$1 million pay cut for NAB chief

National Australia Bank chief executive Cameron Clyne's statutory pay has been cut by $1 million to $7.7 million after the bank fell short of key targets in 2012.

The bank's annual report, published on Monday, shows the value of bonus payments to Mr Clyne fell in the year to September, following weaker performance a year earlier.

The cut, which had been flagged by Mr Clyne, comes after investors issued NAB a stinging rebuke at its annual meeting last December, with 21 per cent of shareholders voting against the remuneration report after a sharp fall in profit.

The protest vote meant the bank narrowly avoided a first "strike" over remuneration, which could have brought the board a step closer to facing a spill.

NAB's performance improved in 2013, with profit rising 9 per cent to $5.9 billion, but a spokeswoman said the weaker results from 2012 had contributed to the lower bonus payments this year.

In NAB's annual review, also published on Monday, Mr Clyne appeared confident about further profit growth after the bank embarked on a cost-cutting program and revamp of its technology systems.

"We have started to see signs of improvement in our operating environment this year, and the changes we have made put us in a better position than our competitors to take advantage of those opportunities," he wrote.