WH Smith chief executive Kate Swann collected £3.3m in salary and long term share payouts during her final year in the job, according to the company's annual report.
Swann, who steps down next summer after 10 years, could be entitled to a further £2.6m of payouts tied up in long-term incentive plans.
Her successor, Steve Clarke, who runs the high street branches, will be paid 8.7% less in salary than Swann and will be entitled to a maximum annual bonus of £768,000, compared with Swann's £1.1m. His basic pay will be £480,000, while Swann earned £525,000.
The reductions come after years of complaints by shareholders about excessive bonuses in the retailer's boardroom. In 2011, investors speaking for 30% of the shares failed to back the group's executive pay arrangements.
The rebellion led to pay committee chairman Drummond Hall agreeing to ditch an unpopular three-year incentive plan – which triggered a £5.5m share bonus for Swann in November 2010 – admitting it was "not consistent with evolving best practice".
Clarke, has also signed up to a clawback clause in his contract which would be triggered should any serious problem arise "which would have warranted summary dismissal".
Swann has not said what she will do after she steps down. She is likely to receive dozens of offers from retailers after turning around the ailing newsagent. Last year WH Smith made a pre-tax profit of £102m. Swann also has 634,000 shares worth £4.2m to fall back on.