Coles boss Ian McLeod is destroying the livelihoods of Australian farmers and wiping them out with a "new form of extreme capitalism", entrepreneur Dick Smith says.

Mr Smith's comments follow reports that the supermarket chief pocketed a $15.6 million pay cheque for 2010-11.

Dick Smith, inset, accuses Coles chief Ian McLeod of destroying farmers' livelihoods.

The "whopping" pay packet has prompted outrage from Mr Smith, 67.

"Where does this extra money come from?" the former retail electronics king and Australian of the Year asked.