Benchmarking against our peers Manulife is made up of many related but distinct businesses that need people who have unique skills and capabilities. This makes it difficult to identify direct public company peers that are relevant for both compensation benchmarking and meaningful TSR performance comparisons. Accordingly, we use two peer groups: a compensation peer group and a performance peer group. The management resources and compensation committee regularly reviews our peers to ensure the groups remain an appropriate comparator for Manulife. The committee made no changes to the peer groups in 2022. Compensation peer group While we are headquartered and based out of Toronto, we operate on a global scale with the majority of our earnings derived from markets outside of Canada. Accordingly, we draw on and compete for talent with other global businesses, including those who compensate talent according to local practices. We use a compensation peer group to assess the competitiveness of our compensation practices, and to set total direct compensation levels, including each discrete element. This helps us attract and retain high caliber executive talent capable of achieving our ambitious goals. The compensation peer group for our named executives includes companies that publicly disclose compensation data for roles that are comparable in size and scope to the roles of our named executives, and that are considered competitors for executive talent. For named executives whose roles are not directly comparable with roles in the compensation peer group, we supplement the information used in determining compensation with data from the Financial Services Executive Compensation Survey conducted by Korn Ferry and the Diversified Insurance Study of Executive Compensation conducted by Willis Towers Watson. We generally seek to align target total direct compensation for our named executives with the market median and may adjust the pay positioning of a named executive’s target total direct compensation above or below the market median depending on the importance of the role, the named executive’s performance, experience, or for other reasons. Total direct compensation is denominated in U.S. dollars for a majority of our named executives because we draw from an international talent pool for executives, where the U.S. dollar is the most common currency basis for setting compensation. 2022 compensation peer group AIA Group Limited Bank of Montreal Bank of Nova Scotia MetLife, Inc. Power Corporation Principal Financial Group Inc. Prudential Financial, Inc. Prudential plc Royal Bank of Canada Sun Life Financial Inc. Toronto-Dominion Bank Global insurance companies Canadian banks 50 Manulife Financial Corporation