Watch: 'It's pretty extraordinary' – Jacinda Ardern slams Fonterra bosses massive $8.32 million pay package

Jacinda Ardern has hit out at Fonterra chief executive Theo Spierings' massive $8.32 million pay package.

Theo Spierings, New Zealand's highest paid chief executive, just received a 78.5 per cent jump in pay. Source: 1 NEWS

The company's annual result shows Mr Spierings was paid $8.32 million in 2017, a figure which equates to over a 75 per cent increase over the previous year.

"I think it will make people's eyes water to see that salary it is pretty extraordinary," Ms Ardern said when asked about his wages at a media stand-up in Wellington today.

Theo Spierings is New Zealand's highest paid chief executive. Source: 1 NEWS

"I imagine the shareholders in particular will have some pretty strong feelings about it."

Quizzed on why the shareholders would worry about his massive pay-out, she replied: "In part they're the ones the money is cut from."

Ms Ardern went on to say she has common ground with Winston Peters in this area and agrees with his proposed say-on-pay law, which would give shareholders the right to hold executives to account.

A Fonterra spokesman says Mr Spierings huge wage increase is tied in to incentive payments and bonuses for hitting company targets.

His pay is determined by an independent committee who compare it with 24 Australian companies of a similar size and complexity.

While the company's total sales were up last year, its net profit dropped by 11 per cent to $745 million dollars.