Equity-based incentives Restricted share units Performance share units Stock options Dividend equivalents Credited as additional units at the same rate as Do not earn dividends paid on Manulife common shares and dividend subject to the same vesting conditions as the equivalents underlying grant Grants The grant price is the average closing price for the 10 trading days before the grant date The grant value of stock options is calculated using the Black-Scholes methodology Notice of retirement For awards granted in 2015 and after, named executives have to provide three months’ notice before leaving Manulife or they will lose their post- termination retirement benefits and all outstanding grants will be forfeited Closed trading Equity-based incentives are not granted when our insiders are prohibited windows from trading. Annual awards are normally granted 10 or more trading days following the end of the closed trading window after our year-end financial results are announced. Awards can also be made to select new executives at the time of hire. If the hire date falls within a closed trading window the grant is delayed until after the end of the closed trading window. The company has an automatic stock option exercise program that allows insiders to elect in advance to have their expiring stock options exercised through the program, which may occur within a closed trading window. How we calculate the payout for performance share units Performance share units granted in 2021 and 2022 will vest and pay out based on the formula below. Number of Performance Relative TSR Share price at PSU payout PSUs factor multiplier thetimeof Performance range: 0-150 +/-20% vesting share units Book value per Compared to our Calculated awarded and share (excluding performance using the received as AOCI) peer group as average dividend • weighting: 50% measured on the closing price of equivalents • threshold: 10% New York Stock Manulife during the below target Exchange (NYSE) common three-year • maximum: 8% shares on the period above target Top quartile = TSX for the 10 +20% trading days Core return on 2nd or 3rd quartile before the day equity =+0% the award vests • weighting: 50% Bottom quartile = • threshold: 40% -20% below target • maximum: 32% above target Performance is determined as an average of performance relative to the threshold, target and maximum targets set at the beginning of each of the three years in the performance period. The targets are tied to the board-approved budgets and consistent with our external guidance. 62 Manulife Financial Corporation