Manulife hikes CEO's pay by 20.5%

TORONTO - Manulife Financial paid Chief Executive Donald Guloien C$10.4 million (S$12.8 million) in 2012, a 20.5 per cent rise from the previous year due to the company's increased profit, the insurer said on Friday.

Guloien, who has shepherded the company through a rebuilding as it has reduced its exposure to financial markets, earned base salary of C$1.1 million, and other compensation including stock and options awards of C$6 million and a cash bonus of C$2.8 million, according to a regulatory filing.

That was up from C$8.7 million in total compensation for 2011.

Manulife said the pay hike was due to Guloien's strong performance since becoming CEO in 2009, and said the increase"moves the CEO's compensation closer to, but still slightly below the median of Manulife's peer group."

Company spokeswoman Laurie Lupton said Manulife, which earns more than half of its profits from international operations, defines its peer group as both large international insurers and domestic rivals such as Sun Life Financial and Great-West Lifeco.

Great-West Lifeco CEO Allen Loney took home C$4.5 million in pay for last year, while Sun Life has not yet released its 2012 executive compensation.

Manulife is Canada's largest life insurer, and also owns US-based John Hancock and a growing Asian division.

Manulife earned C$1.7 billion in 2012, up from C$129 million the previous year, when the results were hurt by the company's exposure to volatile markets.