Manulife Financial Corp. chief executive Donald Guloien earned $10.45-million in 2012, with most of the money coming from new grants of share units and stock options.
The company's latest shareholder proxy circular shows the insurance executive received a 20-per-cent pay increase in 2012 over his 2011 compensation of $8.7-million, due largely to a jump in the value of his annual bonus to $2.8-million in 2012 from $1.58-million in 2011.
The bulk of 2012 compensation came from $3-million worth of share units and $3-million worth of stock options, in addition to his base salary of $1.1-million, a $2.8-million bonus, pension gains of $455,400 and perks totalling $101,836.
No senior executives of Manulife exercised their stock options last year, and Mr. Guloien's accumulated options were worth $811,000 as of Dec. 31. The company's financial woes and its plunging share price between 2008 and mid-2012 mean that options granted in nine of the past 10 years (all but 2012) are current under water and cannot be exercised, the proxy circular noted.
However, Manulife said Mr. Guloien has share units worth $8-million as of Dec. 31 that have not paid out yet.
Mr. Guloien is eligible for a $1.2-million annual pension when he retires, and hit Manulife's maximum pension cap last year, which means he cannot earn any more credit in the pension plan. As a result, Manulife said it began last May making contributions on his behalf to a defined-contribution pension plan.
(Janet McFarland is a Globe and Mail Business Reporter.)
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