Cameron Clyne, chief executive of Australian banking major NAB who controversially passed on just 20 basis points of the 25 basis point cut enacted by the Australian central bank, despite the fact that the lender posted a 19.2 per cent increase in full year net profits on $5.5 billion is in line for a large pay hike.

The lender released its annual report recently which shows the NAB chief received a pay hike of 12 per cent, meaning Mr. Clyne received $8.67 million in compensation during the last financial year.

Mr. Clyne's total compensation was increased by over $950,000 compared to the previous year, which comprises a base salary worth $2.7 million, and stock worth $3.8 million, and short term cash bonuses worth $2 million.

Mr. Clyne's contemporaries at ANZ and Westpac have both had their cash bonus components of their compensation packages cut. ANZ chief Mike Smith saw his cash bonus cut by as much as $750,000, whilst Westpac chief Gail Kelly had her short term cash bonus component cut by $460,000. In contrast Mr. Clyne saw his cash bonus component rise by $108,000.

"Executive remuneration at NAB is directly linked to the performance of the company and includes the achievement of customer, employee and shareholder objectives." An NAB spokesperson said.

NAB's cash earnings rose by 19 per cent to $5.46 billion for the full year ending September 30th. The lenders Return on Equity also rose by 2 per cent to 15.2 per cent.

Despite his pay hike, Mr. Clyne's compensation package is the third largest amongst the big four lenders. Ms. Kelly's package is worth $9.86 million, CBA chief Ralph Norris received $8.64 million during his last year in the role, whilst Mike Smith received over $10 million.