MERITAGE INVESTOR OUTREACH PRESENTATION

DECEMBER 2022

MERITAGE'S COMPENSATION GOVERNANCE STRATEGY

  • Our NEO compensation program is designed to drive and reward superior corporate performance both annually and over the long-term while simultaneously striving to be externally competitive amongst our peer group
  • Our compensation program addresses:

Alignment of NEO pay with performance

Succession planning of our NEOs

for retention planning

  • Long track record of fair executive compensation
  • Our compensation policies and programs have historically received strong support from our shareholders, ISS, Glass Lewis and MSCI
  • Our Board of Directors has had a robust succession strategy in place for all NEOs
    • Evidenced by the evolution over the last 7+ years
    • Based on identifying key skills and competencies needed for today and in the future
  • Latest NEO hiring of Malissia Clinton as General Counsel improved the capabilities and diversity of our management team
  • We utilize an established third party compensation consultant to conduct annual compensation reviews and benchmark studies to assist us in remaining aligned with general corporate best practices and competitive with industry compensation programs

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OVERVIEW OF MERITAGE'S ESG STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

Sustainability & resource efficiency

Relationship management with employees,

Accountable governance & transparent

customers, vendors & the community

operations

Topics

HERS rating

DEI

• Ethics & compliance, risk management

Climate reporting

Recruitment & retention, company

• ESG data accuracy & controls

Public policy

culture, voice of the employee

• ESG advisory council guidance

Materiality

Customer satisfaction

Industry ESG data standardization

Health & safety

UN SDGs alignment

Supply chain sustainability

• Support for local communities

Goals

Baseline measurements and GHG

Increase engagement and DEI initiatives

Documentation of existing practices

reductions

Plan

Reduce HERS through better inputs

• Increase diversity with employees

• Ethics and human rights policies

and building science

• Increase diversity with trades

• Annual refresh of all guidance

Action

GHG output (our Scope 3)

documents

Work with vendors to improve their

• Philanthropic efforts

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HIGHLIGHTS OF MERITAGE'S ESG INITIATIVES

ENVIRONMENTAL

SOCIAL

GOVERNANCE

  • Achieved annual avg. HERS rating of 53
  • One of top 3 HERS ratings in our peer group
  • First in our peer group to issue TCFD reporting and become an official TCFD supporter

Datapoints relate to 2021.

Peer group refers to U.S. public production builders.

  • 4.5 Glassdoor ratings compared to 3.9 peer group avg.
  • 0.7 TRIR safety rating
  • 92.1% customer satisfaction AVID ratings in
    2021
  • Signed CEO Action for Diversity & Inclusion pledge
  • $1M+ in philanthropy to social equity & environmental sustainability efforts
  • 27% board diversity (3 of 11)
  • Directors are members of the National Association of Corporate Directors
  • Board & mgmt. expertise in ESG
  • Board & mgmt. oversight of strategy & risk spanning financial, cybersecurity and ESG
  • Only builder in peer group to have standalone Environmental, Social & Sustainability Board Committee to provide oversight to environmental & social risks
  • Annual ESG reporting & TCFD reporting
  • Disclosed EEO-1 data

TCFD refers to Task Force on Climate-Related Financial Disclosures. TRIR refers to Total Recordable Incident Rate.

Link for ESG report and TCFD report found here.

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Disclaimer

Meritage Homes Corporation published this content on 21 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2022 17:09:08 UTC.