Shareholders have backed Westpac boss Gail Kelly's $9.6 million pay packet, the second largest of any Australian chief executive.
Only one shareholder raised concerns about the bank's executive pay at the Westpac annual general meeting on Thursday, and more than 88 per cent of shareholder votes were in favour of the bank's 2011/12 remuneration policy.
Mrs Kelly is the second-highest-paid bank chief executive Australia, behind her rival at ANZ Mike Smith, who earned $9.7 million in the 2011/12 fiscal year.
The two bank bosses earned more than BHP boss Marius Kloppers and Rio Tinto chief executive Tom Albanese in the 2011/12 year.
In response to a shareholder labelling Mrs Kelly's pay excessive, chairman Lindsay Maxsted told the meeting her pay packet was fair and in line with the bank's competitors.
"I'm the first to acknowledge that it is a lot of money, we don't shy away from that at all," he said.
"But we work very hard to see that it is market driven, we work very hard to ensure it rewards performance.
"The fact is they are big numbers but Westpac is a very big and complex business."
He also indicated pay for Westpac executives and managers would fall as incumbents are replaced.
"We are all very conscious about the current levels of remuneration, and I think you will see within Westpac as you have seen in other organisations that as roles turn over then there may well be a lowering of the expectation of what the remuneration should be," Mr Maxsted said.
Rival NAB received much a stronger reaction from its shareholders for its executive pay policy, with 17 per cent voting against the report at its annual general meeting in Perth.
Chief executive Cameron Clyne was the third highest paid bank chief in 2011/12, earning $8.8 million, despite NAB's net profit falling 22 per cent.