Ahmed Fahour announced his resignation in February, after seven years at the helm and a political furore over the size of his multi-million dollar pay.
Mr Fahour will take home a long-term incentive payment of $4 million on top of his $6.8 million dollar salary, short-term incentives, and superannuation.
Australia Post chairman John Stanhope said it did not include a termination payment, and fulfilled contractual obligations.
"It was aimed at enticing a high level talented executive to transform Australia Post," Mr Stanhope said.
"That was the basis of that contract and we have observed our obligations," he said.
Professor Thomas Clarke, from the University Technology Sydney said it didn't explain why Australia Post had to pay so much.
"The question is, why did they make those obligations?" Professor Clarke mused.
"It was very misconceived of that board and misconceived of corporate Australia to think that they can pay these astonishing sums to CEOs," he said.
Australia Post has also announced it nearly trebled its annual profit in the chief executive's final year.
A strong performance from parcel post largely responsible for before tax profits of $126 million, up from $41 million last financial year.
The Communication Workers Union called Mr Fahour's payment "obscene".
The Union's Leroy Lazaro said his members, who were receiving pay rises at less than CPI, were outraged.
"Our members received an annual wage of around $48,000," Mr Leroy told SBS World News.
"If you divide (Mr Fahour's payment) into 52 weeks, it's almost $211,000 a week," he said.
The Prime Minister Malcolm Turnbull said that kind of pay packet would not be seen at Australia Post again.
"We have now made changes to ensure that the Remuneration Tribunal sets the salary of the CEO of Australia Post," Mr Turnbull said.
Later this year, former Blackmores CEO Christine Holgate will step into the role at a much lower rate.
She will receive $1.375-million, a figure Australia Post hoped would be more in line with "community expectations".
But Professor Clarke said he doubted that will influence other CEO salaries.
"Unfortunately the board rooms of Australia in the listed corporate sector are not under the same constraints," Professor Clarke told SBS World News
"They seem to be pretty much determined to carry on paying their CEOs what they want," he said.
-- With AAP
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