Manulife's Executives See Compensation Rise In 2019, While Sun Life's Pay Falls

TH U RS DAY , APRI L 2, 2020

|

T HE GLO BE AND MAIL G

R EPORT ON BUSINESS

Insurer Aviva says it will pay dentists’ pandemic claims Company says it will ‘stand by’ its coverage for those forced to close their practices, but one Toronto specialist says many unanswered questions remain

Manulife’s executives see compensation rise in 2019, while Sun Life’s pay falls

Michael Duchnay, an oral medicine specialist seen in his Toronto office on Monday, says he is concerned the processing of individual claims may be ‘potentially rife for abuse.’ CHRISTOPHER KATSAROV/THE GLOBE AND MAIL

steps shortly for the dentists so that they can each submit claims that will be individually evaluated and settled.” For Michael Duchnay, an oral medicine specialist in Toronto who shut down his practice on March 15, Aviva’s commitment still leaves a lot of unanswered questions. One of his principal concerns is whether the practice interruption claims will be honoured and retroactive to the time he first closed his office after the directive of the Royal College of Dental Surgeons of Ontario. He said he’s also worried that the processing of individual claims could be “potentially rife for abuse.” “Although this written commitment appears to be a positive development … it remains uncertain the extent of coverage they intend to provide, how they intend to deal with the validation of individual claims and determine specific losses and payouts, and how long the process will take to complete before payment is received,” Dr. Duchnay said. “Much of the substance of this preliminary statement by Aviva will be borne out by the means and speed of its implementation,” he added. “There remains a great urgency to expedite matters, so that dentists are able to have confidence in returning to viable practices following the end of this crisis.” The industry-wide policy – sold to dentists and dental specialists by CDSPI Advisory Services Inc. and underwritten by Avi-

va Canada – is called TripleGuardTM Insurance and covers policyholders for fire, theft, liability and practice interruption, including special circumstances such as earthquakes and pandemics. The insurance policy says it is intended “to help offset” income loss during a pandemic outbreak. Automatically, policyholders have practice interruption coverage up to $1,000 a day after the first 24 hours (up to a $20,000 annual limit) when they are prohibited from entering their office by an order from a civil authority or public-health official. For an extra premium, policyholders can increase pandemic outbreak coverage up to $2,500 a day (up to an annual limit of $50,000) or up to $5,000 a day (up to an annual limit of $100,000). CDSPI, a financial-service provider for dental professionals, told The Globe and Mail on Monday it was working closely with Aviva to ensure the company had the information it needed regarding the various provincial government and regulatory announcements and recommendations issued over the past few weeks. “We are pleased that dentists who have purchased the policy will get the financial relief they have been seeking all along,” said Ed Dermit, president of CDSPI, in response to Aviva’s update. “It is the outcome we have been advocating with Aviva, on behalf of dentists.”

Top executives at Manulife Financial Corp. saw big bumps in their compensation in 2019 thanks to increased incentive pay, while payouts declined at Sun Life Financial Inc. as bonuses fell. Manulife paid chief executive officer Roy Gori $14.7-million last year, up from $12.99-million the year before. His cash bonus of $4.9-million was up from $4.1-million in 2018, and he received share and option awards totalling just less than $7.4-million, about $800,000 more than the year before. At Sun Life, CEO Dean Connor saw his total compensation slip to $9.65-million in 2019 from $9.71-million in 2018. His cash bonus fell to $1.8-million from $2.2-million in the prior year. Sun Life gave him $6.25-million in share and option awards, up from $6-million the year before. Both companies have incentive plans that set a “target” bonus based on a percentage of salary. They evaluate their business results for the past year, and adjust the target bonus amount up or down. Then, they evaluate individual performance and adjust again. The end result can be business performance that comes in under the company’s goals but a bonus that ends up above targets Both companies because of executives’ individual have incentive plans performance. Bonuses for Manulife’s top ex- that set a ‘target’ ecutives were up roughly 10 per bonus based on a cent to 20 per cent compared percentage of salary. with 2018. Manulife said it exceeded its annual financial goals They evaluate their for earnings and the profitability business results for of the new business it generated. the past year, and The “company performance adjust the target score” it used to award part of the bonuses was 112 per cent. That bonus amount up or was down from 117 in the prior down. Then, they year, which means Manulife felt evaluate individual it didn’t do as well, compared performance and with its goals, as it did in 2018. Manulife’s board also took in- adjust again. to account individual performance, and awarded the five top-paid executives bonuses that were anywhere from 129 per cent of their target bonus to 168 per cent, in the case of Mr. Gori. At Sun Life, cash bonuses declined for all six top-paid executives when compared with 2018. The company missed its goals for earnings per share and the value of new business it generated, but made its goal for client satisfaction. It gave itself a performance factor of 90 per cent for business results, compared with 108 per cent in 2018. Sun Life then adjusted the 2019 bonuses upward based on individual performance, with the six executives getting 115 per cent to 122 per cent of their target bonuses. Mr. Connor’s payout was 122 per cent. Manulife stock returned 42 per cent in 2019, while Sun Life shares returned 35.9 per cent. Net income increased just less than 13 per cent at Manulife and less than 4 per cent at Sun Life in 2019. On an adjusted basis, a metric preferred by insurers because it strips out volatility, Manulife reported profit growth of 5 per cent, while profit rose 4 per cent at Sun Life. MANULIFE (MFC) CLOSE: $16.81, DOWN 86¢ SUN LIFE (SLF) CLOSE: $43.31, DOWN $1.96

