In fiscal 2016 Mr Mackenzie received no short term incentive payments, and received total remuneration for that year of $US2.24 million, in the wake of the Samarco mine disaster in Brazil.

BHP's annual report, released on Wednesday, also revealed that under the company's current remuneration approach, Mr Mackenzie's maximum total remuneration in a year could be $US13.1 million, but this would require strong short-term and long-term performance that delivered maximum incentive payments.

BHP reported these remuneration figures mentioned above under British regulations, its preferred approach because it provides a measure of actual remuneration.

Under Australian accounting standards Mr Mackenzie's total remuneration for fiscal 2017 was reported as $US7.01 million, but this figure includes almost $US3 million worth of long-term incentives which may, or may not materialise. For example In fiscal 2017, none of Mr Mackenzie's long term incentive awards vested, because they did not meet the performance conditions.

While total annual pay of $US4.55 million, or $US7.01 million are hefty figures on their own, Mr Mackenzie's fiscal 2017 pay was much lower than what some of Australia's other business leaders earned.

Qantas chief executive Alan Joyce, for example, reportedly received total remuneration of $24.6 million, thanks to a huge jump in the value of Qantas shares he was pledged three years ago if he could turn the business around. He did.

And Wesfarmers revealed on Wednesday that its chief executive, Richard Goyder, was paid $12.09 million in fiscal 2017. Both Wesfarmers and Qantas have a market capitalisation far smaller than BHP's, even if the figures were combined.

Melbourne-based Mr Mackenzie's total remuneration included a base salary of $US1.7 million, plus short term incentives ($US2.34 million), superannuation payments equal to 25 per cent of his base salary ($US425,000), and benefits including health insurance ($US90,000).

Mr Mackenzie's base salary was unchanged last financial year, and has remained unchanged since his appointment as chief executive in 2013.

BHP's annual report also revealed a cut of $US80,000 to the chairman's fee, bringing it to $US880,000.

Carolyn Hewson, chairman of the company's remuneration committee, said BHP's new chairman Ken MacKenzie "supported" the lower fee.

"The remuneration outcomes for fiscal 2017 are aligned with the group's performance during the year. In late 2017, our remuneration policy will be put before shareholders at the annual general meeting for the required three-yearly re-approval. After our review this year, the committee concluded that, at this time, we should not make any material change to the policy which has been supported strongly by shareholders through their votes at BHP's AGMs over many years," she said.

Ms Hewson said the "key difference" behind the CEO's higher remuneration for 2016-17 "is that Mr Mackenzie did not receive any short-term incentive in fiscal 2016 as a consequence of the dam failure at Samarco, along with the ongoing decline in commodity markets and its associated impact on our performance, in that year".

BHP also released a "Sustainability Report" in which it outlined a long-term goal of achieving "net-zero operational greenhouse gas emissions in the second half of this century," and to "enable water resource management systems in all catchments" that BHP operates in by fiscal 2030.

Mr Mackenzie said BHP recorded "strong" financial and operational results for fiscal 2017. "All our operated assets were free cash flow positive and delivered a total free cash flow of $US12.6 billion. We used this cash to strengthen the balance sheet and return $US4.4 billion to you, our shareholders," he said.