British energy company BP said it cut the pay for CEO Bob Dudley as part of a measure that links salaries to the outcome and delivery of the corporate strategy.
The company announced Thursday that Dudley's total remuneration last year was 40 percent lower than 2015 at $11.6 million. BP shareholders had voted against a raise for Dudley as the company struggled through the weakened energy market. The company ordered a review of its policies in the wake of the revolt and the results were disclosed Thursday.
"In reaching their final decisions, BP's remuneration committee considered results from the current remuneration policy alongside outcomes for shareholders, and exercised downward discretion," the company said in a statement. "This use of discretion reduced Bob Dudley's 2016 remuneration by $2.2 million."
The company started worrying about a decline in crude oil prices in late 2015. Fourth quarter profits that year were already down 50 percent for the British company and Dudley said at the time the company was in the midst of a "reset."
In reviewing its pay policy, a remuneration committee set a cap at $3.7 million.
"After a thorough review and extensive shareholder engagement, we believe the new policy is simpler, more transparent and has strategic focus," said Ann Dowling, chairwoman of the committee.
BP posted a profit for the first quarter.
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