFICATE | ||
Except as otherwise provided in this Restated Certificate of Incorporation, the Corporation reserves the right, at any time and from time to time, to alter, amend, repeal or restate any provision of this Restated Certificate of Incorporation, and to add or insert other provisions authorized by the laws of the State of Delaware at the time in force, in the manner now or hereafter provided by the DGCL, and all rights conferred upon stockholders by this Restated Certificate of Incorporation. in its present form or as hereafter amended, are granted subject to this reservation.Notwithstanding anything in this Restated Certificate of Incorporation or the Bylaws of the Corporation to the contrary, the affirmative vote of the holders of at least | ||
ARTICLE TEN PERSONAL LIABILITY OF DIRECTORS AND OFFICERS LIMITED | ||
No Director or officer of the Corporation shall be personally liable to the Corporation or any of its stockholders for monetary damages for breach of fiduciary duty as a Director or officer, as applicable; provided, however, that the foregoing provision will not eliminate or limit the liability of a Director (a) a Director or officer for any breach of that Director’s or officer’s duty of loyalty to the Corporation or its stockholders, (b) a Director or officer for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (c) a Director pursuant to section 174 of the DGCL, as the same exists or as that provision hereafter may be amended or modified from time to time, or (d) a Director or officer for any transactions from which that Director or officer derived an improper personal benefit, or (e) an officer in any action by or in right of the Corporation. If the DGCL is amended or modified after the filing of this Restated Certificate of Incorporation to authorize corporate action further eliminating or limiting the personal liability of Directors or officers, then the liability of a Director or officer, in addition to the limitation on personal liability provided in this Restated Certificate of Incorporation, will be limited to the fullest extent permitted by that law, as so amended or modified. Any repeal or modification of this Article TEN by the stockholders of the Corporation will be prospective only and will not have any effect on the liability or alleged liability of a Director or officer arising out of or related to any event, act or omission that occurred prior to such repeal or modification. Solely for purposes of this Article TEN, “officer” shall have the meaning provided in Section 102(b)(7) of the DGCL as currently in effect and as it may be hereafter amended. | ||
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