The Federal Government has confirmed that NBN Co chief executive officer and chairman Mike Quigley will be paid $1.95 million a year to oversee the national broadband network.
But he won't get long-term incentive bonuses, shares or options common to the private sector.
The Government said the six NBN Co directors will be paid $90,000 each a year.
And the Government will appoint a non-executive chairman allowing Quigley to focus on his role as CEO.
Shadow Communications Minister Nick Minchin accused the Government of "reckless spending".
"This is the type of remuneration afforded to the CEOs of successful, long-established companies, not $2 companies with nothing yet to do," Minchin said.
But a Government spokesman said the package was "well within industry standards applicable in other government business enterprises and the telecommunications sector".
Telstra chief executive officer David Thodey was paid $3.5 million; his predecessor Sol Trujillo left the company with $9.06 million, of which $3.76 million were termination benefits.
Optus chief executive officer Paul O'Sullivan was paid $2.7 million in the past fiscal year.
As reported by iTnews yesterday, former Telstra chief operating officer Greg Winn walked away with $5.34 million for his last nine months with the carrier.