BUSINESS CLASSIFIED

Monthly Distributions

11.24% Yield*

TO PLACE AN AD CALL: 1-866-999-9237 EMAIL: [email protected] Property Trust (FCD.UN-TSXV)

COMMERCIAL REAL ESTATE

LIST PRICE: $34,500,000


 9999 - 146 Avenue SE, Calgary, Alberta Located within the planned community of Hotchkiss. As set forth in the South Shepard Area Structure Plan, it is to be developed into a future residential subdivision consistent in form and density with many of its currently builtout neighbours.

Ken Westhaver* +1 403 456 2209 [email protected] Ryan Murphy +1 403 456 5582 [email protected] JLL Real Estate Services, Inc. *Sales Representative

www.jll.ca

Have The Globe and Mail delivered to your door

CALL 1-800-387-5400 TGAM.CA/SUBSCRIBE

www.FirmCapital.com th

*Asat atFebruary March 2627,th2020 *As 2015

MEETING NOTICES

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS AND PARTICIPATING POLICYHOLDERS Prime Residential Development Land

B3

DAVID MILSTEAD INSTITUTIONAL INVESTMENT REPORTER

CLARE O’HARA WEALTH MANAGEMENT REPORTER

Aviva Canada CEO Jason Storah says the insurance company will “stand by” its pandemic coverage for dentists who followed provincial orders to close down their practices because of the outbreak of COVID-19. The reassurance to the dental community comes two weeks after provincial dental associations “strongly recommended” that thousands of dentists immediately suspend all non-essential and elective or routine services for patients. But after submitting claims with Aviva for business interruption insurance – which includes pandemic coverage – many dentists were left in the dark about whether their policies would be honoured, with several dentists told it was highly unlikely because they shut their offices down voluntarily. Andrea Johnstone, a periodontist in Toronto, along with her colleague Sue Chincholi, began an online petition to fight the delay in getting a decision on their insurance policy, and more than 18,500 dentists had signed by Tuesday morning. Mr. Storah said late Tuesday the company received “unprecedented COVID-19 related pandemic coverage insurance claims” from dentists and that the delay was due to a “number of complex legal, regulatory and operational hurdles” related to the dentists’ claims. However, he said, the hurdles have been resolved by the provincial governments’ shutdown orders for nonessential services. “I can confirm today that Aviva Canada will of course stand by this pandemic coverage provided to the dentists in respect to those provincial orders closing down all non-emergency dental treatment,” Mr. Storah said. “We will be issuing guidance and next

