The package of chief executive Sue Morphet, who announced on Wednesday that 1850 of the company's jobs would be sent off-shore, rose from $685,775 to $1.86 million last year, the Herald Sun newspaper reported.
This included a seven-fold rise in "incentive payments" - bonuses for axing jobs, the newspaper said - and came despite a 45 per cent drop in the share price in the six months before the pay rises were approved.
But the company says Ms Morphet's pay increase was the result of a promotion from general manager of the underwear and hosiery division to Pacific Brands' CEO.
"Her remuneration is approximately half that of the previous chief executive officer, a decision taken by the board and incoming chief executive officer," a statement from the company said.
Upon her appointment Ms Morphet embarked on a comprehensive review across the business to ensure its ongoing sustainability, it said.
"The outcome of that review was announced earlier in the week and has resulted in the deeply regretted redundancies," it stated.
ACTU president Sharan Burrow lashed out at the salary increase labelling the pay hike last year as "obscene" and a "corporate crime".
"It's obscene," Ms Burrow said. "Corporate Australia, it would seem, has lost its moral compass."
Ms Burrow said the Bonds owner was cynically moving offshore to increase profits, despite receiving $15 million from taxpayers over the past two years to reskill and retool.
"It's a crime, it's a corporate crime, there's no doubt about that."
The ACTU chief also blasted outgoing Telstra chief executive Sol Trujillo for accepting an estimated $30 million golden handshake, despite sacking thousands of workers during his time at the top.
"This is not the kind of corporate leadership Australia needs," Ms Burrow said. "We need people who are prepared with the shareholders to take a hit on the bottom line this year to see Australia through and keep jobs in the economy."
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