NAB has adjusted its executive pay packets in response to community concern.

NAB chair Ken Henry says a new remuneration structure for the executive leadership team show the bank is focusing on customers and shareholders.

But the size of the cuts, if they are to be made at all, will not be known until NAB releases its annual report in November.

“Where NAB falls short of customer, shareholder and community expectations, the new framework provides the board with the ability to hold leaders accountable,” Dr Henry said.

Chief executive Andrew Thorburn would see his “at target” remuneration drop to $7.94 million, down $1 million — or 11 per cent — on last year.

“At target” pay comprises both a basic $2.3 million salary and a variable incentive of $4.6 million and dividends of $1 million.

The variable reward replaces the old incentives which delivered between $5.4 million and $7.2 million last year.

But Mr Thorburn could still be paid $10.8 million this year, as the variable reward can go up to a maximum of $6.9 million.

The new deal is in line with the Federal Government's Bank Executive Accountability Regime (BEAR),  which requires at least 60 per cent of CEO bonuses and 40 per cent of other senior executive bonuses to be deferred for a minimum of four years.

BEAR also enforces policies to cut bonuses “should circumstances warrant it”.

Dr Henry said NAB wants to improve its customer focus.

“The new framework provides the right tools to assure performance,” Dr Henry said.

“NAB is a complex business and the board recognises it is important to attract, retain and reward skilled executives, while remaining mindful of the quantum of executive remuneration.”