|

Notice is hereby given that the Annual Meeting of the shareholders and participating policyholders of The Empire Life Insurance Company (Company) will be held at 165 University Avenue, Toronto, Ontario, on Thursday, April 30, 2020 at 3:30 p.m., Eastern Time, for the following purposes: 1. To receive and consider the consolidated financial statements of the Company for the year ended December 31, 2019 together with the report of the auditors thereon; 2. To elect Shareholders’ Directors and Policyholders’ Directors; 3. To reappoint PricewaterhouseCoopers LLP as auditors and to authorize the directors to fix the auditors’ remuneration; and 4. To transact such further or other business as may properly come before the meeting (or any postponement or adjournment thereof). DATED at Kingston this 10th day of March, 2020. By Order of the Board of Directors Heather L. Christie, Corporate Secretary Considering the directives from public health officials on group settings, Empire Life has organized a live webinar to support public health efforts in managing COVID-19 and is urging its common shareholders and participating policyholders to vote by proxy and asking interested stakeholders and such shareholders and policyholders to remain at home and not attend the annual meeting in person. Live coverage of the meeting will be available on the Events section of our website (www.empire.ca). Participating Policyholders may receive a copy of the management information circular by submitting a request to the Secretary at The Empire Life Insurance Company, 259 King Street East, Kingston, ON K7L 3A8.

NOTICE OF ANNUAL MEETING OF MANULIFE FINANCIAL CORPORATION AND THE MANUFACTURERS LIFE INSURANCE COMPANY The Annual Meeting o1 CoNNon ShaReholdeRS o1 Manuli1e Financial CoRpoRation and the Annual Meeting o1 PolicyholdeRS and the ShaReholdeR o1 The Manu1actuReRS Li1e InSuRance CoNpany (togetheR the “Meeting”) will be held on ThuRSday, May 7, 2020 at 11:00 a.N. EaSteRn tiNe by electRonic NeanS. ShaReholdeRS and policyholdeRS will not be able to attend the Meeting in peRSon but aRe invited to view the live bRoadcaSt on ouR webSite (Nanuli1e.coN). ShaReholdeRS, policyholdeRS and theiR duly appointed pRoxyholdeRS will be able to aSk queStionS and vote duRing the live bRoadcaSt by 1ollowing the inStRuctionS Set out at Nanuli1e.coN. ShaReholdeRS and policyholdeRS aRe encouRaged to vote and SubNit pRoxieS pRioR to the Meeting. FoR NoRe in1oRNation on the Meeting, including how to vote in advance, pleaSe viSit Nanuli1e.coN. PolicyholdeRS o1 The Manu1actuReRS Li1e InSuRance CoNpany who would like in1oRNation on how to Receive notice o1 1utuRe NeetingS Nay wRite to the CoRpoRate SecRetaRy, The Manu1actuReRS Li1e InSuRance CoNpany, 200 BlooR StReet EaSt, ToRonto, OntaRio, Canada, M4W 1E5. ApRil 2, 2020 ToRonto By ORdeR o1 the BoaRd o1 DiRectoRS Antonella Deo CoRpoRate SecRetaRy

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS To SuppoRt public health e11oRtS in Nanaging COVID-19, CIBC’S annual Neeting will be held on WedneSday, ApRil 8, 2020 at 10:30 aN EDT and will be viRtual only. CIBC encouRageS ShaReholdeRS to vote in advance aS deScRibed in ouR ManageNent PRoxy CiRculaR. Attend the live webcaSt at www.cibc.coN/en/about-cibc/ inveStoR-RelationS/annual-Neeting.htNl oR by telephone at EngliSh: 1-800-952-5114 (Canada and the US) paSScode: 4473807 FRench: 1-877-395-0279 (Canada and the US) paSScode: 1414336 PleaSe check ouR webSite 1oR additional in1oRNation on attending and voting at the Neeting. ShaReholdeRS with queStionS Nay contact CIBC’S tRanS1eR agent at the nuNbeR included in CIBC’S CiRculaR. Michelle Caturay Senior Vice-President, Associate General Counsel and Corporate Secretary

NATIONAL BANK OF CANADA Notice of Annual Meeting of the Holders of Common Shares The Annual Meeting of the Holders of Common Shares of National Bank of Canada will be held at 10:00 a.m. (EDT) on Friday, April 24, 2020, in virtual format only which will be conducted via webcast. By order of the Board of Directors, Dominic Paradis Senior Vice-President, Legal Affairs and Corporate Secretary Montreal, March 18th, 2020