We did not grant stock options to named executives in 2022. The table below shows the total number of stock options, share-settled deferred share units outstanding, and securities available for future grant under the plans: Stock options/ DSUs outstanding Securities available for future issue As a % of diluted As a % of diluted (as at December 31, 2022) Number common shares Number common shares Stock plan for non-employee directors 271,684 0.01% 6,475,414 0.34% Stock options 19,759,198 1.03% Deferred share units 165,860 0.01% Total 20,196,742 1.06% 6,475,414 0.34% Overhang, dilution and burn rate (as at December 31) 2020 2021 2022 Overhang 1.56% 1.44% 1.40% the total number of common shares reserved for issue to employees and directors, less the number of stock options and share-settled deferred share units redeemed, expressed as a percentage of the weighted average number of securities outstanding in the year Dilution 1.24% 1.15% 1.11% the total number of stock options and share-settled deferred share units outstanding, expressed as a percentage of the weighted average number of securities outstanding in the year Burn rate the number of stock options and share-settled deferred share units granted annually, expressed as a percentage of the weighted average number of securities outstanding in the year • Executive stock option plan 0.25% 0.00% 0.00% • Stock plan for non-employee directors 0.01% 0.01% 0.01% Retirement benefits Our named executives along with our employees in the United States participate in a defined benefit cash balance plan, a 401k plan and a defined contribution supplemental plan, and a 401k savings plan. In Canada, our named executives along with our employees participate in a defined contribution pension plan and a defined contribution supplemental plan. Our supplemental retirement arrangements are offered to officers in Canada and all employees United States when tax rules limit the benefits that would otherwise be provided by our registered (or tax qualified) pension plans. These supplemental arrangements are not tax qualified and are typically unfunded. To receive the benefits from our supplemental defined contribution arrangements, our named executives generally must comply with several conditions after they leave our employment: • non-solicit: all executives, other than the few in traditional defined benefit supplemental arrangements, have a non-solicit provision for 24 months after their employment ends • non-compete: – 24 months for all executives in traditional defined benefit supplemental arrangements – between 12 and 24 months for Senior Officers in capital accumulation supplemental arrangements. • if an executive breaches the non-compete provision in their traditional defined benefit supplemental arrangement, the benefits are reduced by one-third • if an executive breaches any of the post-employment conditions attached to all or a part of their capital accumulation supplemental arrangements, those benefits are fully forfeited. 92 Manulife Financial Corporation