Bob Dudley faces hit to pay package as BP bids to avoid fresh investor revolt

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BP boss Bob Dudley has seen his pay package slashed by 40% for 2016 and his maximum earnings cut by 3.7 million US dollars (£3 million) over the next three years to see off a fresh shareholder rebellion.

The oil giant confirmed the new proposed pay deal will be "simpler and more transparent" and lead to "lower levels of reward" as it looks to avoid a repeat of last year's investor revolt.

Almost 60% of BP shareholders voted against a 20% hike in Mr Dudley's pay to nearly 20 million US dollars (£16 million) for 2015 despite the group posting its largest annual loss for at least 20 years and axing thousands of jobs worldwide.

The group's latest annual report revealed that Mr Dudley's pay package was cut to 11.6 million US dollars (£9.3 million) last year.