Manulife Financial Corp. will provide shareholders with a non-binding, advisory vote on the company’s executive compensation policy starting at its annual meeting in 2010, the company said Thursday.

“The board’s initial recommendation that shareholders vote against ‘Say on Pay’ this year was based on the lack of support for the proposal among Manulife shareholders in 2008, as well as the views of Canadian institutional shareholders, many of whom opposed an advisory vote until just recently,” said Manulife Chair Gail Cook-Bennett, in a release.

“Since the release of Manulife’s proxy circular we have seen the Canadian Coalition for Good Governance come out in favour of ‘Say on Pay’, and have also heard from many shareholders who now support the measure, so the board decided to respond.”

As a result of Manulife’s decision, the Mouvement d’éducation et de défense des actionnaires (MEDAC) has withdrawn its shareholder proposal on this issue from consideration at the company’s annual and special meeting being held on May 7, 2009, in Toronto.

IE