National Australia Bank chief executive Cameron Clyne earned $5.3 million in the year to September, the third most among the big four bank CEOs.

NAB’s annual report, released on Monday, showed Mr Clyne was paid a cash salary of $2.84 million, and also received $2.03 million cash in short-term incentives.

Short-term incentives are based on the bank’s cash earnings, return on equity and return on total allocated equity.

NAB’s cash earnings grew by 19 per cent to $5.46 billion in the year to September, while return on equity also rose, to 15.2 per cent.

Mr Clyne received a further $444,995 worth of shares during NAB’s fiscal 2011 year as part of previous years’ incentives.

NAB is the last of the big four banks to release its annual report.

Commonwealth chief executive Ralph Norris received the largest remuneration package, taking home $4.76 million in cash plus $7.7 million in previous years’ incentives that vested during 2010/11.

Westpac’s Gail Kelly earned $8.68 million, and ANZ’s Mike Smith earned $5.01 million.

NAB’s annual report showed that on a statutory basis, which includes bonuses to be deferred and incentives reliant on future performance, Mr Clyne’s remuneration totalled $8.68 million, up 12 per cent from the previous year.

The increase came with slightly higher cash short term incentives and higher share-based payments.

Two other senior directors who left NAB during the year were also paid more than $5 million in the year.

Michael Ullmer, NAB’s deputy chief executive before leaving the group on August 31, earned $5.37 million, including a $1.25 million termination payment.

Lynne Peacock, the group executive in the United Kingdom before leaving NAB on July 1, earned $5.1 million, including a $743,388 termination payment.