National Australia Bank chief executive Andrew Thorburn's pay packet rose to $6.7 million last financial year after the bank unloaded a swag of poorly performing overseas businesses in order to lift returns.
The bank's annual report, published on Monday, showed Mr Thorburn's remuneration increased by $1.2 million from the previous year, mainly because of performance rights granted as part of his bonus.
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NAB delivers $6.48 billion profit
National Australia Bank delivers a full year-profit of $6.48 billion and kept its dividend steady despite predictions it would cut its payout to shareholders.
It comes after a year in which the bank floated United Kingdom lender Clydesdale Bank, which had long been a drag on profits, while also reaching a deal to sell 80 per cent of its life insurance business to Japan's Nippon Life.
Mr Thorburn has instead vowed to plough more capital into the higher-returning Australian retail and small business banking markets and its New Zealand business.
The report also showed the bank's total spending on the pay of its most senior executives lifted by $7.7 million in the year, to $35 million, in part because of $3 million in termination payments to three executives who left NAB in a July restructure.
The three executives, former retail banking boss Gavin Slater, group executive for enterprise services Rene Roberts, and group executive for governance and reputation Michaela Healy, each received a termination payment, the report showed.
In the year to September, NAB's profit - adjusting for asset sales - grew by 4 per cent to $4.68 million, and it kept the dividend on hold at 99¢ a share.
Mr Thorburn's pay is in line with the $6.7 million paid to Westpac chief Brian Hartzer. It is about 80 times the average full-time wage of $81,900.
The highest paid major bank chief is Commonwealth Bank boss Ian Narev, who received $12.3 million last year including shares vesting from previous years. ANZ Bank's annual report last week showed its chief Shayne Elliott received $5.07 million.
The role of pay in finance has been put under the spotlight in recent years, with the financial regulator last month launching a review of executive pay in the sector, and the Commonwealth Bank last week becoming the country's first big four lender to receive a first "strike" on its remuneration report.
Bank chairs argue they are responding to public concerns about remuneration and incentives in finance. While the current CEOs of the big four each are among the highest-paid bosses in the country, they are each paid less than their predecessors.
After Mr Thorburn, the highest paid executive in NAB was Andrew Hagger, who runs its wealth and retail arms and was paid $4.01 million, followed by business banking executive Angela Mentis, who was paid $2.68 million.