Telstra chief executive Andy Penn's pay packet increased 34 per cent to $5 million last financial year, despite sharp falls in profits and dividends at the nation's biggest mobile carrier.

The pay bump comes just a year after shareholders revolted over executive pay, handing the telco a 'first strike' vote over the bonuses paid to Mr Penn and his senior management team.

Telstra chief executive Andy Penn just got a big pay rise. Credit:Steven Siewert

Mr Penn's overall remuneration, including bonuses and fixed pay, increased 33.6 per cent to $4.998 million in terms of actual pay following two years of pay cuts. Last year, Mr Penn received a total of $3.74 million, down from $5.2 million in 2017 and $6.76 million in 2016.

The figures were published as Telstra reported its full-year results for 2019 on Thursday, revealing a sharp drop in operating earnings and a 40 per cent slump in net profit, while warning shareholders to brace for an even bigger impact on its bottom line next year as a result of the National Broadband Network.