Executive Compensation Variable compensation The annual incentive and grant values of restricted share units, performance share units and stock options awarded for 2022. With the exception of one retiree who left the company, all material employees received incentive awards for 2022. Deferred variable compensation The total value of restricted share units, performance share units, deferred share units and stock options awarded for 2022. Severance payments In 2022, severance payments were made to material employees as indicated above. Total severance amounts of $3.36 million were agreed to for these material employees. To protect employee privacy, we have provided information about the highest single severance amount agreed to in 2022 for a material employee to the Office of the Superintendent of Financial Institutions (OSFI) on a confidential basis. The number of terminations each year fluctuates depending on circumstances. DEFERRED COMPENSATION OUTSTANDING ($ thousands) Total value of Value of Implicit RSUs/PSUs/DSUs Stock options deferred Deferred deferred change in Number of compensation compensation compensation deferred material Outstanding Outstanding Outstanding Outstanding outstanding paid out granted compensation employees vested unvested vested unvested at year-end in 2022 in 2022 value 44 $10,121 $163,078 $18,165 $865 $192,229 $48,101 $73,663 $(10,242) Restricted share units, performance share units and deferred share units Amounts are based on $24.15, the closing price of Manulife common shares on the TSX on December 31, 2022. Vested and unvested, unexercised in-the-money stock options Amounts are the difference between the exercise price of the stock options and $24.15, the closing price of Manulife common shares on the TSX on December 31, 2022. Other medium-term incentives Some material risk takers participate in medium-term incentive plans outside of our RSU/PSU/stock option plans. These plans are based on an internal book value of a business or the market value of funds managed. Deferred compensation paid out in 2022 The total value of restricted share units and performance share units vested and paid out and any gains from stock options exercised in 2022. Implicit change in deferred compensation value The increase (or decrease) in value of deferred compensation due to any change in share price and performance vesting conditions. 2023 Management information circular 111