Top dollar: ANZ's Mike Smith.

Top dollar: ANZ's Mike Smith Photo: Jessica Shapiro

MIKE SMITH has emerged as Australia's highest-paid banker with a package worth nearly $10 million last year.

The bank will also ask shareholders to approve a $3.2 million options package to be paid out to the ANZ chief executive over three years if certain performance targets are met.

Mr Smith took home the equivalent of $9.7 million in cash shares and deferred bonus payments. His latest remuneration package is down slightly from $10 million last year and comes as the bank has called for austerity among its senior staff.

In August, ANZ extended a pay freeze on salaries of the bank's 900 top earners, citing weak conditions in the sector.

Mr Smith's pay comes in slightly ahead of Westpac chief executive Gail Kelly who last year was paid $9.6 million in shares, cash and other benefits. Commonwealth Bank chief executive Ian Narev got $5.7 million over the past year, although he was only in charge of the bank for seven months of the financial year.

Details about National Australia Bank chief Cameron Clyne's remuneration are expected to emerge next week.

Even with the pay freeze, ANZ will ask shareholders to approve a $500,000 increase in the total remuneration pool paid to the bank's directors to $4 million. The bank's non-executive directors collectively received $2.8 million over the past year.

ANZ said Mr Smith's short-term incentives rose as the bank beat its targets for shareholder returns, and met its underlying profit target with an annual result of $6.01 billion.

Recently appointed chief financial officer Shayne Elliott received a boost to short-term and long-term incentives, which took his total pay to $4.5 million, up from $2.8 million the previous year. ANZ chairman John Morschel said although the coming year looked challenging with headwinds in a number of areas for the sector, ANZ was well placed to deliver value to shareholders.

With AAP