The Company grants stock options under its Executive Stock Option Plan (“ESOP”) to selected individuals. The options provide

the holder the right to purchase MFC common shares at an exercise price equal to the higher of the prior day, prior five-day or

prior ten-day average closing market price of MFC common shares on the Toronto Stock Exchange on the date the options are

granted. The options vest over a period not exceeding four years and expire not more than ten years from the grant date.

Effective with the 2015 grant, options may only be exercised after the fifth-year anniversary. A total of 73,600,000 common


For the years ended December 31,	2025		2024
For the years ended December 31,	Number of options (in millions)	Weighted average exercise price	Number of options (in millions)	Weighted average exercise price
Outstanding, January 1	11	$23.35	16	$22.73
Exercised	(3)	22.86	(5)	21.56
Outstanding, December 31	8	$23.51	11	$23.35
Exercisable, December 31	8	$23.51	6	$22.66


	Options outstanding			Options exercisable
For the year ended December 31, 2025	Number of options (in millions)	Weighted average exercise price	Weighted average remaining contractual life (in years)	Number of options (in millions)	Weighted average exercise price	Weighted average remaining contractual life (in years)
$17.59 - $20.99	1	$17.59	0.15	1	$17.59	0.15
$21.00 - $24.73	7	$23.94	3.16	7	$23.94	3.16
Total	8	$23.51	2.96	8	$23.51	2.96

Compensation expense related to stock options was $nil for the year ended December 31, 2025 (2024 – $nil).

In 2000, the Company granted deferred share units (“DSUs”) on a one-time basis to certain employees under the ESOP. These

DSUs vest over a three-year period and each DSU entitles the holder to receive one common share on retirement or termination

of employment. When dividends are paid on common shares, holders of DSUs are deemed to receive dividends at the same

rate, payable in the form of additional DSUs. The number of these DSUs outstanding was 45,000 as at December 31, 2025

In addition, for certain employees and pursuant to the Company’s deferred compensation program, the Company grants DSUs

under the Restricted Share Units (“RSUs”) Plan which entitle the holder to receive payment in cash equal to the value of the

same number of common shares plus credited dividends on retirement or termination of employment. In 2025, the Company

granted 22,000 DSUs (2024 – 45,000) to certain employees which vest after 36 months. In 2025, 77,000 DSUs (2024 – 44,000)

were granted to certain employees who elected to defer receipt of all or part of their annual bonus, and these DSUs vested

immediately. In 2025, 16,000 DSUs (2024 – 19,000) were granted to certain employees who elected to defer payment of all or

Under the Stock Plan for Non-Employee Directors, each eligible director may elect to receive his or her annual director’s retainer

and fees in DSUs (which vest immediately) or common shares in lieu of cash. In 2025, 72,000 DSUs (2024 – 85,000) were

issued under this arrangement. Upon termination of their Board service, an eligible director who has elected to receive DSUs will

be entitled to receive cash equal to the value of the DSUs accumulated in their account, or at their direction, an equivalent

number of common shares. The Company is allowed to issue up to one million common shares under this plan, after which

The fair value of 187,000 DSUs issued during the year was $49.84 per unit as at December 31, 2025 (2024 – 193,000 at $44.16


For the years ended December 31,
Number of DSUs (in thousands)	2025	2024
Outstanding, January 1	2,050	1,963
Issued	187	193
Reinvested	71	86
Redeemed	(634)	(191)
Forfeitures and cancellations	(3)	(1)
Outstanding, December 31	1,671	2,050

Of the DSUs outstanding as at December 31, 2025, 45,000 (2024 – 149,000) entitle the holder to receive common shares,

957,000 (2024 – 867,000) entitle the holder to receive payment in cash and 669,000 (2024 – 1,034,000) entitle the holder to

Compensation expense related to DSUs was $10 for the year ended December 31, 2025 (2024 – $10).

The carrying and fair value of the DSUs liability as at December 31, 2025 was $83 (2024 – $84) and was included in other

For the year ended December 31, 2025, 5.7 million RSUs (2024 – 6.7 million) and 1.2 million Performance Share Units (“PSUs”)

(2024 – 1.5 million) were granted to certain eligible employees under MFC’s Restricted Share Unit Plan. The fair value of the

RSUs and PSUs granted during the year was $49.84 per unit as at December 31, 2025 (2024 – $44.16 per unit). Each RSU and

PSU entitles the holder to receive payment equal to the market value of one common share, plus credited dividends, at the time

RSUs and PSUs granted in March 2025 will vest after 36 months from their grant date and the related compensation expense is

recognized over this period, unless the employee is eligible to retire at the time of grant or will be eligible to retire during the

vesting period, in which case the cost is recognized at the grant date or over the period between the grant date and the date on

which the employee is eligible to retire, respectively. Compensation expense related to RSUs and PSUs was $229 and $65,

respectively, for the year ended December 31, 2025 (2024 – $215 and $96, respectively).

The carrying and fair value of the RSUs and PSUs liability as at December 31, 2025 was $932 (2024 – $910) and was included

The Company’s Global Share Ownership Plan allows qualifying employees to apply up to five per cent of their annual base

earnings toward the purchase of common shares. The Company matches a percentage of the employee’s eligible contributions

up to a maximum amount. The Company’s contributions vest immediately. All contributions are used to purchase common shares