Fonterra's Shareholders Council is taking a relaxed approach to the huge paycheck being handed to the group's chief executive.

LISTEN ABOVE TO FONTERRA CHAIRMAN, JOHN WILSON, TALK TO LARRY WILLIAMS.

Theo Spierings has seen his pay jump nearly 80 percent, to more than $8 million dollars.

Chairman of the Shareholders Council Duncan Coull said for the company to be internationally competitive, it needs the best people.

"I think it's a fair thing to acknowledge that it is a big number but we need to put some perspective to that, the most important thing is to ensure that the bonuses are in line and reflective of a shift in performance of the business and from our perspective there has been a huge shift in the last two years."